Those not covered under the Pradhan Mantri Aawas Yojana (Grameen) can look towards a new scheme approved by the Union Cabinet on Tuesday.
Aimed at promoting rural housing in the country, the Government would provide interest subsidy to every rural household under the new scheme which would run vertical to the PMAYG.
Officials in the Union Rural Development Ministry said that the scheme would enable people in rural areas to construct new houses or add to their existing pucca houses to improve their dwelling units. The beneficiary who takes a loan under the scheme would be provided interest subsidy for loan amount upto Rs 2 lakhs under the new scheme which is yet to be named.
The National Housing Bank would implement the scheme. The Government would provide net present value of the interest subsidy of 3 percent to the National Housing Bank upfront which will, in turn, pass it to the Primary lending Institutions (Scheduled Commercial Banks, NBFCs etc.). As a result the equated monthly installment (EMI) for the beneficiary would be reduced, the official added.