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HDFC Ltd has disbursed subsidy to over 51,000 customers amounting to over ₹1,100 crore under the Pradhan Mantri Awas Yojana’s (PMAY) Credit Linked Subsidy Scheme (CLSS).
India’s largest standalone housing finance company, in a statement, said it has provided loans of over ₹9,800 crore under PMAY-CLSS to customers belonging to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) category.
Renu Sud Karnad, Managing Director, HDFC Ltd said, “The government has laid extraordinary focus on affordable housing with the launch of PMAY. Given the excellent response to the scheme, the government has improved the scheme from time to time. This has renewed the interest of homebuyers in the Indian real estate sector and allowed first-time home buyers to avail these benefits to own a house.”
During the quarter ended September 30, 2018, HDFC approved 37 per cent of home loans in volume terms and 18 per cent in value terms to customers from the EWS and LIG segment. “HDFC Ltd on an average has been approving 8,300 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at approximately ₹1,354 crore. The average home loan to the EWS and LIG segment stood at ₹10.1 lakh and ₹17.6 lakh respectively,” the company said.
CLSS was introduced in June 2015 under PMAY for home loans to customers from EWS, LIG and was extended to MIG from January 2017.
As per the scheme, eligible borrowers are eligible for interest subsidy of 6.5 per cent pa for loans up to ₹6,00,000 for EWS and LIG category (annual household income up to ₹6 lakh), interest subsidy of 4 per cent and 3 per cent for loans up to ₹9 lakh and ₹12 lakh respectively for MIG category (annual household income between ₹6,00,001 & ₹18 lakh) for a maximum tenure of 20 years. The effective subsidy to a customer is in the range of ₹2.30-2.67 lakhs on a 20 year term receivable upfront.
The schemes for MIG are valid up to March-end 2019 and schemes for EWS/LIG are valid up to March-end 2022.
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