Construction Industry News
Prime Minister Narendra Modi announced plans for a scheme to ease interest rates on bank loans for city dwellers who want to own a home. Speaking on the 77th Independence Day, Modi unveiled the upcoming plan, aimed at middle-class families in cities without homes.
Modi acknowledged the struggles of city dwellers without housing and highlighted the difficulties faced by the poor.
"We are introducing a scheme to provide relief in bank loan interest, providing significant financial assistance to families living in rental housing, unauthorised colonies and urban slums. This will allow them to build their own houses," Modi said from the Red Fort.
The existing housing plan, Pradhan Mantri Awas Yojana Urban (PMAY-U), aims to support the urban poor by providing quality housing with essential amenities. Launched on June 25, 2015, the initiative has sanctioned 11.8. Million homes as of July 31, 2023, with 7.6 million units already completed or transferred to beneficiaries.
PMAY-U works through four pathways – beneficiary-led construction, affordable housing in partnership, slum redevelopment in situ and credit-based grant scheme – based on eligibility criteria. The scheme deadline has been extended to 31 December 2024, for completing sanctioned houses without changing funding patterns and implementation methods, with the exception of the credit-related subsidy scheme vertically.
The central government is contributing Rs 0.1 million for the redevelopment of slums in situ and Rs 0.15 million for affordable housing in partnership and beneficiary-led construction. The credit-related subsidy scheme provides for an interest subsidy of 6.5%, which amounts to Rs 0. 267 million per home, for economically weaker groups and low-income groups.
