Housing for All by 2022: On Wednesday, Government gave its approval for the launch of “Housing for All by 2022” Mission under which the government has proposed to build 2 crore houses across the country by 2022. This scheme will cover both slum & affordable housing for weaker sections.
The mission is to provide affordable housing to urban poor, urban homeless, metros, small towns & new migrants to urban area. Union Cabinet has accepted the recommendations of Inter-Ministerial Committee to increase interest subvention to 6.50 percent on housing loans & it would be beneficial for EWS (Economical Weaker Section) & LIG (Lower Income Group).
According to the revised rates of interest, the home loan EMI for the poor may come down by a good amount. For example, at present, housing loans are available at the interest rate of 10.50 percent by which the current EMI on admissible loan of Rs. 6 lakh for 15-years would be Rs 6,632. By this mission, the person will get credit-linked subsidy of 6.50 percent & EMI comes down to Rs 4,050 per month & benefit the urban poor by Rs 2,585 per month.
On the whole, central assistance in the range of Rs 1 lakh to Rs 2.30 lakh per beneficiary would be provided under different components of the National Urban Housing Mission in Urban Area. The central grant of Rs 1 lakh average would be provided to beneficiary under the redevelopment plan of slums with the participation of private developer using land as resource component.
In the second component, Affordable housing through credit-linked subsidy scheme, the central government will provide the subsidy of 6.50% to EWS & LIG on each housing loan.
Under the third component of affordable housing in partnership with private and public sectors, central assistance of Rs 1.50 lakh will be provided to each beneficiary for promoting housing stock for urban poor, provided 35 percent of dwelling units of the projects proposed are earmarked for EWS category.
Under the fourth component, a central assistance of Rs 1.50 lakh would be provided to each eligible urban poor, who can enable him to build his own house or undertake improvement to existing houses.
The “Housing for all by 2022” scheme will be launched on Jun 25 when the government will bring out guidelines for its implementation.