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.