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Soft loan package for middle income families

22 February 2018 10:21 pm - 7     - {{hitsCtrl.values.hits}}


The government is introducing a soft loan package titled, ‘Middle Income Housing Loan Scheme’ (MIHLS) with a maximum loan facility of Rs.5 million at a 7% interest rate payable in 25 years as a solution to the housing problems faced by middle income families among public servants and private sector employees.

The NIHLS was a 2018 budget proposal and Cabinet approval was granted to the scheme on Tuesday, Cabinet spokesman and Minister, Gayantha Karunatilaka said.

"The Cabinet Committee on Economic Management held on January 24 with regard to the implementation of the interest subsidy loan scheme through the National Savings Bank (NSB) approved this scheme to support first time home buyers in the middle income category to purchase a house from the middle income housing development projects implemented by the National Housing Development Authority (NHDA) and the Urban Development Authority (UDA)," the minister said.

"The NSB will release a maximum Rs.5 million soft loan with a repayment period of 25 years and at a interest rate of 7% for the first five years. Thereafter, the interest rate will be based on a floating rate on the market rate applicable to housing loans prevailing at the time."

The Minister said the NSB would handle 10,000 loans initially with the General Treasury and the NSB agreeing on an interest subsidy of 5%.

"The General Treasury will pay the interest subsidy to the National Savings Bank for the first five years. The interest subsidy calculations will be done based on the outstanding balances of the loans at the beginning of each month and the subsidy payments will be made on quarterly basis. A budgetary allocation of Rs.500 million has already been allocated for the payment of interest subsidy in 2018. The interest subsidy will be continued until the end of five years," he said.

The minister said the Director General of the Department of Development Finance of the Ministry of Finance and Mass Media would enter into relevant agreements with the NSB to implement this loan scheme. (Sandun A Jayasekera)

  Comments - 7

  • Ceylon Thursday, 22 February 2018 11:37 PM

    When give 5 million to individual who will do it.if can make home for 5 million,build a home and give it.corruption and waste.more than all the stupidness of government.

    PC Friday, 23 February 2018 08:19 AM

    Dont criticize everything this government is doing. If you cannot obtain this loan, just shut up!

    Sam Friday, 23 February 2018 12:20 AM

    Very good. Step 1 complete, people will have access to a 5M housing loan. Now move to step 2, houses that can be purchased for 5M.

    Saman Friday, 23 February 2018 01:52 AM

    First question is any money left in treasurey to back general public tomorrow????.

    nick Friday, 23 February 2018 06:33 AM

    Please dont put the middle class in debt as so many suicides taking place due to financing crisis via DM Android App

    Landlord Friday, 23 February 2018 12:19 PM

    Concessions in the millions for vehicle importers = forecast debt increase. Soft loan for 5 years @ 7% interest = Hardcore loan after 5 years @ floating rate based on market rate.

    Malinda Wickramasinghe Friday, 23 February 2018 06:29 PM

    500 million divide by 5 is for only for 100 people

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