The Central Government is working towards making the dreams of people living in slums and rented houses in cities come true. Soon, they will introduce a housing loan subsidy scheme worth Rs. 60,000 crores. This scheme is expected to kick off in a few months, especially in anticipation of Assembly and Lok Sabha elections.
Affordable Loans with Subsidized Interest Rates
Under this scheme, individuals can secure loans of up to Rs. 9 lakhs at a reduced interest rate of 3-6.5% per year. Eligibility for the scheme extends to borrowers seeking less than Rs. 50 lakhs with loan tenures of up to 20 years.
Distinct from Pradhan Mantri Awas Yojana
It’s important to note that this new scheme is separate from the existing Pradhan Mantri Awas Yojana-Urban, which has already approved 1.18 crore houses. The Pradhan Mantri Awas Yojana, initiated on June 22, 2015, aims to provide permanent housing to those living below the poverty line, in makeshift houses, and in slums.
Boosting Homebuyers and Real Estate Sector
This new scheme is expected to benefit both homebuyers and the real estate sector. Financial experts predict that it will help complete numerous projects, create jobs in various sectors, and stimulate economic growth.
Direct Grants to Beneficiaries
One noteworthy feature of the new scheme is that government grants will go directly into the accounts of beneficiaries until 2028. The details of this plan are being finalized and will soon be presented to the Union Cabinet for approval. Approximately 25 lakh people living in urban areas stand to benefit from this initiative. The scheme’s scale will depend on the demand for housing, with no specific targets set for banks at this stage. Meetings between banks and government officials are scheduled to discuss the implementation process, but banks have already started identifying potential beneficiaries.
Prime Minister’s Announcement
Prime Minister Modi mentioned this scheme in his August 15th speech. Additionally, Union Housing and Urban Affairs Minister Hardeep Singh Puri stated that the new home loan subsidy scheme for urban homebuyers would be finalized in September. Prime Minister Modi emphasized that families living in slums, unauthorized colonies, and rented accommodations in cities have aspirations of owning their homes. To support them, the government has decided to provide relief on loan interest and financial assistance amounting to lakhs of rupees.