More than half lakh borrowers benefited by flagship scheme
MUMBAI: HDFC Ltd, India’s premier housing finance company, has become the first financial institution in the country to disburse subsidy to over 51,000 customers amounting to over Rs1,100 crore under Credit Linked Subsidy Scheme (CLSS) -the flagship scheme of Government of India’s Pradhan Mantri Awas Yojana (PMAY), according to an official statement from the corporation.
HDFC has provided loans of over Rs9,800 crore under PMAY-CLSS, to these customers belonging to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) category.
The corporation said HDFC, in line with its vision for providing affordable housing to all, has been partnering with the government wholeheartedly to take the scheme, ‘Pradhan Mantri Awas Yojana’ to the real beneficiaries i.e. EWS, LIG and MIG category.
It has added that the Ministry of Housing & Urban Affairs and National Housing Bank (NHB) have provided immense support to HDFC to popularize and propagate the CLSS. Commenting on this occasion, Ms Renu Sud Karnad, Managing Director, HDFC Ltd said, “The government has laid extraordinary focus on affordable housing with the launch of PMAY. Given the excellent response to the scheme, government has improved the scheme from time to time. This has renewed the interest of homebuyers in the Indian real estate sector and allowed first-time home buyers to avail these benefits to own a house. This has been possible only because of Prime Minister’s vision of providing ‘Housing-For-All’ by 2022 and his unstinted focus by providing special incentives not only to economically weaker section and lower income groups but also to large middle income group.”
HDFC Ltd, during the quarter ended September 30, 2018, approved 37 per cent of home loans in volume terms and 18 per cent in value terms to customers from the EWS and LIG segment. HDFC Ltd on an average has been approving 8,300 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at approximately Rs1,354 crore.
The average home loan to the EWS and LIG segment stood at Rs10.1 lakh and Rs17.6 lakh respectively. Credit Linked Subsidy Scheme (CLSS) was introduced in June 2015 under Pradhan Mantri Awas Yojana (PMAY) for home loans to customers from the Economically Weaker Section (EWS), Low Income Group (LIG) and was extended to Middle Income Group (MIG) from Jan -2017.
As per the scheme, eligible borrowers are entitled for interest subsidy of 6.5 per cent per annum for loans up to Rs6 lakh for EWS and LIG category (annual household income up to Rs 6lakh), interest subsidy of per cent and 3 per cent for loans up to Rs9lakh and Rs12 lakh respectively for MIG category (annual household income between Rs6lakh and Rs18 lakh for a maximum tenure of 20 years.