October 4, 2023: The Expenditure Finance Committee (EFC) on October 3, 2023, has approved the ministry of housing and urban affairs’ proposal of rolling out Rs 60,000 crore interest subsidy scheme on home loans for the urban poor.  The scheme will be launched shortly by the centre.
The new scheme is proposed for five years, till 2028, and will offer interest subvention of around 3-6% per annum on home loans upto Rs 50 lakh, mentioned a Reuters report. The interest subvention will be credited directly to the beneficiaries home loan account.
This is in line with PM Modi’s Independence Day speech where he announced plan to help people living in urban slums, chawls, rented house and unauthorised colonies to live in their own permanent houses. It is still not clear whether this scheme will replace the existing Credit Linked Subsidy Scheme (CLSS scheme) under the PMAY-U.
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