The loans have been disbursed under the Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme
Housing finance company HDFC has disbursed Rs 4,700 crore in subsidy to over 2 lakh first-time homebuyers under the Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS), the company said in a statement.
This is the flagship housing scheme of the government.
Under the CLSS scheme, Rs 47,000 crore worth of loans have been offered to homebuyers belonging to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Groups (MIG).
The corporation has been partnering and supporting the Ministry of Housing and Urban Affairs and the National Housing Bank to work towards the government’s goal of ‘Affordable Housing for All’.
“The government’s PMAY scheme has been successfully assisting home buyers belonging to different income groups since 2015. The scheme is in line with our overall philosophy that every Indian must have a home of their own. We thank the Ministry of Housing and Urban Affairs and the National Housing Bank for their commitment and for being receptive to inputs and suggestions from various stakeholders. This proactive approach has enabled effective and seamless implementation of the scheme,” said Renu Sud Karnad, Managing Director, HDFC Ltd said.
Due to the Covid-19 crisis, a number of sectors including the real estate sector have been affected. Having said that we feel that the demand for housing will pick up gradually as the economy emerges out of this difficult period and confidence in the economy is restored, she said.
The Credit Linked Subsidy Scheme (CLSS) was introduced in June 2015 under the Pradhan Mantri Awas Yojana (PMAY) for home loans to customers from the Economically Weaker Section (EWS), Low Income Group (LIG) and was extended to the Middle Income Groups (MIG) from January 2017.
As per the scheme, borrowers are eligible for interest subsidy of 6.5 percent per annum for loans up to Rs 6,00,000 for EWS and LIG category(annual household income up to Rs 6,00,000), interest subsidy of 4 percent for loan up to Rs 9,00,000 for MIG 1 category (annual household income between Rs 6,00,001 and Rs 12,00,000) and interest subsidy of 3 percent for loans up to Rs 12,00,000 for MIG 2 category (annual household income between Rs 12,00,001 & Rs 18,00,000) for a maximum tenure of 20 years.
The effective subsidy to the customer is in the range of Rs 2.30 - 2.67 lakhs on a 20-year term, receivable upfront. The schemes for MIG categories have been extended till March 31, 2021, and schemes for EWS/LIG are valid up to March 31, 2022.