Wednesday, May 27, 2015
Saturday, May 16, 2015
Govt plans higher interest subsidy for economically weaker section in Home Loans
In a move to ensure every household has a roof over their heads by 2022, the housing ministry is likely to increase interest subsidy for flats under economically weaker section (EWS) and low income group (LIG).
Sources said that the proposal has been formulated based on the recommendation of an informal group of ministers, which looked into the 'Housing for All' scheme. The fresh proposal would be placed before the Cabinet for its approval.
TOI has learnt that one of the ministers in the group has even suggested that there should be 0% interest for people falling under the category of economically weaker section. He has also suggested that the cost of such flats should not be more than Rs 5 lakh in any urban area so that people across all sections can own a house.
One of the major components of the ambitious Housing for All scheme is to construct at least two crore affordable housing in urban areas. The cost of such flats is estimated to be around Rs 6.5 and Rs 7.5 lakh. There are also provisions including interest subvention scheme in the housing sector that will meet part of the buyers' home loan burden.
Providing two crore affordable housing is likely to involve investment of about Rs 13 lakh crore in the next seven years.
Sources said that Cabinet clearance of the urban component of Housing for All is crucial. "We cannot start work until the proposal is approved by the Cabinet. We are losing crucial time since we have to meet the target by 2022," said a source.
Source: http://timesofindia.indiatimes.com
Sources said that the proposal has been formulated based on the recommendation of an informal group of ministers, which looked into the 'Housing for All' scheme. The fresh proposal would be placed before the Cabinet for its approval.
TOI has learnt that one of the ministers in the group has even suggested that there should be 0% interest for people falling under the category of economically weaker section. He has also suggested that the cost of such flats should not be more than Rs 5 lakh in any urban area so that people across all sections can own a house.
One of the major components of the ambitious Housing for All scheme is to construct at least two crore affordable housing in urban areas. The cost of such flats is estimated to be around Rs 6.5 and Rs 7.5 lakh. There are also provisions including interest subvention scheme in the housing sector that will meet part of the buyers' home loan burden.
Providing two crore affordable housing is likely to involve investment of about Rs 13 lakh crore in the next seven years.
Sources said that Cabinet clearance of the urban component of Housing for All is crucial. "We cannot start work until the proposal is approved by the Cabinet. We are losing crucial time since we have to meet the target by 2022," said a source.
Source: http://timesofindia.indiatimes.com
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