Modi govt to give big bonanza to home buyers before elections: Sources

New Delhi: The Narendra Modi government may give big bonanza for home buyers before elections by fast-tracking the disbursal of interest subsidy to home buyers under Credit Linked Subsidy Scheme (CLSS), sources told Zee Media.

Sources added that the government has asked National Housing Bank (NHB) and other commercial banks to also ensure that there is no delay in the process of  disbursal of interest subsidy to home buyers.

Currently, home buyers under CLSS have to wait for nearly 3 to 4 months for disbursal of subsidy. And till the home buyers get the said subsidy, they have to bear the entire interest on the EMI.

Sources said that government wants banks to initiate the disbursal process immediately after getting details of requisition from home-buyers. Sources also added that the government will provide additional Rs 7000 crore to NHB to help them speed up the process.

In 2016, PM Modi had announced the credit linked subsidy scheme for middle income groups under the Pradhan Mantri Awas Yojna (PMAY).

Under the scheme, an interest subsidy of four percent on housing loans of up to Rs nine lakh for those with an income of Rs 12 lakh per year and of three percent on housing loans of up to Rs 12 lakh for those having an income of Rs 18 lakh per year was to be given.