31/08/2016
Recently Government of India launched a credit linked subsidy scheme under “Pradhan Mantri Awas Yojana”. Credit linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house. Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60 square metres for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area.
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % on the loan amount upto Rs. 6 lakhs, for tenure of 15 years or during tenure of loan whichever is lower.
The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries, through lending institutions. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %. It will reduce effective housing loan and Equated Monthly Instalment (EMI).
Government of India, through this scheme, has been made their effort for its mission housing for all by 2022. But there are some hurdles to be taken care effectively by the GOI to make its mission realty.
1. There should be a large scale marketing of this scheme like ”Pradhan Mantri Jan Dhan Yojana”. Banks should organize campaigns for loan under CLSS. Officer of all banks should make aware about this scheme to all their customers mainly, who belongs to eligible categories.
2. In India there are different types of lands like leasehold, freehold, agriculture, lal dora land , extended lal dora land, land purchased by power of attorney, etc. Lenders of housing loan only accept lands approved by the Development Authorities. Most of the population of urban poor resides on the lands, which are not accepted by the lenders. Therefore GOI should take initiation to regularize the things so that lenders can accept the lands which are mainly occupied by the urban poor.
