An interest subversion scheme for urban housing is at an advanced stage of consideration as it awaits the cabinet's approval, according to an official with the knowledge of the matter.
The scheme will come before the cabinet and could be announced in less than a month, the official told BQ Prime on the condition of anonymity.
Prime Minister Narendra Modi had announced in his Independence day speech this year that the government would come up with a scheme to provide relief in home loans to the urban lower and middle-class population. "We are bringing a rebate on home loans for slum dwellers and residents of unauthorised colonies in cities," he had said.
Shortly after the PM's announcement, Union Minister for Housing and Urban affairs Hardeep Singh Puri said at a press conference at the end of August that the government was fleshing out the details of the scheme. "Centre will unveil a new interest subvention scheme for urban housing in September," Puri had said.
The new scheme will “benefit families living in cities, but living in rented houses, slums, or chawls and unauthorised colonies. If they want to build their own houses, we will assist them with relief in interest rates and loans from banks that will help them save lakhs of rupees", Modi said on the 77th Independence day.
Experts had told BQ Prime that the new scheme is likely to be on the lines of Pradhan Mantri Awas Yojana (Urban), offering lower interest rates from banks.
Under the Pradhan Mantri Awas Yojana (Urban), over half of the 1.18 crore sanctioned houses have been completed, according to government data. Beneficiary-led construction, affordable housing in partnership, and in-situ slum redevelopment components have been extended till Dec. 31, 2024.
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