The Indian government is planning to launch a new housing subsidy scheme for low-income homebuyers in urban areas, according to a Reuters report. The scheme is expected to benefit around 25 lakh home loan applicants and cost around Rs 60,000 crore over the next five years.
Prime Minister Narendra Modi announced the new scheme during his Independence Day speech in 2023. He said that the scheme would help families living in rented houses, slums, chawls, and unauthorized colonies to buy their own homes.
Details of the scheme are still being finalized, but according to Reuters, it may offer an annual interest subsidy of 3-6.5% on up to Rs 9 lakh of the loan amount for home loans below Rs 50 lakh availed for a tenure of 20 years.
The interest subsidy is likely to be credited to the home loan account of beneficiaries. The scheme is expected to be approved by the Union Cabinet soon. In simpler terms, the government is planning to give a subsidy of up to Rs 9 lakh to low-income homebuyers in urban areas. This will make it easier for them to buy their own homes.