It is not interest free?! posted bySalih (Chennai)[03 February 2011] IP: 122.*.*.* India | Comment Reference Number: 2515
Pamphlet doesnt talk about the scheme's name. I think it is referring to central government's INTEREST SUBSIDY FOR HOUSING THE URBAN POOR
(ISHUP)scheme announced in 2008.
It is not interest free. For upto 5%, government pays the interest as subsidy. Balance interest with principal, as fixed by the lending bank, must be paid by the borrower in EMIs- over a period ranging from 15 to 20 years.
Any borrowing beyond the limit of 1 lakh will not be given interest subsidy. Borrower has to pay the full interest on that.
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