Economically Weaker Section gets 5% Interest Subsidy for housing
By Accommodation Times Bureau
New Delhi: The Minister for Housing and Urban Poverty Alleviation Kumari Selja has said that the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) was launched with a view to provide interest subsidy @ 5% to Economically Weaker Section (EWS) and Low Income Group (LIG) beneficiaries on availing housing loans upto Rs. 1.0 lakh from the Banks / Housing Finance Companies (HFCs). This was launched as a demand driven pilot scheme.
In a written reply in the Lok Sabha today she said, cumulatively, as on 31/03/2012, 10,215 beneficiaries have been covered under the Scheme and a total Net Present Value (NPV) of interest subsidy of Rs. 9.2 crore has been released. As on date, no one from Bihar has availed benefit under the scheme. The details of the State-wise and year-wise progress under the scheme is enclosed as Annexure.
She said, an Advisory Committee comprising of the representatives of State Governments and Banks/Financial Institutions was constituted to review the existing scheme of ISHUP, analyse the causes for its slow off- take and suggest practical modifications to make the scheme widely acceptable with the ultimate objective of channelizing flow of credit to the EWS and LIG beneficiaries. This Ministry intends to revamp the scheme, but since it is at the conceptualization stage no time frame can be assigned for the same.
The scheme extends to all cities covered under RAY and rental housing units as well as dormitories for new migrants are also permissible under the scheme. Under AHP, after it has been dovetailed with RAY, 8 projects have been sanctioned with a central assistance of Rs. 2.22 Crore for construction of 5776 Affordable dwelling units.
Credit Risk Guarantee Fund:
The Minister for Housing and Urban Poverty Alleviation said that, “the Government has approved the establishment of a Credit Risk Guarantee Fund Trust (CRGFT) for low income housing. The CRGF Trust will administer and operate the Credit Risk Guarantee Fund Scheme (CRGF Scheme). The CRGF scheme will provide guarantee to the lending agencies for housing loans extended by them to persons belonging to the Economically Weaker Sections / Low Income Housing Groups upto Rs. 5 Lakh, without any third party guarantee or collateral security.”
The Credit Risk Guarantee Fund Scheme with current allocations is expected to catalyse a flow of credit of about Rs. 20,000 crores to the low income housing sector and create the enabling environment for large scale construction of affordable housing stock. The Credit Risk Guarantee Fund Trust has been registered on 1st May, 2012, Kumari Selja said.