HFCs jump upto 5% as govt kicks off 'Housing for all by 2022' mission

MUMBAI: Shares of housing finance companies were in the spotlight today, surging up to 5 per cent, after the government gave its approval to the launch of 'Housing for All by 2022' scheme, paving the way for affordable homes to the urban poor and slum dwellers at lower interest rates.

LIC Housing Finance closed at after it surged 4.63 per cent in intraday trade while Dewan Housing Finance Corporation ended 12.25 points or 2.96 per cent up at 426.00after it rose 4.21 per cent in intraday trade on BSE.

Others like GIC Housing Finance closed 9.25points or 4.40 per cent up and Indiabulls ended the session16.35points or 2.81 per cent up at ​ 597.95 after it advanced 3 per cent in intraday trade.

The Union Cabinet accepted the recommendations of an Inter-Ministerial Committee to increase interest subvention to 6.50 per cent on housing loans to beneficiaries belonging to economic weaker section (EWS), including slum-dwellers and low-income groups (LIGs).

The Cabinet's decision will benefit the urban poor by an amount of nearly Rs 2.30 lakh each and as a result, the monthly EMI will come down by nearly Rs 2,852 per month.

NDA's flagship scheme will be formally launched on June 25 when the government will bring out guidelines for its implementation.