Finance Minister Nirmala Sitharaman said today that an interest subsidy scheme launched by the government in 2017 to help middle class families in search of affordable housing would be extended till March 2021. The Finance Minister said the extension would provide a boost of Rs 70,000 crore to the housing and construction sectors amid the economic crisis caused by the coronavirus outbreak.
Ms Sitharaman was addressing the media on details of the second tranche of an Rs 20 lakh crore fiscal stimulus package announced by Prime Minister Narendra Modi this week.
Launched as part of the Pradhan Mantri Awas Yojana (PMAY), the credit-linked subsidy scheme (CLSS) was aimed at helping people from economically weaker section (EWS), low income groups (LIG) and middle income groups I and II (MIG-I and MIG-II) by offering interest subsidy on loans taken for the purchase or construction of a house.
Ms Sitharaman said the scheme that was launched three years ago and expired March 31 this year had, so far, benefitted 3.3 lakh middle class families. She said a further 2.5 lakh families would be benefitted by the 12-month extension.
The Finance Minister also said extension of the scheme would stimulate demand for steel, cement, transport and other construction-related materials.
