Centre to launch scheme to fund poor housing

Centre to launch scheme to fund poor housing

Announcing this at ‘India Urban Conference,’ a seminar here on Tuesday, Housing and Urban Poverty Alleviation Minister Kumari Selja said that this fund would be created by the Centre under the proposed Rajiv Awas Yojana (RAY) and Rs 1,000 crore has been earmarked as an initial corpus.

The Minister said under the scheme, the government will provide credit guarantee support to collateral free or third party guarantee free housing loans up to Rs 5 lakh extended by lending institutions to Low Income Housing (LIG).

Besides, loan will also extended to economically weaker section or LIG borrowers for repairs, home improvement, constructions, acquisition and purchase of new or second hand dwelling units, involving amount not exceeding Rs 5 lakh per loan. To administer and oversee the operations of the scheme, separate Credit Risk Guarantee Fund Trust will be established, said the minister.