rnOf the Rs. 3 bn in loans the government plans to provide up to Rs. 1 bn through the Housing Development Finance Corporation or HDFC.rn
rnOne and a half billion rupees are expected to be channeled through the commercial banks while Rs. 500 mn will be lent through specialised housing banks.
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rnThe government is expecting to provide Rs. 300 mn in subsidies for loans of up to Rs. 500,000.rn
rnHousing specialists say that banks due to the lack of repayment capacity reject a majority of housing loan applications by lower middleclass earners. rn
rnThe government interest subsidy is expected to change this situation.(LBR)rn