PM Modi Announces New Scheme for Lower Interest Rate Home Loans

In his 2023 Independence Day address, Prime Minister Narendra Modi unveiled a new initiative aimed at making homeownership more accessible for those living in rented accommodations within urban areas. The Prime Minister acknowledged the challenges faced by vulnerable urban populations and the aspirations of middle-class families to own their homes. “We recognize the struggles faced by the weaker sections residing in our cities.

The middle-class families aspire to have their own homes. In the coming years, we are introducing a novel scheme that will particularly benefit families residing in urban rented houses, slums, chawls, and unauthorized colonies,” Prime Minister Modi announced. He elaborated, “For those who wish to build their own homes, we intend to provide assistance through reduced interest rates on loans from banks. This support will translate into significant savings amounting to lakhs of rupees.”

Furthermore, Prime Minister Modi highlighted the potential revision of the income tax threshold for middle-class families. Proposing an increase from Rs 2 lakh to Rs 7 lakh, he emphasized the advantages this modification would bring to salaried individuals and the broader middle-class segment. The Prime Minister also noted the remarkable transformation of India’s internet landscape, which transitioned from being expensive before 2014 to now offering the world’s most affordable internet data.

This change has resulted in considerable financial relief for households across the country. The specifics of the forthcoming scheme are anticipated to be disclosed by the Government shortly. Commenting on this development, Pradeep Aggarwal, the Founder & Chairman of Signature Global (India) Ltd, commended the Prime Minister’s announcement. Aggarwal noted that the initiative to alleviate home loan interest is commendable and is expected to empower lower and middle-income individuals to realize their homeownership dreams.

The initiative is poised to particularly benefit the affordable and mid-range housing segments. Prime Minister Modi also articulated the Government’s objective to establish a significant base of 2 crore Lakhpati Didis (prosperous women) through the promotion of women self-help groups. The Prime Minister expressed the commitment to empower women and underscored the pivotal role of women-led development.

“As we harness the potential of our women power, our focus is firmly on fostering women-led progress,” Prime Minister Modi affirmed. “Presently, 10 crore women are engaged in women self-help groups. These groups encompass figures such as bank didis, Anganwadi didis facilitating vital services, and didis contributing to healthcare distribution. Looking ahead, my aspiration is to see 2 crore Lakhpati Didis emerge across our villages,” he added.