HDFC disburses subsidy to over 1 lakh first-time homebuyers under PMAY
Moneylife Digital Team 30 May 2019
HDFC Ltd, India’s premier housing finance company has disbursed subsidy amounting to over Rs2,300 crore benefitting over 1,04,000 families under the government’s flagship housing scheme - Pradhan Mantri Awas Yojana (PMAY).
The corporation has approved Rs22,136 crore of home loans under the Credit Linked Subsidy Scheme (CLSS) to homebuyers belonging to the economically weaker section (EWS), Low Income Group (LIG) and Middle Income Groups (MIG), HDFC said in a statement. 
The housing finance company has partnered with the Ministry of Housing & Urban Affairs and the National Housing Bank to work towards the government’s goal of “Affordable Housing for All”
“The government’s PMAY scheme is a growth accelerator programme that aims to provide affordable housing to people in the country. The thrust on housing is a recognition that a rapidly growing country like India with a large young population needs more affordable homes. The government has rightly incentivised all constituents in the housing chain – be it developers, borrowers and lenders in order to make India a property owning democracy,” said Renu Sud Karnad, Managing Director, HDFC Ltd. She further added that people should take advantage of this scheme at the earliest as the ones for the MIG category are only available until 31 March, 2020. In this regard, HDFC has also engaged with developers and channel partners to reach out to eligible beneficiaries. 
During 2018-19, the housing finance company has approved 37% of home loans in volume terms and 18% in value terms to customers from the EWS and LIG segment. On average, the corporation has been approving 8,600 loans on a monthly basis to the EWS and LIG segment, with such average approvals at Rs1,460, they said in a statement. The average home loan to the EWS and LIG segment stood at Rs10.1 lakh and Rs17.5 lakh respectively. 
CLSS, which was introduced in June 2015 under the PMAY for EWS, LIG and extended to MIG from January 2017, gives borrowers an interest subsidy of 6.5% per annum for loans up to Rs6 lakh for EWS and LIG category (annual household income up to Rs6 lakh). Interest subsidy of 4% and 3% are provided for loans up to Rs 9 lakh and Rs 12 lakh, respectively, for MIG category for a maximum tenure of 20 years. 
The effective subsidy to customer is in the range of Rs2.30 – Rs2.67 lakh on a 20 year term, receivable upfront. The schemes for MIG are valid up to March 32, 2020, while the plans for EWS/LIG are valid up to March 31,2022.
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