The Government has taken steps to provide an interest subsidy subject to a maximum of 10% per annum for mortgage advances not exceeding Rs.100,000/- taken by customers on or before 30 June 2024 from licensed banks on an individual basis.
The Cabinet of Ministers approved the proposal presented by the President as the Minister of Finance, Economic Stabilization and National Policy to implement a suitable program for that.
The severe economic crisis in the country in the past has directly and indirectly affected all sectors of the economy.
As a result, pawning of gold has increased rapidly.
The outstanding amount of mortgage advances, which was around 210 billion rupees in 2019, has shown a growth of 172% to around 571 billion rupees by March 2024.
In view of the situation, licensed banks have recognized the need to provide relief to low-income individuals who have obtained mortgage advances.
Accordingly, the government has taken this decision.
