Credit Linked Subsidy Scheme gives a boost to housing finance sector, says HDFC

HDFC, the country’s largest mortgage lender today said that the government’s interest subvention scheme has renewed interest of homebuyers in the Indian real estate sector and allowed first time home buyers to avail more benefits to own a house.

HDFC today released a report on Credit Linked Subsidy Scheme, a scheme under the aegis of ‘Pradhan Mantri Awas Yojana – Housing For All’. The report said that total 14,290 beneficiaries across the country have taken benefit under the plan amounting to total subsidy amount of Rs 302 crores.

HDFC has increased its efforts towards loans to the Economically Weaker Section- with household income up to Rs 3 lakh p.a and Low Income Group with household income greater that Rs 3 lakh up to Rs 6 lakh p.a. It has approved 39% of home loans in volume terms and 20% in value terms have been to customers from the EWS and LIG segment during the nine months ended December 31, 2017. It has on an average has been approving 8,000 loans on a monthly basis to the EWS and LIG segment, with monthly average approvals at approximately Rs 1,300 crore.


The average home loan to the EWS and LIG segment stood at Rs 10.24 lakh and Rs 17.38 lakh respectively.

So far, under the credit linked subsidy scheme HDFC has already provided loans worth Rs 1,728 crore to 10,764 customers so far with a subsidy worth Rs 228 crore. While under the CLSS MIG schemes HDFC has already provided loans worth Rs. 1,067 crore to 3,526 customers so far with a subsidy worth Rs. 74 crore.

“The current government has laid focus on affordable housing with the launch of PMAY,” said Renu Sud Karnad, Managing Director, HDFC. “Policies and programmes developed from time to time supported by budgetary support, have brought in a new era of reforms in the affordable housing sector.”