Lok Sabha Question No. 1617 (UNSTARRED), answered on 2019-11-28
Subject: Housing Loans under PMAY
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 1617 TO BE ANSWERED ON NOVEMBER 28, 2019 HOUSING LOANS UNDER PMAY

Will  the  Minister  of  HOUSING  AND  URBAN  AFFAIRS  be  pleased  to

- NO.  1617. SHRI RAVNEET SINGH BITTU: state:
- (a) the details and the number  of housing loans that  have  been sanctioned  during  the  last  3  years  under  the  Pradhan  Mantri  Awas Yojana (PMAY);
- (b) whether the target is to cater to the demand of housing shortage of nearly 1.2 crore and make housing available to all by 2022, if so, the details thereof;
- (c) the  details  of  the  existing  structure  of  interest  subsidy  scheme  on home loans in the country;
- (d) the funds allocated and the amount of interest recovered under the interest subsidy scheme during the last three years;
- (e) whether  the  cooperative  banks  play  an  important  role  in  granting home  loans  and  if  so,  the  details  thereof  and  the  share  of  the cooperative banks in the housing industry; and
- (f) the steps taken by the Government to make the rates of interest on home loans affordable?

## ANSWER

## THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

- (a) A total of 5,62,115 housing loans involving central assistance of Rs.12,617.72  crore  have  been  sanctioned  under  CLSS  component  of PMAY(U) during last three years.

- (b) Under the Pradhan Mantri Awas Yojana (Urban) [PMAY(U)], against an assessed  demand  of  around  1.12  Crore  houses  in  urban  areas  of  the States/UTs, 93.00 lakh houses have so far been sanctioned, of which 28.06 lakh houses have been completed.
- (c) Under Credit Linked Subsidy Scheme (CLSS) for EWS/LIG component of Pradhan Mantri Awas Yojan (Urban) {PMAY[U]}, beneficiaries of Economically Weaker Section (EWS) having household annual income upto Rs.3,00,000/- and Low Income Group (LIG) having household annual income between  Rs.3,00,001/-  and  upto  Rs.  6,00,000/-  subject  to  their  being otherwise eligible, can avail of an interest subsidy at the rate of 6.5% on the housing loans up to Rs.6.00 lakh for a maximum tenure of 20 years, for acquisition / construction (including re-purchase) and extension of house.

Government of India has also launched a Credit Linked Subsidy Scheme to provide interest subsidy for housing loans to eligible beneficiaries belonging to Middle Income Group (CLSS for MIG). The Scheme covers two income  segments  in  the  MIG  viz.  annual  household  income  between Rs.6,00,001 to Rs.12,00,000 (MIG-I) and annual household income between Rs.12,00,001  to  Rs.18,00,000  (MIG-II).  The  interest  subsidy  under  the scheme is available to beneficiaries of MIG-I and MIG-II categories for loan amounts upto Rs.9,00,000/- and Rs.12,00,000/, respectively for acquisition / constructions  of  houses  (including  re-purchase).  The  interest  subsidy  is provided at the rate of 4% and 3%, respectively.

- (d) Year wise details of funds allocated and released  under  CLSS component  of  PMAY(U)  during  last  3  years  are  annexed.  The  interest subsidy under CLSS is released by the Government upfront and EMIs are reduced  accordingly.  The  recovery  of  interest  on  the  loan  amounts extended  by  Primary  Lending  Institutions  (PLIs)  is  done  by  them  as  per their loan agreement.
- (e) A total of 9,333 housing loans involving central assistance of Rs.212.27 crore  have  been  sanctioned  under  CLSS  component  of  PMAY(U)  through Cooperative  Banks  which  is  approximately  1.15%  of  the  total  amount sanctioned under CLSS component of PMAY(U).
- (f)  The  Government  is  providing  interest  subsidy  to  EWS/LIG,  MIG-I  and MIG-II categories under CLSS component of PMAY(U) to make home loans affordable.

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## Amount Allocated and Released under CLSS component of PMAY (U) during last 3 years

| Financial Year   |   Budget Allocated |   Extra Budgetary Resources |   Total Amount Released by the Ministry to CNAs |
|------------------|--------------------|-----------------------------|-------------------------------------------------|
| 2016-17          |                475 |                           0 |                                             475 |
| 2017-18          |               1800 |                         635 |                                            2435 |
| 2018-19          |               1900 |                        8770 |                                           10670 |
| Total            |               4175 |                        9405 |                                           13580 |