Housing industry seeks more interest rate concessions for poor

Maharashtra Chamber of Housing Industry has called for more interest rate concessions for lower middle and economically weaker sections for buying home

Mumbai: While welcoming extension of interest subsidy scheme for this year, real estate industry body Maharashtra Chamber of Housing Industry (MCHI) has called for more interest rate concessions for lower middle and economically weaker section of the society for housing, reports PTI.

"The extension of the scheme offering concessions in interest rate is a positive step, which will act as an incentive to home loan borrowers," MCHI President Paras Gundecha said in a statement.

Under the scheme, interest subsidy at the rate of one percent on housing loans upto Rs15 lakh where the cost of the house does not exceed Rs25 lakh is given. The scheme announced last year was extended to FY13 as well.

A budgetary provision of Rs400 crore has been made for 2012-13 for implementing the scheme.

The realty body has however called for more interest rate concessions for lower middle and economically weaker sections to help them own a house.

"These sections are the worst hit as they cannot afford a house due to high cost of housing triggered by increase in cost of inputs and finance. The government should extend the benefit of lower rate of interest of 6-7%, currently available to some government and public sector employees, to all, so that housing would really become affordable in the true sense of the word," Gundecha added.

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