Govt extends housing loan interest subsidy scheme, to benefit those earning up to Rs 18 lakh
- This extension will benefit people earning Rs 6-18 lakh annual income and will give 70,000-crore boost to housing sector, the government said.
- The credit-linked subsidy scheme (CLSS) for the middle income group with an annual income of Rs 6 lakh to Rs 18 lakh was originally operationalised from May 2017 and extended up to March 2020.
In a big move, the government on Thursday announced the extension of the deadline for the affordable housing Credit Linked Subsidy Scheme (CLSS) till March 2021. This extension will benefit people earning Rs 6-18 lakh annual income and will give Rs 70,000-crore boost to housing sector, the government said.
The credit-linked subsidy scheme (CLSS) for the middle income group with an annual income of Rs 6 lakh to Rs 18 lakh was originally operationalised from May 2017 and extended up to March 2020.
Government said the scheme is being extended by one year to benefit 2.5 lakh middle income families.
This will spur job creation and demand in the economy. Also, it will stimulate demand for steel, transport and other construction materials, it said.
“Ever since its implementation in 2017, the CLSS scheme has already benefitted over 3.3 lakh families and the extension will further aid many more families to avail housing under this scheme,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
“As a ripple effect of increased demand for affordable housing, it will positively push demand for raw materials like cement, steel, transport and other construction materials,” he added.
Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO also hailed the announcement.
“Affordable Housing would gain momentum with FM extending the CLSS till March 2021. It will be a big move for urban middle-class Indians (Income range of Rs. 6-18 lakhs), as well as for the housing sector,” he said.