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  Scheme of 1% interest subvention on housing loan upto
rs.15 lakh From Ministry of Finance, Department of Financial Services, Govt. of India
  The objective of the Scheme is to provide interest subsidy on housing loan to improve affordability of housing to eligible borrowers in the middle & lower income groups.    
  • Interest subvention of 1 percent will be available on housing loans up to Rs.15.00 lakh to individuals for construction/purchase of a new house or extension of an existing house, provided the cost of construction/price of new house/extension does not exceed. Rs.25.00Lakh.
  • All such loans sanctioned, disbursed, during the period of operation of Scheme shall be eligible for the said interest subsidy.
  Interest Subsidy  
  • Subsidy of 1 % will be defined as reduction in interest rate by 100 basis points per annum from the existing rate of interest for a particular amount and tenor.
  • It will be applicable to the first twelve installments of all such loans sanctioned and disbursed during the currency of the Scheme and will be computed for 12 months on the disbursed amount.
  • The subsidy amount will be adjusted in the principal outstanding, irrespective of whether the loan is on fixed or floating rate basis.  
  Terms for loan and subsidy  
  • The interest subsidy of 1 percent per annum will be admissible for the first year on the amount sanctioned and disbursed against eligible housing loans.
  • In case the loan amount is disbursed in instalments, the interest subsidy will be calculated for one year and claimed separately for every instalment of the loan disbursement falling within the operating period of the Scheme.
  • The interest subsidy will be calculated on the interest chargeable at the time of disbursement of the loan.
  N.B. For further details contact the nearest branch of State Bank of Patiala.