New Scheme for promotion of Rural Housing

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  • The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved a new scheme for promotion of Rural Housing in the country.
  • The Government would provide interest subsidy under the scheme. Interest subsidy would be available to every rural household who is not covered under the Pradhan Mantri Aawas Yojana (Grameen), PMAY(G).
  • The scheme would enable people in rural areas to construct new houses or add to their existing pucca houses to improve their dwelling units.
  • The beneficiary who takes a loan under the scheme would be provided interest subsidy for loan amount upto Rs. 2 Lakhs.
  • National Housing Bank would implement the scheme.
  • The Government would provide net present value of the interest subsidy of 3 percent to the National Housing Bank upfront which will, in turn, pass it to the Primary Lending Institutions (Scheduled Commercial Banks, NBFCs etc.).
  • As a result the equated monthly installment (EMI) for the beneficiary would be reduced.
  • Under the scheme, the Government would also take necessary steps for proper convergence with PMAY-G including technical support to beneficiary through existing arrangements.
  • The new scheme is expected to improve housing stock in the rural areas, as well as create employment opportunities in rural housing sector.

Source:PIB