Loan value on interest subvention

The central government will soon increase the amount of loans eligible for interest rate subvention under affordable housing to Rs 5 lakh from Rs 1 lakh earlier, said GS Sandhu, secretary, financial services.

The subvention rate is five per cent. "Houses have to be made affordable for buyers. We are trying to address issues relating to financing part of it," Sandhu said.

He said that government has given certain tax incentives in the last Budget and in the next Budget, whatever is left out will be covered, he said.

He added that state governments have a big role to play in affordable housing. They can give faster approvals, increase floor area ratio and to give a boost to the affordable housing.