Considering the increasing housing requirements of housing in the country and the decrease in supply, the Government of India had declared ‘Housing for all’ till 2022 in 2015. To achieve this ambitious goal, more than 1.9 crore houses will be needed. Of these, 96 percent will be required for Lower Income Group (LIG) and Economically Weaker Sections (EWS). Not only can the Affordable Housing reduce the vast difference in the demand and supply of affordable prices, but it will also work to increase the pace of development, it will create jobs for more than 2 million jobs.
Providing discounts for affordable housing: To overcome the shortage of affordable housing in the country, the government has provided a number of exemptions. Public and private sector participation is also being encouraged to accelerate the construction of affordable housing. In this year’s budget, the developers have been exempted from paying tax on the profits from the economically weaker sections for 5 years. At the same time, the deadline for completing affordable housing projects has also been increased from 3 years to 5 years. The central government has increased the budget under the Prime Minister’s housing scheme from Rs 15,000 crore in 2016-17 to Rs 23 thousand crore for 2017-18. National Housing Bank, a subsidiary of Reserve Bank of India, has announced that it will refinance individual housing loans of 20 thousand crores during the financial year 2017-18. In the General Budget of 2017-18, Affordable Housing has been given Infrastructure Status. Now the developers have cheap options and sources for funding.
Financial support and exemption: In order to encourage affordable housing, the government has also announced several financial schemes. For the period of 15 years and upto Rs 6 lakh, the interest rate of home loan is being given 6.5 percent. E.W.S. And L.I.G. The government assistance is also being provided to every beneficiary who is covered under the category up to 1.5 lakh rupees. Interest on home loan upto Rs. 9 lakhs is 4% and interest of 3% on home loans up to Rs. 12 lakhs. In many states, the stamp duty fee is also being discontinued. Buyers of Middle Income Group (MIG), which earn between Rs. 6 and 18 lakhs per annum, are also eligible for exemption in home loan interest.