Something is better than nothing
The Centre is about to finalise a scheme aimed at making housing more affordable for the poor in urban areas, by providing them with home loans at subsidised interest rates.
The scheme basically proposes to increase credit flow to the economically weaker sections (EWS) and lower income groups (LIG) who find it difficult to purchase a house due to problems in getting loans from banks and the high interest rates prevailing in the financial market.
Under the scheme, which is being given finishing touches by the Ministry of Housing and Urban Poverty Alleviation, a five-year rebate on the interest payable on the housing loan amount will be given to borrowers from low-income households.
According to a senior official, the loans will be made available at reduced interest rates by designated public sector banks and government-run lending agencies in all states. These, in turn, will be compensated by the ministry for the difference between market rates and the lower rates.
Source: Indian Express, 06-Sep-2007
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