Under this scheme, home loans will be available at 6.50% for LIG
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New Delhi: The Union Cabinet on Wednesday gave its approval to the ambitious “Housing for All by 2022” scheme under which people from the low-income group can avail loans at a much-reduced rate of 6.50 per cent. After the decision, the Centre launched the “Housing for All by 2022” mission to give a major boost to affordable homes for the urban poor and low-income groups.
The Cabinet, at a meeting chaired by Prime Minister Narendra Modi, accepted the recommendations of an inter-ministerial committee to increase interest subvention to 6.50 per cent on housing loans to beneficiaries of the economically weaker sections, including slum dwellers, and low-income groups. The urban poor will thus benefit by around Rs 2.30 lakh each, and their EMI will be reduced by Rs 2,852 per month.
“At present, with the interest rate of 10.50 per cent, current EMI on admissible loan component of Rs 6 lakh, over 15-year loan duration works out to be Rs 6,632 per month. With Cabinet deciding on credit-linked subsidy to 6.50 per cent, EMI comes down to Rs 4,050 per month, thus giving a benefit of Rs 2,582 per month to the urban poor,” said a senior official.
As part of the National Urban Housing Mission in urban areas, the government would seek to provide Central assistance in the range of Rs 1 lakh to Rs 2.30 lakh per beneficiary under different components to build 2 crore new houses to meet the housing shortage, over the next 7 years. There are four components to the National Urban Housing Mission.
As for the redevelopment plan of slums with the participation of private developers using land as a resource component, the Central grant would be Rs 1 lakh on an average per beneficiary, while states/Union Territories are at liberty to use this grant for any slum redevelopment schemes to be taken up to make such projects viable, if required, added the official.
Additionally for affordable housing through credit-linked subsidy scheme, an interest subsidy of 6.50 per cent on each housing loan to EWS and LIG beneficiaries would be provided by the central government.
Under third component of affordable housing in partnership with private and public sectors, central assistance of Rs 1.50 lakh to each beneficiary would be provided to promote housing stock for urban poor with the involvement of private and public sectors, provided 35 per cent of dwelling units of the projects proposed are earmarked for EWS category.
( Source : deccan chronicle )
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