Ahead of the Lok Sabha elections, the central government is gearing up to offer a substantial benefit to the middle class residing in urban areas.
The eagerly anticipated gift is a new housing scheme tailored for this demographic. A meeting is scheduled between government officials and bank representatives to discuss this initiative.
It’s worth noting that Prime Minister Narendra Modi hinted at this scheme during his speech from the Red Fort on August 15, without divulging specific details.
The Blueprint
According to recent reports from Reuters, the government intends to provide interest relief under the housing scheme, amounting to a total of Rs 600 billion ($7.2 billion) over the next five years.
Under the scheme, annual interest subsidies ranging from 3% to 6.5% will be available for loans up to Rs 9 lakh.
The scheme is expected to cover home loans under Rs 50 lakh, with a repayment period of 20 years.
Beneficiaries may opt to deposit the interest subvention as an advance payment into their home loan accounts.
The scheme is slated for a five-year run, lasting until 2028. However, official responses from the Ministry of Housing and Urban Development and the Ministry of Finance are still pending.
Significance in the Election Year
This new government initiative holds particular significance as major state elections are scheduled for later this year, followed by the Lok Sabha elections in 2024.
In the lead-up to these elections, the government is actively seeking to connect with as many citizens as possible through various schemes and relief measures.
An additional increase of Rs 100 in subsidy under the Ujjwala scheme is also part of this effort.
Notably, beneficiaries of the Ujjwala scheme will now receive a subsidy of Rs 300, up from Rs 200, benefiting over 9 crore people covered by the scheme.
