Housing gets priority
The government planned to bring the entire housing sector under priority-sector lending
Jan 25, 2015
Source : The Hindu
M Venkaiah Naidu

 

Union Minister for Housing, Poverty Alleviation, and Urban Development M. Venkaiah Naidu wants to bring down interest on housing loans considerably, writes K.A. Martin

 

Kerala: The Central government’s focus on housing has found a new dimension in this week’s announcement by Union Minister for Housing, Poverty Alleviation, and Urban Development M. Venkaiah Naidu that the government planned to bring the entire housing sector under priority-sector lending.

 

Mr. Naidu said that he wanted to bring down the interest on housing loans within the seven-to-eight per cent range from the current double-digit rates.

 

The Minister told a meeting in Mumbai on Smart Cities that his ministry had made a pre-Budget representation to the Finance Ministry, requesting softer interest rates for the housing sector.

 

Mr. Naidu said that the government would act urgently as the Prime Minister Narendra Modi would soon convene a meeting of the Finance and Housing secretaries to discuss the modalities of the proposal.

 

The decision on interest rates on home loan assumes significance in the light of the government’s aim of providing housing for all by 2022 and to build 100 Smart Cities, where housing will be a major component.

 

The government is moving ahead quickly with the Smart Cities proposal. A round of meetings of State representatives with the Union Minister is scheduled to begin on January 30.

 

A final concept paper on Smart Cities is expected to emerge at the end of the meetings with the State secretaries from housing sector.

 

A Cabinet note on the project is expected to come up for approval during the ensuing session of Parliament.

 

As per a Reserve Bank of India (RBI) circular of February 2014, priority-sector lending is now confined to housing loans of up to Rs.25 lakh to individuals in metropolitan centres with a population above ten lakh, and Rs.15 lakh in other centres for purchase or construction of dwelling units per family.

 

The other priority sectors are agriculture, small and micro enterprises, education loans of up to Rs.10 lakh to study in India and Rs.20 lakh to study abroad.

 

Setting a priority for some chosen sectors is meant to ensure timely and cheaper credit to them.

 

A final concept paper on Smart Cities is expected to emerge at the end of Union Minister’s meetings with State secretaries from housing sector

Latest Realty News

BMC-demands-Khar-society’s-land-in-7-days,-residents-upset
Jan 24, 2015
MUMBAI: Over 200 families from a housing society in Khar are a worried lot
IIFL-raises-Rs-750-crore-for-second-realty-fund
Jan 24, 2015
MUMBAI: Local financial services firm India Infoline (IIFL) has raised Rs 750 crore for its second real estate fund
New-layout-in-Mysuru-at-Rs-258-crore
Jan 24, 2015
Mysuru: With the Karnataka government giving its green signal, the Mysore Urban Development Authority (MUDA) will undertake development of a new layout that will provide more than 6,000 sites on the outskirts of Mysuru
No-takers-for-Bypass-plot,-real-estate-slump-blamed
Jan 24, 2015
KOLKATA: Has EM Bypass fallen from grace when it comes to demand for real estate projects? At least the current trend hints so
Adarsh-Realty-to-build-Shangri-La-Hotel-for-Rs-600-crore
Jan 24, 2015
MUMBAI: Adarsh Realty and Hotels, hospitality arm of Adarsh Group, will invest around Rs 600 crore to build a Shangri-La branded luxury hotel in Bengaluru
REITs-to-be-'Booster-Rocket'-for-Investments:-JLL-India
Jan 23, 2015
Davos: Real Estate Investment Trusts or REITs will be a "booster rocket" for investments coming into India and realty players are awaiting more clarity on the proposed new instrument
JLL-India-arm-plans-to-raise-Rs-300-crore
Jan 23, 2015
MUMBAI: Property consultancy firm JLL India's investment arm JLL Segregated Funds Group is planning to raise its second real estate fund with a total target size of Rs 300 crore
Bengaluru-most-livable-city-in-India,-followed-by-Mumbai-and-Chennai:-Survey
Jan 23, 2015
NEW DELHI: Bengaluru is the most livable city in the country, followed by Mumbai and Chennai, a survey said
Kolte-Patil-developers-to-invest-over-Rs-3,000-cr-in-13-new-projects
Jan 23, 2015
Pune: Pune-based real estate player Kolte Patil Developers is planning to invest Rs 3,000 to 3,500 crore in 13 new projects in the city
Godrej-in-talks-with-developers-for-lockers-in-realty-projects
Jan 23, 2015
Ahemadabad: After banks and private vault players, Godrej Security Solutions is now looking to tap the real estate industry with its advanced security products

Latest Realty News Of State

Realty Talk's