Affoardable Housing Through
Credit Linked Subsidy
Beneficiaries of EWS and LIG categories seeking housing loans from Banks, Housing Finance Companies and other such institutions
would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure of loan whichever is lower,
for loan amounts up to Rs 6 lakhs. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective
housing loan and Equated Monthly Instalment (EMI). Credit linked subsidy would be available
for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing.