Government to boost Housing Finance sector to meet ‘Housing for All by 2022’
He was speaking at the National Summit on “Finance for Housing for All by 2022” organised by ASSOCHAM in New Delhi.
In his address, Naidu said that it is the priority of his Ministry to provide access to safe and affordable housing to all. This is the first step in building strong and healthy communities where individuals and families can prosper, he said.
He added that the Housing for All Mission supports construction of houses up to 30 square meter carpet area with basic civic infrastructure by giving a subsidy on interest rates. He said that the area restriction of 30 square meter has also been relaxed to give flexibility to state governments to plan for good houses.
To encourage private investment for construction of housing for poor, Naidu said that government is giving a number of financial incentives such as Service Tax Exemption on houses up to 60 sq. metres including PPP projects and 100% deduction on profits allowed for affordable housing projects.
The Minister informed that to boost demand, beneficiaries of economically weaker sections and Low Income Groups seeking housing loans from banks, housing finance companies and other such institutions are eligible for an interest subsidy at the rate of 6.5 per cent for 15 years. He added that the credit linked subsidy is given as direct transfer to the loan account of beneficiaries to prevent any leakage.
Minister of State for Finance and Corporate Affairs, Arjun Ram Meghwal, also attended the function.
Image: twitter.com/MVenkaiahNaidu
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