Govt’s housing scheme subsidy for middle class extended till March 2019
Last December, PM Modi announced two new components of credit-linked subsidy to help the middle class.
With an eye on the 2019 Lok Sabha election, the Centre on Friday decided to extend interest subsidy of Rs2.60 lakh on home loans for the Middle Income Group (MIG) up to March 2019 under the NDA government’s flagship ‘Housing for All’ programme.
Under the new scheme, those with an annual income of up to Rs12 lakh can avail a 4% interest subsidy on a loan of Rs9 lakh while those with an income up to Rs18 lakh will get an interest subsidy of 3% on a loan of Rs18 lakh.
Last December, Prime Minister Narendra Modi announced two new components of credit-linked subsidy to help the middle class, who till then were not included in the NDA government’s flagship housing programme.
Initially the scheme was available for beneficiaries under the “middle class” category till December 2017 only. The Union finance ministry had allocated Rs1,000 crore under the programme. The ministry intends to target 50,000 people under the scheme in 2017-18.
DS Mishra, Union housing and urban affairs secretary, announced the government’s decision to give interest subsidy benefit to MIG in cities till March 2019. The assistance works out to between Rs1.98 lakh to Rs2.50 lakh per beneficiary. Only those who do not own a ‘pucca’ house will be eligible for the scheme.