Government to launch a new scheme for home loan in urban areas to build their own homes: PM Modi

Prime Minister Narendra Modi said the government would launch a new scheme to help those living in rented houses in cities to build their own homes. In his Independence Day speech from the ramparts of the Red Fort, PM Modi said: “The weaker sections living in the cities face a lot of problems. Middle-class families are dreaming of buying their own houses. We are coming up with a new scheme in the coming years that will benefit those families that live in cities but are living in rented houses, slums, chawls, and unauthorised colonies. If they want to build their own houses, we will assist them with relief in interest rates and loans from banks that will help them save lakhs of rupees.”

A Union Housing and Urban Affairs Ministry spokesperson did not respond to requests. The Ministry is implementing the Pradhan Mantri Awas Yojana (Urban), which was

launched in 2015. Three of the four verticals of the scheme beneficiary-led construction, affordable housing in partnership, and in-situ slum redevelopment have been extended till December 31, 2024. The fourth vertical credit-linked subsidy scheme in which beneficiaries were given an interest subsidy on home loans was not extended beyond March 31, 2022.

As of Monday, the PMAY-U portal of the Ministry showed 1.18 crore houses had been sanctioned and 76.25 lakh of them completed. Of the expenditure of Rs 1.42 lakh crore so far, Rs 58,868 crore was for the interest subsidy under CLSS, with the majority of the amount (Rs 45,984 crore) being for Economically Weaker Section (EWS) and Low Income Group houses