Mortgage leader Housing Development Finance Corporation (HDFC) on Tuesday said it has disbursed loans worth around Rs 2,800 crore under the Pradhan Mantri Awas Yojana (Urban) to 14,290 borrowers across the country, while the subsidy under the credit-linked subsidy scheme (CLSS) for these has been Rs 302 crore. Out of Rs 2,795 crore, loans worth Rs 1,728 crore have been made to 10,764 customers in the economically weaker section/lower income group (EWS/LIG) category with a subsidy of Rs 228 crore. Loans worth Rs 1,067 crore have been disbursed to 3,526 customers in the middle income group (MIG) category.
For this segment, the subsidy was Rs 74 crore. “The government has laid focus in affordable housing with the launch of PMAY. Policies and programmes developed from time to time supported by budgetary support, have brought in new era of reforms in the affordable housing sector,” managing director of HDFC Renu Sud Karnad said while releasing a special report on the PMAY (U) scheme.
Under CLSS, the government provides interest subsidy up to 6.5% to first-time home buyer with household income up to Rs 1.5 lakh per month.“This has renewed the interest of home buyers in the Indian real estate sector and allowed first time home buyers to avail more benefits,” Karnad said. The CLSS was introduced in June 2015 by the ministry of housing and urban poverty alleviation to enable people from the economically weaker section (EWS) and the low income group (LIG) to buy their own houses.
The ambit of the CLSS was expanded with two modifications in 2017. On December 31, 2016, two new income segments were covered under it. These were households classified as middle income group (MIG)-I, whose annual incomes range between Rs 6 lakh and Rs 12 lakh, and MIG-II, with incomes between Rs 12 lakh and Rs 18 lakh per annum.
MIG-I is eligible for an interest subsidy of 4% for loan amount up to Rs 9 lakh, while MIG-II households will get an interest subsidy of 3% for loan amount of up to Rs 12 lakh. In November 2017, the carpet area ceilings for MIG households were raised, making more people eligible under CLSS.
On December 20, FE had reported that banks have requested the finance ministry to raise the eligibility ceiling for affordable housing loans advanced to borrowers in urban areas so as to increase the pool of homebuyers in this category.