Close on the heels of the prime minister’s new year’s eve address to the nation, where he announced an interest subsidy scheme, the central government on January 24, 2017, has cleared another similar scheme, providing 3% interest subsidy on loans of upto Rs 2 lakhs, for all households which are not covered under the Pradhan Mantri Aawas Yojana (Grameen).
“The government is committed, in its mission to ensure ‘Housing for All by 2022’. The interest subvention will not only reduce the equated monthly instalment (EMI) burden on the poor but will also help them in further construction or expansion of their current homes,” rural development minister, Narendra Singh Tomar said.
It will also create employment opportunities in the rural housing sector, Tomar added.
The interest subsidy would be available to every rural household, which is not covered under the PMAY(G), under which the government aims to construct about 44 lakh houses, the rural development ministry said in an official statement. The scheme would also enable people in rural areas to construct new houses or add to their existing pucca houses to improve their dwelling units.
The National Housing Bank (NHB) would implement the scheme and the government would provide net present value of the interest subsidy of 3% to it. NHB will, in turn, pass it to the primary lending institutions, like scheduled commercial banks, NBFCs and others. Under the scheme, the government would also take necessary steps for proper convergence with PMAY(G), including technical support to the beneficiary through existing arrangements.