Under Housing for All, the Government aims to build 2 crore houses by 2022.
The government allotted Rs 14,000 crore for this scheme.
The cabinet headed by Prime Minister accepted the recommendations of an Inter-Ministerial Committee to approve a substantial increase in interest relief on loan for the urban poor to promote affordable homes. The committee recommended to increase interest subvention to 6.50 per cent on housing loan for economically weaker sections of society.
At present, with the interest rate of 10.50 per cent, current EMI on admissible loan component of Rs 6 lakh, over 15-year loan duration works out to be Rs 6,632 per month. But because of the Cabinet’s decision of credit-linked subsidy to 6.5 percent, EMI comes down to Rs 4,050 per month., benefiting the poor.
There are four components to the National Urban Housing Mission.
1.Redevelopment plan of slums –
Under this with the participation of private developers using land as a resource component, every beneficiary would be provided a central grant ofRs 1 lakh on an average.
2.Affordable housing through credit- linked subsidy scheme-
Under this an interest subsidy of 6.50 per cent on each housing loan to Economic Weaker Section (EWS) and Low Income Groups (LIG) beneficiaries would be provided by the central government.
3.Affordable housing in partnership with private and public sectors-
Under this the central assistance of Rs 1.50 lakh to each beneficiary would be provided to promote housing stock for urban poor with the involvement of private and public sectors, provided 35 per cent of houses of the projects proposed are earmarked for EWS category.
4.Subsidy for individual beneficiary-led construction or enhancement of houses
Under this a central assistance of Rs 1.50 lakh would be provided to each eligible urban poor beneficiary to enable him build his own house or undertake improvements to existing houses.