New Delhi : Government on Wednesday gave its approval for the launch of the ‘Housing for All by 2022’ scheme paving the way for affordable homes to the urban poor and slum dwellers at low interest rates. The Union Cabinet 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 belonging to economic weaker section (EWS) including slum-dwellers and low income groups (LIGs).

The Cabinet’s decision will benefit the urban poor by an amount of nearly Rs 2.30 lakh each and as a result the monthly EMI will come down by nearly Rs 2,852 per month. NDA’s flagship scheme will be formally launched on June 25 when the government will bring out guidelines for its implementation. According to a senior Housing and Urban Poverty Department Alleviation official, 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, benefiting the urban poor by Rs 2,582 per month, he said.

On the whole, central assistance in the range of Rs 1 lakh to Rs 2.30 lakh per beneficiary would be provided under different components of the National Urban Housing Mission in urban areas to build 2 crore new houses to meet the housing shortage, over the next 7 years. As per the earlier approval of the Union Cabinet, there are four components to the National Urban Housing Mission.        —PTI

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Industry hails it as a milestone

New Delhi: Hailing the Cabinet’s decision of launching ‘Housing for All by 2022’ mission for providing affordable homes to the urban poor at low interest rates, the real estate industry terms the decision as a ‘milestone’.  “This is a welcome step taken by the Union Government. This decision will work as a milestone in Indian housing sector. Every stakeholder of the industry would get benefited by this step,” Industry body CREDAI NCR president Manoj Gaur said in a statement. Gaur added that subsidy for beneficiary-led individual house construction, promotion of affordable housing for weaker section through credit linked subsidy, all these steps will be a boon for affordable and weaker section of the society.  Assocham secretary general D S Rawat said: “The scheme of Housing for All by 2022, if well implemented, will be a win-win not only for the under privileged but also for revival of India’s economic growth.”  —PTI

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