Only 250 beneficiaries have availed the benefit of the credit-linked subsidy scheme (CLSS) on housing loan for the middle class since January 1 under the Pradhan Mantri Awas Yojna. This was revealed today during a review meeting chaired by Secretary (Housing and Urban Affairs), Durga Shanker Mishra. Under the CLSS, which was made applicable to middle income group (MIG) from January 1 this year, only 250 beneficiaries were given interest subsidy of over Rs five crore, a senior Urban Development Ministry official, who was present in the meeting. Out of the total 21 lakh affordable houses sanctioned under Pradhan Mantri Awas Yojana, Urban (PMAY) so far, 43,166 economically weaker sections (EWS) and lower income group (LIG) beneficiaries have been disbursed interest subsidy of Rs 824 crore. Modi had on December 31 last year announced the credit linked subsidy scheme for middle income groups.
Under the scheme, an interest subsidy of four per cent on housing loans of up to Rs nine lakh for those with an income of Rs 12 lakh per year and of three per cent on housing loans of up to Rs 12 lakh for those having an income of Rs 18 lakh per year was to be given. The loan subsidy ends in December this year for the MIG section. Of the total beneficiaries under CLSS, 75 per cent were serviced by housing finance companies while public sector banks could reach out to only 12 per cent. "The secretary has now asked the National Housing Bank (NHB) and, the Housing and Urban Development Corporation Limited (HUDCO) and public sector banks (PSBs)to more pro- actively promote CLSS and also to ensure that at least two lakh MIG beneficiaries be identified by December this year," said the official, who refused to be quoted as he is not authorised to speak to the media. The officials of the department of financial services also attended the review meet. The secretary also suggested that the RBI may be requested to earmark specific share of priority sector lending for affordable housing. As per the norms, PSBs have to ensure 40 per cent of total lending to priority sector.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)