HDFC sanctions real estate loans of 47K cr to more than 2 lakhs from buyers under the government’s CLSS
NEW DELHI : Housing finance company HDFC Ltd announced on Sunday that it had approved home loans of more than ??47,000 crore to over 2 lakh first-time home buyers under the government’s Credit Linked Subsidy Program (CLSS).
HDFC stated that it passed on an interest subsidy of more than ??4,700 crore to these beneficiaries.
In a statement, HDFC said it has approved more than ??47,000 crore of home loans under CLSS to over 2 lakhs from buyers belonging to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Groups (MIG).
“PMAY grant amounting to more than ??4,700 crore went to those 2,000,000 home buyers, becoming the only financial institution in the country to achieve this feat, ”said HDFC.
The company said it had partnered with and supported the Ministry of Housing and Urban Affairs and the National Housing Bank (NHB) to achieve the government’s goal of “affordable housing for all”.
“The government’s PMAY program has been successfully helping home buyers from different income groups since 2015. The program is in line with our overall philosophy that every Indian should have their own home,” said the Managing Director of HDFC Ltd, Renu Sud Karnad.
Complementing the Department of Housing and the NHB to be receptive to suggestions from various stakeholders, she said this proactive approach has enabled the program to be implemented efficiently and transparently.
“Due to the COVID-19 crisis, a number of sectors, including the real estate sector, have been affected. Having said that, we believe that the demand for housing will gradually increase as the economy emerges from foreclosure and confidence in the economy is restored, ”Karnad said.
She noted that structural housing demand for India would always remain strong.
“The huge concessions under PMAY, the tax breaks on home loans, the lowest interest rates on record, and the time and price corrected real estate prices, affordability doesn’t has never been so good.
“In addition, with the increasing trend of working from home, the demand for housing will only increase in the future,” she said.
HDFC said it has made efforts to educate clients about the benefits of CLSS by hosting seminars, presentations, and counseling sessions.
He also engaged extensively with developers and channel partners to reach more eligible recipients.
The Credit Linked Subsidy Scheme (CLSS) was introduced in June 2015 under the Pradhan Mantri Awas Yojana (PMAY) for mortgage loans to clients of the EWS and LIG sections. It was extended to MIG from January 2017.
Under the scheme, borrowers are eligible for an interest subsidy of 6.5 percent per annum for loans up to ??6 lakh for the EWS and LIG category (annual household income up to ??6 lakh).
The scheme provides for an interest subsidy of 4% for loans up to ??9 lakh for MIG 1 category (annual household income between ??6 lakh and ??12 lakh) and interest subsidy of 3% for loans up to ??12 lakh for the MIG 2 category (annual household income between ??12 lakh and ??18 lakh) for a maximum period of 20 years.
The actual subsidy to the customer is of the order of ??2.30-2.67 lakhs over a period of 20 years, to be received in advance.
The MIG category regime has been extended until March 31, 2021, while it is valid until March 31, 2022 for the EWS / LIG category.
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