PM Modi-led Central government is considering spending $7.2 billion (around 60,000 crore in Indian rupees) to provide subsidised loans for small urban housing over the next five years, Reuters reported citing two government sources.
The scheme is likely to be rolled out by the banks in a couple of months, ahead of key state elections late this year and general elections in mid-2024. Last month, the Centre had cut cooking gas prices for households by about 18 per cent to rein in inflation ahead of elections.
Housing Minister Hardeep Singh had in August said that the Centre will launch the interest subsidy scheme on home loans for the poor and middle classes in urban areas this month (September).
PM Narendra Modi announced the plan in his August 15 speech to mark the country’s Independence Day. However, the details of the scheme were not revealed.