Government

Lower interest rates under special home loan package failed to attract good response from the customers owing to the uncertainty prevailing in the real estate market. The special home loan scheme for a loan amount up to 20 lakh by several public sector banks has attracted only 28,000 proposals so far. Moreover, the banks offering home loans under the scheme have disbursed Rs. 1,550 crore only.

The special loan scheme was pushed by the government to spur housing demand. Under the scheme, home loans up to Rs 5 lakh is available at 8.5 percent for five years and between 5-20 lakh at 9.25 percent. SBI and Central Bank of India dropped the interest rate further and froze it at 8 percent for a year.