The Union government is considering spending Rs 60,000 crore to offer housing loans at subsidised rates for small and urban housing. This is expected to benefit as many as 2.5 million loan applicants who fall in the low-income group in the urban areas.
According to Reuters, the scheme is expected to be rolled out in the next few months, ahead of the assembly elections in a few states and the general elections next year. Under the scheme, Rs 9 lakh of the entire loan amount will be made available for interest as little as 3 to 6.5 per cent.
Housing loans that are below Rs 50 lakh taken for a tenure of 20 years will be eligible for the subsidy.
“The interest subvention will be credited upfront to the housing loan account of beneficiaries. The scheme proposed till 2028 is close to finalisation and will require approval of federal Cabinet,” Reuters quoted a government source as saying.
Prime Minister Narendra Modi had announced the plan during his Independence Day speech. "We are coming up with a new scheme in the coming years that will benefit those families that live in cities but are living in rented houses, or slums, or chawls and unauthorised colonies,” the PM had then said.