Shares of five housing finance firms rose by 1.20% to 4.44% at 10:43 IST on BSE after the Union Cabinet yesterday, 17 June 2015, approved an interest subsidy for promoting affordable housing for the poor in urban areas.
LIC Housing Finance (up 4.44%), Dewan Housing Finance Corporation (up 3.58%), GIC Housing Finance (up 3.30%), Indiabulls Housing Finance (up 2.67%) and Housing Development Finance Corporation (HDFC) (up 1.20%), edged higher.
The S&P BSE Sensex was up 241.20 points, or 0.90% at 27,073.86.
Under the National Mission for Urban Housing initiative, the Cabinet approved promotion of affordable housing for weaker section through credit linked subsidy. The Cabinet also approved subsidy for beneficiary-led individual house construction or enhancement. Credit linked subsidy component of the scheme would be implemented across the country in all statutory towns from the very beginning.
Under the credit linked interest subsidy component, interest subsidy of 6.5% on housing loans availed upto a tenure of 15 years will be provided to economically weaker section (EWS) and low income group (LIG) categories, wherein the subsidy pay-out on NPV basis would be about Rs 2.3 lakh per house for both the categories. Central assistance at the rate of Rs 1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. State governments or their para statals like housing boards can take up project of affordable housing to avail the central government grant.
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