If you’ve been dreaming of becoming a homeowner in India, this could be your golden opportunity. The Indian Government, in an attempt to uplift the real estate sector and support potential homeowners, is contemplating an investment of Rs 600 billion ($7.2 billion) in a subsidized home loan initiative specifically designed for small urban housing. This major move is anticipated to span over the next half-decade.
The banking sector is projected to initiate this promising scheme within the next few months. It’s speculated to be rolled out ahead of the imminent key state elections to occur later this year. Here are the anticipated details about the scheme :
1) Interest Subsidy: Beneficiaries can expect an annual interest subsidy ranging between 3% – 6.5% on up to Rs 0.9 million (Rs 9 lakh) of the loan amount.
2) Eligibility: The loans eligible for the subsidy would be capped at Rs 50 lakh, intended for a duration of 20 years.
It’s estimated that this scheme could aid 25 Lakh applicants from low-income groups residing in urban areas. However, the amount of subsidized credit provided will be dictated by the demand for such categories of homes.
This is not an unprecedented move from the Indian Government. A similar initiative ran between 2017-2022, under which 12.30 million homes were sanctioned. The mammoth success of the past scheme elevates hopes for this new investment.