By Accommodation Times Bureau
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits. The National Housing Bank (NHB) will refinance individual housing loans of about Rs. 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. The Finance Minister Shri Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister.
The rate was not mentioned. In the past, refinancing was very difficult as NHB do not align interest rate with NBFC or housing financiers. The rate at which it is refinancing is much lower hence financier cannot afford to refinance. Though funds are allocated but NHB will not align its interest rates.