The government is making all efforts to boost the housing finance sector to ensure that the goal of affordable “Housing for All by 2022” is met. This was stated by Minister of Housing & Urban Poverty Alleviation M. Venkaiah Naidu at the National Summit on “Finance for Housing for All by 2022” organised by ASSOCHAM in New Delhi.
In his address, Naidu said that it is the priority of his ministry to provide access to safe and affordable housing to all countrymen. This is the first step in building strong and healthy communities where individuals and families can prosper, he said. He added that the “Housing for All” mission supports construction of houses upto 30 square meter carpet area with basic civic infrastructure by giving a subsidy on interest rates. He said that the area restriction of 30 square meter has also been relaxed to give flexibility to state governments to plan for good houses.
To encourage private investment for construction of housing for poor, Naidu said that government is giving a number of financial incentives such as service tax exemption on houses up to 60 sq. metres including PPP projects and 100 per cent deduction on profits allowed for affordable housing projects.
The minister informed that to boost demand, beneficiaries of Economically Weaker Section and Low Income Group seeking housing loans from banks, housing finance companies and other such institutions are eligible for an interest subsidy at the rate of 6.5 per cent for 15 years. He added that the credit linked subsidy is given as direct transfer to the loan account of beneficiaries to prevent any leakage.