Realtors’ body NAREDCO on Tuesday hailed the Government’s decision to provide interest subsidy under the Pradhan Mantri Awaas Yojana, saying the move will help in accomplishing the vision of ‘Housing for All’ by 2022. However, the association said that loans from banks should be available easily for people in the unorganised sector.
To boost rural and urban housing post demonetisation, Prime Minister Narendra Modi announced interest subsidy of up to 4 per cent on loans taken in the new year under the Pradhan Mantri Awaas Yojana. Announcing a slew of measures, Modi in his national address on New Year’s eve also said 33 per cent more homes will be built for the poor under this scheme in rural areas.
“NAREDCO welcomes the Government’s move to create two additional categories under Pradhan Mantri Awaas Yojana (PMAY-Urban) for interest subvention,” its President Parveen Jain said in a statement. Under this, home loans up to Rs 9 lakh taken in 2017, will receive interest subvention of 4 per cent and home loans up to Rs 12 lakh will receive interest subvention of 3 per cent. The announcement of another new scheme for neo-middle class in rural areas which provides an interest subvention of 3 per cent on loans up to Rs 2 lakh taken in 2017, for construction of new houses, or extension of old houses is also welcomed, NAREDCO said.
“Rural housing construction under PMAY has got momentum but urban housing is still struggling because of complexities of land acquisition, lack of infrastructure and non-availability and affordability of housing finance from recognised banking channel. Government announcement of interest subvention on home loans up to Rs 12 lacs will be of great relief to lIG and neo middle class,” Jain said.