Govt targets Rs 60,000-cr for new home loans subsidy
The Union Government is planning to introduce a Rs 60,000 crore new home loan subsidy scheme for homebuyers. Under this scheme, an annual interest subsidy between 3 to 6.5% will be provided on loans up to Rs 9 lakh. The scheme is likely to benefit around 25 lakh home loan applicants in low-income groups residing in urban areas. The scheme would entail spending of around (approx $7.2 billion) over the next 5 years. The new scheme aims to benefit families that are living in cities in rented houses, slums or chawls and unauthorised colonies. This subsidy is likely to be available on home loans below Rs 50 lakh, availed for a period of 20 years. The interest subvention is likely to be credited to the home loan account of beneficiaries. The scheme has already been finalized and is awaiting final approval from the Union Cabinet.