What changed
The scheme's validity has been extended to March 31, 2012. Loans sanctioned and disbursed between October 1, 2009 and March 31, 2011 are excluded from the new liberalised scheme and will be governed by the previous instructions, which limited loans to Rs. 10 lakh with project cost up to Rs. 20 lakh.
What it means for you
Banks can continue offering the 1% interest subvention on eligible housing loans up to Rs. 10 lakh for an additional period. For loans under the old scheme, existing reimbursement procedures remain unchanged. Banks must await separate revised instructions for claiming reimbursement under the new scheme.
What you must do
- Extend the 1% interest subvention scheme on housing loans up to Rs. 10 lakh until March 31, 2012.
- Treat loans sanctioned and disbursed between Oct 1, 2009 and Mar 31, 2011 under the old scheme (loan up to Rs. 10 lakh, project cost up to Rs. 20 lakh).
- Continue claiming reimbursement for old scheme loans as per original instructions.
- Await revised instructions from RBI for claiming reimbursement under the new scheme.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Housing loan borrowers seeking subvention benefits, Bank operations teams handling subsidy claims
What is the new deadline for the 1% interest subvention scheme?
The scheme has been extended up to March 31, 2012.
Are loans sanctioned between Oct 2009 and Mar 2011 eligible under the new scheme?
No, those loans are outside the new liberalised scheme and will be treated under the old instructions, which required loan amount up to Rs. 10 lakh and project cost up to Rs. 20 lakh.
How should banks claim reimbursement for loans under the new scheme?
Banks should continue using the original scheme's claim process for now. Revised instructions for new scheme claims will be issued separately.