The Economic Times daily newspaper is available online now.

    HDFC disburses over 50,000 PMAY home loans in 6 months including lockdown period

    Synopsis

    In a statement, HDFC said it has approved over Rs 47,000 crore of home loans under CLSS to more than 2 lakh homebuyers belonging to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Groups (MIG).

    HDFC
    MUMBAI: Affordable home loans and loans linked credit subsidy scheme of the government targeted at lower and middle income segments have been growing steadily for HDFC. The country’s biggest mortgage lender has dissbursed more than 50,000 home loans under the government’s Pradhan Mantri Awas Yojana (PMAY) scheme in the past six months, including five months of lockdown period.

    This is half of the 100,000 disbursed in the past one year. In the five months since April, HDFC approved loans worth Rs 38,000 crore indicating that home loan appetite in smaller cities and towns was not badly hurt by the pandemic.

    The government had introduced a credit linked subsidy scheme (CLSS) in June 2015 under the PMAY wherein borrowers are eligible for interest subsidy. The scheme was extended to the middle-income group (MIG) from January 2017.

    In May, as part of the second tranche of economic relief package, the government extended the scheme for MIG until March 2021, while schemes for economically weaker sections (EWS) and low-income group (LIG) are valid up to March 31, 2022.

    “Due to the Covid-19 crisis, a number of sectors including the real estate sector have been affected. We feel the demand for housing will pick up gradually as the economy emerges out of this difficult period and confidence in the economy is restored… The last one-year performance including the rapid near doubling of growth supports this view and is on account of government’s continuous measures to improve the scheme,” said Renu Sud Karnad, managing director, HDFC.

    Karnad said the structural demand for housing in India will always be strong due to factors including improved affordability, government’s thrust on affordable housing, favourable demographics, increasing urbanisation and rising aspirations.

    In the past five years, HDFC has approved more than 47,000 crore of home loans under CLSS to homebuyers in EWS, LIG and MIG.

    Subsidy under PMAY amounting to more than 4,700 crore has been passed on to these 200,000 homebuyers since the government launched the scheme in June 2015.

    Under the scheme, middle income homebuyers with annual income of 6-18 lakh can avail the benefit of subsidised interest on their home loans.

    The scheme is aimed at achieving the government’s objective of ‘Housing for All’.

    According to property sector experts, lowest-ever home loan interest rates and property prices that have witnessed both price and time correction, along with tax benefits on home loans and increase in the trend for working from home, are pushing demand for housing.


    (You can now subscribe to our Economic Times WhatsApp channel)
    ( Originally published on Sep 06, 2020 )
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more
    The Economic Times

    Stories you might be interested in