The Tamil Nadu (TN) government has decided to waive a portion of the interest on housing loans for borrowers from housing co-operatives societies. This is measure is to make housing affordable (low cost) for people in the low & middle income group.
To increase the supply of affordable housing for people in the low & middle income category, real estate developers will be allowed to construct larger buildings in a given land area without additional charge.
To increase the supply of housing space in the affordable segment, Mr. O. Paneerselvam, TN Finance Minister said, The government will allow a higher FSI* without charging any premium. So, the cost of house construction will be cheaper for the low & middle income group housing. Also, under the Chennai Mega City Plan, a Rs. 500 crore initiative will be undertaken for the development of basic civic infrastructure such as roads, bridges, storm water drains, sewer network, street lights, parking lots and buildings in the city in 2012-2013"
The Chennai Metropolitan Area is expected to grow into a mega city with a population of above one crore within a decade. The money allocated for this mission would supplement the available funds under various schemes to give fillip to the development of basic amenities in the city. A grid system of roads, streetlights, street furniture, footpaths, parking space & storm-water drains in all eight zones comprising of areas newly added to the Chennai Corporation limits is being developed with funds of the Mega City Development Mission.
Mr. O. Paneerselvam, TN Finance Minister also said, "The TN government was fulfilling its electoral promise by waiving a part of the interest & the full penal interest on housing loans from co-operative housing societies. It will introduce a scheme providing for an interest waiver of 50 to 75 percent for low income group borrowers, 29 to 50% for those in the middle income group and 10 to 25% for borrowers in the high income group. The penal interest will be fully waived for all borrowers"
The interest loss compensation will be Rs. 390 crore to the TN government, and the loss to the co-operatives through the waiver of penal interest will be Rs. 545 crore. Over 1.14 lakh borrowers will be benefited through this scheme, which will be available up to September 30, 2012. The benefit to the co-operative housing societies is that they will be able to collect Rs. 665 crore as over.due loans.
* FSI - Floor Space Index - The ratio of built up space in a given area of land.
To increase the supply of affordable housing for people in the low & middle income category, real estate developers will be allowed to construct larger buildings in a given land area without additional charge.
To increase the supply of housing space in the affordable segment, Mr. O. Paneerselvam, TN Finance Minister said, The government will allow a higher FSI* without charging any premium. So, the cost of house construction will be cheaper for the low & middle income group housing. Also, under the Chennai Mega City Plan, a Rs. 500 crore initiative will be undertaken for the development of basic civic infrastructure such as roads, bridges, storm water drains, sewer network, street lights, parking lots and buildings in the city in 2012-2013"
The Chennai Metropolitan Area is expected to grow into a mega city with a population of above one crore within a decade. The money allocated for this mission would supplement the available funds under various schemes to give fillip to the development of basic amenities in the city. A grid system of roads, streetlights, street furniture, footpaths, parking space & storm-water drains in all eight zones comprising of areas newly added to the Chennai Corporation limits is being developed with funds of the Mega City Development Mission.
Mr. O. Paneerselvam, TN Finance Minister also said, "The TN government was fulfilling its electoral promise by waiving a part of the interest & the full penal interest on housing loans from co-operative housing societies. It will introduce a scheme providing for an interest waiver of 50 to 75 percent for low income group borrowers, 29 to 50% for those in the middle income group and 10 to 25% for borrowers in the high income group. The penal interest will be fully waived for all borrowers"
The interest loss compensation will be Rs. 390 crore to the TN government, and the loss to the co-operatives through the waiver of penal interest will be Rs. 545 crore. Over 1.14 lakh borrowers will be benefited through this scheme, which will be available up to September 30, 2012. The benefit to the co-operative housing societies is that they will be able to collect Rs. 665 crore as over.due loans.
* FSI - Floor Space Index - The ratio of built up space in a given area of land.
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