The country's largest mortgage lender HDFC Ltd Wednesday said it has disbursed subsidy of more than Rs 2,300 crore under the government's flagship housing scheme PMAY, benefiting over one lakh first time home buyers.
The company has disbursed subsidy amounting to over Rs 2,300 crore benefitting over 1,04,000 families under the Pradhan Mantri Awas Yojana (PMAY) credit linked subsidy scheme (CLSS), HDFC said in a statement.
The company has approved Rs 22,136 crore of home loans under CLSS to homebuyers belonging to the economically weaker section (EWS), low-income group (LIG) and middle-income groups (MIG), HDFC said.
The mortgage lender has partnered with the Ministry of Housing & Urban Affairs and the National Housing Bank (NHB) to work towards the government's goal of 'Affordable Housing for All'.
"The government's PMAY scheme is a growth accelerator programme that aims to provide affordable housing to people in the country. The thrust on housing is a recognition that a rapidly growing country like India with a large young population needs more affordable homes," Renu Sud Karnad, Managing Director, HDFC Ltd said.
She also suggested that people should take all efforts to avail the benefits of these schemes at the earliest as the schemes for the MIG category is available only until March 31, 2020.
HDFC has also engaged with developers and channel partners so as to reach out to more eligible beneficiaries.
In 2018-19, the mortgage lender approved 37 per cent of home loans in volume terms and 18 per cent in value terms to customers from the EWS and LIG segment.
The corporation on an average has been approving 8,600 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at Rs 1,460 crore, it said.
The average home loan to the EWS and LIG segment stood at Rs 10.1 lakh and Rs 17.5 lakh, respectively.
CLSS, which was introduced in June 2015 under the PMAY for EWS, LIG and extended to MIG from January 2017, gives borrowers an interest subsidy of 6.5 per cent per annum for loans up to Rs 6 lakh for EWS and LIG category (annual household income up to Rs 6 lakh).
Interest subsidy of 4 per cent and 3 per cent are provided for loans up to Rs 9 lakh and Rs 12 lakh, respectively, for MIG category for a maximum tenure of 20 years.
The effective subsidy to the customer is in the range of Rs 2.30-2.67 lakh on a 20-year term, receivable upfront.
The schemes for MIG are valid up to March 31, 2020, while the plans for EWS/LIG are valid up to March 31, 2022.