The government has extended the benefit of interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS) for households that fall in the middle-income group (MIG) with annual incomes between ₹6 lakh and ₹18 lakh, This extension is till March 2021. The scheme was launched in May 2017 and ended on 31 March 2020.
In a press conference, Finance Minister Nirmala Sitharaman told media that the till now, the scheme has benefited 330,000 middle-class families and is expected to benefit another 250,000 families in FY21. As per the estimates by government, the subsidy scheme will give a ₹70,000 crore boost to the housing sector. Apparently, it will create job opportunities, stimulate demand for steel, cement, transport and other construction material.
“This will help push demand for affordable housing,” said Anuj Puri, chairman, ANAROCK Property Consultants Pvt. Ltd, a real estate consultancy. According to data from ANAROCK, currently, there are 1.56 million under-construction units across the top seven cities. 39% of these are in the affordable segment priced below ₹40 lakh.