Government has put up Rs. 3 billion to provide low cost housing loans in a bid to raise the levels of house ownership in the country.
Specialized housing banks like HDFC and the NDB Housing Bank will lend the government funds.rn
rnHousing loans will carry a 10.5 percent annual interest to the end customer.
The scheme, proposed in the budget for 2003, will kick off in January.rn
rnldblquote Initial capital will be provided by the Treasury. This year the government will make available Rs. 3000 million to the fund. This fund will be regulated by the Treasury but implemented through HDFC as its authority and commercial banks,
dblquote explains Finance Minister K.N.Choksy. rnrn