Press briefing of Cabinet Decision taken on 2018-02-20

Implementation of the Middle Income Housing Loan Scheme

- The Budget of 2018 has proposed to provide loan facilities at a subsidized rate of interest to the middle income earning community who purchase a house for the first time from the National Housing Development Projects implemented by the National Housing Authority and the Urban Development Authority.

Accordingly, it is planned to grant loan facilities with a maximum period of re‑payment for 25 years up to Rs.5 million through the National Savings Bank. In this respect, it is proposed to release the loans under a subsidy interest rate of 7 % for the first 5 years. The 5% balance interest to be levied to the bank will be born by the Government. Accordingly, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance and Mass Media, to enter into the relevant agreements with the National Savings Bank, to implement the said loan scheme, was approved by the Cabinet.