Repco Home Finance Ltd (RHFL) has signed an agreement with National Housing Bank for implementation of credit-linked subsidy scheme for the middle income group. The scheme will be implemented for one year with effect from January 1, 2017, in all statutory towns as per the Census 2011 and towns notified subsequently by the Centre, according to a company statement.

The scheme divides middle income group into two categories — with annual household income up to ₹12 lakh and ₹18 lakh.The acquisition/construction (including repurchase) scheme is available for houses not exceeding 90 sq m and 110 sq m carpet area with all basic civic infrastructure.

The subsidy will be available for the two brackets for a loan amount of ₹9 lakh and ₹12 lakh at the rate of 4 per cent and 3 per cent per annum, respectively, for a tenure of 20 years. The maximum subsidy amount for an individual beneficiary is ₹2.35 lakh.