Interest Subsidy Scheme on home loans for MIG extended to March 2019
, ET Bureau|
Sep 22, 2017, 11.59 PM IST
MUMBAI: The central government has extended the validity of interest subsidy benefit of about Rs.2.60 lakh on home loans under Pradhan Mantri Awas Yojana (Urban) for beneficiaries belonging to Middle Income Groups (MIG) by 15 more months beyond earlier stipulated one year period ending December this year.
The government has decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY (Urban), said Durga Shanker Mishra, Secretary (Housing & Urban Affairs), Government of India, while addressing an APREA-NAREDCO summit here.
Prime Minister Narendra Modi, in his new-year eve speech last year had announced the Credit Linked Subsidy Scheme (CLSS) under PMAY(Urban) to MIG, till the end of December this year. Under CLSS, MIG beneficiaries with annual income of above Rs 6 lakhs and up to Rs 12 lakhs would get an interest subsidy of 4% on a 20 year loan component of Rs 9 lakhs. Those with annual income exceeding Rs 12.00 lakhs and up to Rs 18 lakhs would get interest subsidy of 3%.
“We are looking to extend all possible support to overcome the hurdles adversely impacting housing construction so as to meet the target of Housing for All by 2022,” Mishra said while adding that the government would discuss with the issue of using the salt-pan land for developing affordable housing with the state government.
In a conference held last month, Mishra had mentioned that the government is considering a plan to acquire surplus land parcels of public sector enterprises to develop housing projects and townships under the Prime Minister’s affordable housing scheme for weaker sections of the society that aims to achieve Housing for All by 2022.
Reiterating the government’s commitment to meet the Housing for All targets in urban areas by 2022, Mishra urged private investors to invest in affordable housing, being promoted by the government in a big way with several incentives and concessions.
In an hour-long discussion with a 30 member delegation of NAREDCO, Mishra assured them that the government would look into various issues raised by them and possible interventions would be considered.
The delegation referred to what they called anomalies in the Goods & Services Tax rates for completed and under construction housing projects, stamp duties being higher and kept outside the purview of GST, scarcity of land, delays in granting construction permits, lack of coordination among different municipal agencies, RBI’s high risk weightage for lending to real estate sector despite Real Estate Act coming into force, inadequate bank financing despite Non-Performing Assets in respect of construction being much less than other sectors etc.
The delegation expressed concern over GST and other taxes accounting for nearly one third of the cost of residential properties.
Minister of Housing & Urban Affairs Shri Hardeep Singh Puri, who addressed the summit on Thursday had suggested to NAREDCO members to have a detailed discussion with the Secretary (HUA) for resolving the issues so that affordable housing could be given a boost.
The government has decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY (Urban), said Durga Shanker Mishra, Secretary (Housing & Urban Affairs), Government of India, while addressing an APREA-NAREDCO summit here.
Prime Minister Narendra Modi, in his new-year eve speech last year had announced the Credit Linked Subsidy Scheme (CLSS) under PMAY(Urban) to MIG, till the end of December this year. Under CLSS, MIG beneficiaries with annual income of above Rs 6 lakhs and up to Rs 12 lakhs would get an interest subsidy of 4% on a 20 year loan component of Rs 9 lakhs. Those with annual income exceeding Rs 12.00 lakhs and up to Rs 18 lakhs would get interest subsidy of 3%.
“We are looking to extend all possible support to overcome the hurdles adversely impacting housing construction so as to meet the target of Housing for All by 2022,” Mishra said while adding that the government would discuss with the issue of using the salt-pan land for developing affordable housing with the state government.
In a conference held last month, Mishra had mentioned that the government is considering a plan to acquire surplus land parcels of public sector enterprises to develop housing projects and townships under the Prime Minister’s affordable housing scheme for weaker sections of the society that aims to achieve Housing for All by 2022.
Reiterating the government’s commitment to meet the Housing for All targets in urban areas by 2022, Mishra urged private investors to invest in affordable housing, being promoted by the government in a big way with several incentives and concessions.
In an hour-long discussion with a 30 member delegation of NAREDCO, Mishra assured them that the government would look into various issues raised by them and possible interventions would be considered.
The delegation referred to what they called anomalies in the Goods & Services Tax rates for completed and under construction housing projects, stamp duties being higher and kept outside the purview of GST, scarcity of land, delays in granting construction permits, lack of coordination among different municipal agencies, RBI’s high risk weightage for lending to real estate sector despite Real Estate Act coming into force, inadequate bank financing despite Non-Performing Assets in respect of construction being much less than other sectors etc.
The delegation expressed concern over GST and other taxes accounting for nearly one third of the cost of residential properties.
Minister of Housing & Urban Affairs Shri Hardeep Singh Puri, who addressed the summit on Thursday had suggested to NAREDCO members to have a detailed discussion with the Secretary (HUA) for resolving the issues so that affordable housing could be given a boost.
