Mumbai: While welcoming extension of interest subsidy scheme for this year, Real estate industry body MCHI has called for more interest rate concessions for lower middle and economically weaker section of the society for housing.
"The extension of the scheme offering concessions in interest rate is a positive step, which will act as an incentive to home loan borrowers," Maharashtra Chamber of Housing Industry President Paras Gundecha said in a statement today.
Under the scheme, interest subsidy at the rate of one per cent on housing loans up to Rs 15 lakh where the cost of the house does not exceed Rs 25 lakh is given. The scheme announced last year was extended to FY13 as well.
A budgetary provision of Rs 400 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 per cent, 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.