Lok Sabha Question No. 766 (UNSTARRED), answered on 2015-07-24
Subject: Housing Loan
Ministry: FINANCE
Asked by: RAHUL RAMESH SHEWALE, NAGENDRA KUMAR PRADHAN, VINAYAK BHAURAO RAUT, SHRIKANT EKNATH SHINDE, C.S. PUTTARAJU

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF FINANCIAL SERVICES

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**LOK SABHA**

**UNSTARRED QUESTION NO.766**

**TO BE ANSWERED ON THE 24** **TH** **JULY, 2015/ SHRAVANA 2, 1937 (SAKA)**

**HOUSING LOAN**

**Question**

766.  SHRI RAHUL SHEWALE:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI VINAYAK BHAURAO RAUT:

DR. SHRIKANT EKNATH SHINDE:

SHRI C.S. PUTTA RAJU:

Will the Minister of FINANCE be pleased to state:

(a)    whether the Government  has any proposal to increase the limit of priority sector housing loans from the current limit of Rs.25 lakh to Rs.40 lakh;

(b)    if so, the details thereof;

(c)    whether there is any reduction in share of housing loans by public sector banks (PSBs) and housing finance corporations to low income category and poor middle class;

(d)    if so, the details thereof along with the loan sanctioned to low income and poor middle class during the last three years by the said institutions; and

(e)    the steps taken/being taken by the Government for availing affordable housing loans with interest subsidy for common man?

**Answer**

The Minister of State in the Ministry of Finance

**(SHRI JAYANT SINHA)**

(a)    & (b): There is no proposal to increase the limit of priority sector housing loans to Rs.40 lakh. However, rececently the Reserve Bank of India increased the limit of housing loans under priority sector to individuals from Rs.25 lakh to Rs.28 lakh in metropolitan centres (with population of ten lakh and above) and to Rs.20 lakh in other centres for purchase/ construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at others centres should not exceed Rs.35 lakh and Rs.25 lakh respectively.

(c)&(d): Slab wise outstanding of Public Sector Banks (PSBs).

(Amount in Rs. crore)

| **Year**                 | **2011-12**   | **2012-13**   | **YoY%**  **Change**   | **2013-14**   | **YoY%**  **Change**   |
|--------------------------|---------------|---------------|------------------------|---------------|------------------------|
| Upto Rs.10 lakh          | 109,589       | 112260        | -2%                    | 114659        | -2%                    |
| >Rs.10 and  upto 25 lakh | 101,189       | 119362        | 18%                    | 145694        | 22%                    |
| Above  Rs.25 lakh        | 62,234        | 80359         | 29%                    | 114737        | 43%                    |
| **Total**                | **273,012**   | **311982**    | **14%**                | **375090**    | **20%**                |

As can be seen from the Table, the housing loan outstanding of PSBs has shown an overall increase of 14% and 20% in 2012-13 and 2013-14 respectively over the previous years but the outstanding in slabs upto Rs.10 lakh in 2012-13 and 2013-14 has witnessed a yoy decline of 2% in both years.

Slab wise outstanding of Housing Finance Corporations (HFCs).

(Amount in Rs. crore)

| **Year**                | **2011-12**   | **2012-13**   | **YoY%**  **Change**   | **2013-14**   | **YoY%**  **Change**   |
|-------------------------|---------------|---------------|------------------------|---------------|------------------------|
| Upto Rs.10 lakh         | 47851         | 55301         | 16%                    | 59990         | 8%                     |
| >Rs.10 and upto 25 lakh | 67397         | 87540         | 30%                    | 107803        | 23%                    |
| Above Rs.25 lakh        | 79251         | 106748        | 35%                    | 129673        | 21%                    |
| **Total**               | **194499**    | **249589**    | **28%**                | **297466**    | **19%**                |

As can be seen from the Table, the housing loan outstanding of HFCs has shown an overall increase of 28% and 19% in 2012-13 and 2013-14 respectively over the previous years with a hike of 16% and 8% in slabs upto Rs.10 lakhs respectively in 2012-13 and 2013-14.

(e): The Government of India had introduced an interest subvention scheme in 2009 to provide 1% subvention to all individual housing loans upto Rs.10 lakh provided the cost of the unit does not exceed Rs.20 lakh. In 2012-13, the limit was increased to Rs.15 lakh and Rs.25 lakh respectively. The scheme was closed on 31.03.2013. A sum total of about Rs.861.35 crore has been disbursed under the Scheme.

The Government of India has launched a comprehensive Mission “Housing for All by 2022”. The Mission seeks to address the housing requirement of urban poor including slum dwellers through the following four verticals:

(a)    Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource;

(b)    Promotion of Affordable Housing  for weaker section through credit linked subsidy;

(c)    Affordable Housing in partnership with Public & Private sectors and

(d)    Subsidy for beneficiary-led individual house construction or enhancement.

The Mission with all its components has become effective from the date 17.06.2015 and will be implemented upto 31.03.2022.

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