In order to boost the troubled housing sector, the government today said public sector banks would soon unveil a package for those seeking home loans of up to Rs 20 lakhs and promised measures that would accelerate the "growth trajectory".
"Public sector banks will shortly announce a package for borrowers for home loans in two categories -- for loans of up to Rs 5 lakhs and Rs 5-20 lakhs," an official statement said, a move that signals cheaper credit for buyers for low and middle-class segments.
The government pointed out that there is a large unmet demand for housing in the country, especially for middle and low income groups.
Stating that housing is an important source of employment and generates demand for critical sectors, the Centre said that the housing sector would be kept under a "close watch" and promised that additional measures would be taken, as necessary, to promote an accelerated growth trajectory.
The demand in residential segment has declined in the last six months on account of high interest rates on housing loans and steep rise in property prices during last two to three years, experts said.
The government highlighted the Reserve Bank of India's (RBI) decision to provide refinance facility of Rs 4,000 crore to National Housing Bank.
"In addition, one of the areas where plan expenditure can be increased relatively easily is the Indira Awas Yojna," the statement said.
