Lok Sabha Question No. 373 (UNSTARRED), answered on 2015-07-22
Subject: Interest Subsidy for Poor
Ministry: HOUSING AND URBAN  POVERTY ALLEVIATION
Asked by: RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE, A. ARUNMOZHITHEVAN, HEENA VIJAYKUMAR GAVIT, DHANANJAY BHIMRAO MAHADIK, YERRAM VENKATA SUBBAREDDY, VIJAYSINH MOHITE PATIL, ANANDRAO  ADSUL, Shrirang Appa Barne, B.V. NAYAK, ASADUDDIN OWAISI, M. UDHAYAKUMAR, T. RADHAKRISHNAN, SHIVAJI ADHALRAO PATIL, RABINDRA KUMAR JENA, DUSHYANT CHAUTALA

GOVERNEMENT OF INDIA

MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION

**LOK SABHA**

**UNSTARRED QUESTION NO.373**

**TO BE ANSWERED ON JULY 22, 2015**

**INTEREST SUBSIDY FOR POOR**

No.373	SHRI SATAV RAJEEV:

SHRIMATI SUPRIYA SULE:

SHRI A. ARUNMOZHITHEVAN:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI Y.V. SUBBA REDDY:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

SHRI B.V. NAIK:

ADV. M. UDHAYAKUMAR:

SHRI T. RADHAKRISHNAN:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI RABINDRA KUMAR JENA:

SHRI DUSHYANT CHAUTALA:

Will the minister of housing and urban poverty alleviation be pleased to state:

1. whether the  Government has decided  to raise interest subsidy for the poor with a view to enabling all people belonging to the economically weaker sections in urban areas to purchase a house under the public sector housing schemes and if so, the details thereof;

1. whether the  Government  is considering to provide an interest subsidy of  6.5 per cent on housing loans availed upto a tenure of 15 years to economically weaker section/lower income group categories and if so, the details thereof;

1. whether  it is a fact that the subsidy pay out on a net present value basis would be about Rs. 2.3 lakh per house for both categories and if so, the details thereof;

Contd..

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(d)	whether the eligibility criteria was decided long back and the cost of construction and GDP has increased manifold and if so, the details thereof; and

(e)	whether the Government is providing sufficient funds for under the scheme and if so, the details thereof and if not, the reasons therefor and further steps taken or being taken by the Government to increase the eligibility criteria and encourage the urban poor to avail the facility to achieve goal of Houses for All?

**ANSWER**

THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION

(SHRI BABUL SUPRIYO)

(a)&(b):  Yes, Madam.   Under the earlier scheme, the interest subsidy was 5% for a loan amount upto Rs. 5.oo lakh. In the Credit Linked Subsidy Scheme (CLSS) of Housing for All (Urban) Mission, interest subsidy of 6.5% is available on housing loans upto Rs. 6.00 lakh for a tenure of 15 years or actual tenure of loan whichever is earlier, for a carpet area of houses upto 30 square metres and 60 square metres for the beneficiaries belonging to Economically Weaker Section (EWS) and Low Income Group (LIG), respectively.

(c):	Yes, Madam.

(d):	No, Madam. Earlier, under RRY Scheme, persons belonging to EWS and LIG having an average income upto Rs. 1.00 lakh and Rs. 2.00 lakh, respectively were eligible for interest subsidy which has been now increased upto Rs. 3.00 lakh and Rs. 6.00 lakh, respectively besides increasing interest subsidy and eligible loan amount.

(e):	Under the Housing for All Mission, funds to the extent of Rs. 4,000 crore has been provided in BE 2015-16.

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