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New Delhi: As announced by Prime Minister Narendra Modi during his Independence Day Speech last month, the Central government will provide cheaper home loans to those living in rented houses in cities through a new scheme. The new scheme, as per a PTI report quoting an official of the housing ministry, will be launched in September 2023.
“The scheme to provide relief in interest on bank loans for those looking to own houses in cities will be launched in September,” Union Housing and Urban Affairs Ministry Secretary Manoj Joshi said.
In the meantime, Union Minister Hardeep Singh Puri during a press conference said the modalities of the scheme are being worked out and will be launched this month itself.
“We are fleshing out the details of the scheme and then it will be in public. We are almost ready. The scheme will be announced in full detail in September,” Puri said.
PM Modi during his Independence Day speech announced that a new scheme will be launched for middle-class families who live in cities but do not own a house.
“Middle-class families are dreaming of their own house in cities. We will soon launch a scheme for them. We have decided to give relief in bank loan interest by providing a help of lakhs of rupees to families living in rented houses, unauthorised colonies and shanties in cities, to build their own house,” PM Modi had said.
Interestingly, the new scheme will massively benefit the families living in cities in rented houses, slums, or chawls and unauthorized colonies.
“If they want to build their own houses, we will assist them with relief in interest rates and loans from banks that will help them save lakhs of rupees,” PM Modi had said.
Significantly, the new scheme will be launched in line with the credit-linked subsidy scheme (CLSS) for economically weaker sections (EWS) or lower income group (LIG) which ended in March 2022.
As part of the CLSS, the Centre used to provide benefit of up to Rs 2.67 lakh each through an interest subsidy of 3-6.5%.
The Housing Ministry in an update on Thursday said that out of the 11 million houses sanctioned under PMAY(U), 7.6 million have been completed.
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