Govt moots for low cost housing

Updated: 16/06/2009 11:39 PM IST Top Stories Govt moots for low cost housing Rajat Guha Tuesday, June 16, 2009 (New Delhi) EMail Print BlogComments: Read (0) Post Rate the story Housing for the poor tops the UPA government’s agenda. The Budget may bring cheer to those looking to buy houses costing less than Rs 30 lakh. In order to revive the demand in the real estate sector, the government is considering the need for cheaper loans for buying houses.
Low cost homes could become cheaper still. The country's new Urban Development Minister, Jaipal Reddy, on Tuesday, met Finance Minister Pranab Mukherjee and proposed that low cost housing should be given cheaper loans.
The rate should be at 6.5 per cent for houses priced below Rs 5 lakh and about 7.5 per cent for houses below Rs 20 lakh.
“We have given our wish list to the Finance Minister. We want loans upto Rs 5 lakh at 6.5 per cent and loans upto Rs 20 lakh at 8 per cent, while loans above Rs 30 lakh be at 7.5 per cent,” Reddy said.
Apart from suggesting cheaper housing loans, Reddy also sought more budgetary allocations for projects under the Commonwealth Games and UPA's flagship scheme for urban renewal.
Now, with banks already forced to cut interests, these new proposals will have to wait to hear the final word from the finance ministry, but one thing is clear that the UPA's ‘aam admi’ agenda will put low cost housing right on top priority.