NEW DELHI: With banks and housing finance companies reluctant to provide loans to economically weaker sections and low income households, the Centre on Wednesday mooted a Revised Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) to be implemented in the 12th plan period.
A committee set up by the Ministry of Housing and Poverty Alleviation has made certain recommendations to the existing scheme, which has been redrafted into two parts, a Revised Interest Subsidy Scheme for Housing the Urban Poor and Rajiv Rin Yojana.
Under the ISHUP, the benefit of interest subsidy of 5 per cent on loans of `1 lakh given for a maximum period of 20 years to EWS and low income households is now being extended to beneficiaries of Integrated Housing & Slum Development Programme and Basic Service to Urban Poor under the government’s flagship Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awas Yojana.
The panel also proposed that the interest subsidy should be available to slum-dwellers for making additions to the living area of their households and for conversion of katcha houses into pucca structures.
Under the Rajiv Rin Yojana, the committee has suggested increasing the upper limit on loans of `1 lakh with interest subsidy of 5 per cent to `3 lakh for the EWS households and `5 lakh for the low income beneficiaries. The Rajiv Rin Yojana seeks to target 2.37 lakh beneficiaries and will have a financial implication of `2,900 crore.