The National Housing Bank has disbursed more than Rs 30,000 Crore in interest subsidy for home loan borrowers. The scheme falls under the Prime Minister Housing Scheme (PMAY) which was launched in the month of June 2016.
PMAY scheme aims to ensure a roof over every household by the year 2030 and was launched as a part of the National Housing Mission. The PMAY offers around 3 percentage points in interest subsidy on low-cost home loans at 6.5 percent, however, limits one-time subsidy at Rs 2.35 lakhs.
The subsidies are channelised by the National Housing Bank, Hudco and State Bank of India. They are also responsible for monitoring and lending subsidies to the institutions.
According to Rahul Bhave, the Executive Director of NBH, they have paid back over Rs 30,000 Crore as subsidy to the needy eligible borrowers in the past five years.
NBH is also encouraging preplay lenders to go for co-lending with larger banks as a part of their mission to drive housing for all.
The market can be deepened if banks and housing loans companies could work together.
NBH is also working towards developing a secondary market for housing loans, by introducing more liquidity for investors as well as lenders.
