Housing finance major HDFC Ltd on Sunday said under the government’s Credit Related Subsidy Scheme (CLSS), it has authorised home loans of more than Rs 47,000 crore to more than 2 lakh first-time homebuyers. HDFC said it has passed to those beneficiaries interest subsidies of more than Rs 4,700 crore. In a statement, HDFC said it approved Rs 47,000 crore of home loans under CLSS to more than two lakh homebuyers belonging to the Economically Weaker Class (EWS), Low Income Group (LIG), and Middle-Income Groups (MIG).
Subsidy under PMAY above Rs 4,700 crore has been passed on to those 2,00,000 homebuyers, becoming the country’s only financial institution to accomplish this feat, HDFC said. The company said that it has partnered and funded the Ministry of Housing and Urban Affairs and the National Housing Bank (NHB) to work towards the objective of Affordable Housing for All by the government.
Since 2015, the government’s PMAY scheme has successfully supported homebuyers belonging to various income classes. The scheme is consistent with our overarching philosophy that every Indian must have his or her own home. As a complement to the housing ministry and the NHB for being responsive to suggestions from different stakeholders, it was found that the constructive approach has allowed the scheme to be implemented efficiently and seamlessly. Because of the COVID-19 crisis, a variety of industries have been impacted including the real estate market. Having said that, they feel housing demand will gradually pick up as the economy recovers from the lockdown and economic confidence is restored, Renu Sud Karnad said. They noted that the structural demand for housing for India would always remain strong.
It has also actively collaborated with developers and channel partners to reach out to more potential recipients. Under the Pradhan Mantri Awas Yojana (PMAY) the Credit-Related Subsidy Scheme (CLSS) was launched in June 2015 for home loans to EWS and LIG customers. As of January 2017, it had been extended to MIG.
The scheme offers a 4% interest subsidy for loans up to Rs 9 lakh for category MIG 1 (annual household income between Rs 6 lakh and Rs 12 lakh) and a 3% interest subsidy for loans up to Rs 12 lakh for category MIG 2 (annual household income between Rs 12 lakh and Rs 18 lakh) for a maximum 20-year tenure span. Efficient consumer subsidy is receivable upfront in the range of Rs 2.30-2.67 lakhs on a 20-years. The MIG category scheme has been extended until March 31, 2021, while it is valid for the EWS / LIG category until March 31, 2022.
