BANGALORE: Want to build a new house for you and your family? Capital is the problem? RBI puts an end to your worries by putting forward the affordable housing concept to boost demand for infrastructure and housing.

Loans upto 50 lakhs can be issued for the houses up to the value of 65 lakhs in metros while loans upto 40 lakh for the homes valuing 50 lakhs. The approximate calculation 50 basis point drop in interest rate on a 50 lakh loan for 20 years, which in turn will reduce the EMIs to around 1,700 per month. There has been a big shout from the real estate players on this proposal.

Earlier, the home loan borrowers had to pay an interest of 10-11 percent but according to the new norms, the figures are expected to decrease. Surely this beneficiary move from RBI will encourage people to build their own homes at attractive rates. However, this loan scheme is not applied for builders.

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