By Accommodation Times News Service
Under the Rajiv Rin Yojana (RRY) the Ministry of Housing & Urban Poverty Alleviation aims to target around million households which will provide subsidized loans to people weaker and economically backward section for buying a house.
According to the revised term a household weaker section will be provided a loan up to Rs.3, 00,000 for buying a house with five percent interest subsidy a year and a repayment period of up to 20 years. Also households with low income group (LIG) will get loans up to Rs. 5, 00,000 and with same terms. A senior official from housing and urban poverty alleviation ministry said, a Cabinet note has been floated on increasing the loan amount in the EWS and LIG category which is under inter ministerial consultation now. Around a million people will benefit from this scheme. This totally depends on the funds received from the government in the budget. The implementation of this plan will also depend on the willingness of banks to lend.
Talking about the RRY earlier it was called Interest Subsidy Scheme for Housing the Urban Poor with a view to provide long term help. Almost 8,734 have been benefited under this scheme. Despite the low response the ministry is hopeful of getting a big response. The announcement in November to raise bar on annual income requires to qualify for benefits under the existing housing schemes.