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National Housing Bank (NHB)

Main Programmes and Schemes.

Scheme of 1% Interest Subvention on Housing Loan up to Rs. 15 lakhs

The Finance Minister had announced a Scheme of 1% Interest Subvention on Housing Loan up to Rs. 10 lakhs. Pursuant to the above mentioned announcement, the Government of India had approved a Scheme of Interest Subvention on Housing Loan up to Rs. 10 lakhs, provided the cost of the unit does not exceed Rs. 20 lakhs. From FY 2011-12, the scheme of 1% interest subvention is available for Housing Loan up to Rs. 15 lakhs, provided the cost of the unit does not exceed Rs. 25 lakhs. The Scheme is implemented throughout the country and is in operation for a period of 1 year starting from 1st October, 2009 to 30th September, 2010. Interest subsidy of 1%, is applicable for first 12 months of eligible loans sanctioned and disbursed during the currency of the Scheme. This scheme has further been extended twice i.e. for FY 2011-12 and FY 2012-13 respectively.

The Scheme is implemented through the Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with National Housing Bank (NHB). The Reserve Bank of India (RBI) and NHB are Nodal Agencies for the Scheme for SCBs and HFCs respectively. From the FY 2011-12, Ministry of Finance, Government of India has designated National Housing Bank (NHB) as the Common Nodal Agency for both Schedule Commercial Banks (SCBs) and Housing Finance Companies (HFCs) for implementation & disbursement of subsidy under the Scheme. Earlier Reserve Bank of India (RBI) and NHB were the Nodal Agencies, for SCBs and HFCs, respectively. The Government had allocated a sum of Rs. 300 crores for implementation of the Scheme during the financial year 2011-12. The full allocated budget under the Scheme for FY 2011-12 has been utilized. The Department of Financial Services (DFS) has framed guidelines for implementation of the Scheme.

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