In a significant development announced during his Independence Day address last month, New Home Loan Scheme Set to Launch in September. The government initiative that will make home ownership more accessible for those residing in rented accommodations within cities. According to a recent PTI report citing an official from the Ministry of Housing, this groundbreaking scheme is slated for launch in September 2023.
New Home Loan Scheme Set to Launch in September
Union Housing and Urban Affairs Ministry Secretary, Manoj Joshi, affirmed, “The scheme aimed at providing relief in interest rates on bank loans to prospective city homeowners will indeed take off this coming September.”
Fine-Tuning the New Scheme
Meanwhile, Union Minister Hardeep Singh Puri, speaking at a press conference, disclosed that the finer details of the scheme are currently under careful consideration and are expected to be unveiled within this month.
Puri stated, “We are meticulously working out the intricacies of the scheme, and it will soon be available to the public. We are in the final stages of preparation, and a comprehensive announcement detailing the scheme will be made in September.”
A Boost for the Middle Class
Prime Minister Modi, in his Independence Day speech, made a special announcement regarding this initiative, emphasizing its focus on middle-class families residing in urban areas who aspire to own a house.
In the Prime Minister’s words, “Middle-class families in urban centers have long nurtured the dream of owning their own homes. We are on the verge of launching a scheme designed to fulfill their aspirations. We have taken the decision to alleviate the burden of bank loan interest by providing substantial financial assistance to families living in rented accommodations, unauthorized colonies, and shantytowns within cities, helping them realize their dream of homeownership.”
What makes this scheme particularly noteworthy is its potential to significantly benefit families currently residing in rented homes, slums, chawls, and unauthorized colonies in urban areas.
PM Modi added, “For those aspiring to build their own homes, we will extend our support through reduced interest rates and bank loans, resulting in savings amounting to lakhs of rupees.”
A Parallel to the Credit-Linked Subsidy Scheme
Importantly, this forthcoming scheme draws parallels with the credit-linked subsidy scheme (CLSS) for economically weaker sections (EWS) and the lower income group (LIG), which concluded in March 2022. Under CLSS, the government provided benefits of up to Rs 2.67 lakhs each, through an interest subsidy ranging from 3% to 6.5%.
In an update provided by the Housing Ministry on Thursday, it was revealed that out of the 11 million houses sanctioned under the Pradhan Mantri Awas Yojana (Urban), 7.6 million have been successfully completed, indicating the government’s commitment to addressing housing needs for various sections of society.