New Delhi: People belonging to the EWS (Economic Weaker Section) and lower income group (LIG) of the society can now breathe easy, the difficulty faced by them in borrowing a home loan at high interest rate prevailing in the market is going to be a thing of the past. The Central Government is finalizing a scheme which is aimed at providing home loans to the EWS and LIG population at subsidized interest rates.

Under this scheme, a housing loan will be made available to borrowers with low income, with a five-year rebate on the interest payable on the home loan. The Ministry of Housing and Urban Poverty Alleviation is formulating this scheme.

The home loans will be provided by designated public sector banks and government–run lending agencies in all states, with considerably reduced interest rates so as to make them affordable for the targeted groups.

Kumari Selja, the minister in-charge, of Housing and Urban Poverty Alleviation is keenly pursuing the scheme and it will be sent to the cabinet for approval very shortly. A sum of Rs. 30 Crore has been made available for the proposal in the current financial year.

The housing sector in urban areas is under heavy pressure and is witnessing an acute shortage. The heavy influx of migrants seeking job opportunities and better lifestyle coupled with the lack of purchasing power and low incomes has prompted the government to take positive steps to increase home ownership among the underprivileged.