Government to Launch Interest Subsidy Scheme on Home Loans for Urban Poor This Month

Government to Launch Interest Subsidy Scheme on Home Loans for Urban Poor This Month
Source: Freepik

The Indian government is set to launch an interest subsidy scheme for home loans aimed at benefiting the poor and middle-class urban population in September, according to Housing Minister Hardeep Singh Puri. The new scheme is expected to offer increased loan amounts and expand the eligible carpet area for availing financial assistance.

Details to Be Revealed in September

  • Supplementing Existing Schemes: Housing Minister Puri mentioned that the scheme, set to be unveiled in full detail in September, will complement existing initiatives.
  • Advanced Stage Planning: The government is currently finalizing the modalities of the scheme, suggesting it may be similar to the Credit-Linked Subsidy Scheme (CLSS) of the PM Awas Yojna (urban).

Prime Minister’s Independence Day Announcement

  • Relief for Urban Poor and Middle Class: During his Independence Day address, Prime Minister Narendra Modi announced plans for a scheme to provide home loan relief to urban poor and middle-class families living in rented houses, slums, chawls, and unauthorized colonies.

Swift Implementation of Announced Schemes

  • PM Vishwakarma Scheme: Scheduled for launch on September 17.
  • Home Loan Subsidy Scheme: Expected to roll out this month.
  • ‘Lakhpati Didi’ Plan: Likely to be presented for cabinet approval in the coming weeks.

Previous Credit-Linked Subsidy Scheme (CLSS) Under PMAY

  • Interest Subsidy Benefits: The earlier CLSS vertical provided interest subsidy benefits of up to Rs 2.67 lakh, with interest subsidies ranging from 3% to 6.5%, targeting economically weaker sections (EWS), low-income groups (LIGs), and middle-income groups (MIGs).
  • Carpet Area and Loan Limits: The scheme’s carpet area limits and credit-linked subsidy were set at 30 sqm for EWS and 60 sqm for LIG-II, with a 6.5% interest subsidy for loans up to Rs 6 lakh.

Possible Changes Under New Scheme

  • Increased Carpet Area: It is likely that the new scheme will raise carpet area limits.
  • Enhanced Loan Limits: Loan limits may also be increased to provide more substantial relief.

Implementation of Amitabh Kant Committee Recommendations

  • Committee on Stalled Real Estate Projects: Housing Minister Puri has written to chief ministers urging them to implement the recommendations of the Amitabh Kant committee.

Electric Buses in Urban Areas

  • PM-eBus Sewa Scheme: The Ministry of Housing and Urban Affairs has issued guidelines for the operation of 10,000 electric buses under this scheme.
  • Deployment Timeline: The 100 eligible cities are expected to receive buses within the next six months.
  • Preference for Bus-Deficient Cities: Cities with the highest bus deficits will receive priority in central grants if they have operational depots, adequate land for depots, or agreements with power distribution companies for e-bus infrastructure setup.

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