Government to make dream houses easier for widows, eunuchs

NEW DELHI: Widows and transgenders may get government backing to own a house in urban areas with a plan proposed to ease the interest burden. At present, only women, SC/ST, minorities and differently-abled persons get such a preference.

Learning from the experiences of Rajiv Rinn Yojna (RRY), an instrument to address the housing needs of the economically weaker section (EWS) and low income groups (LIG) through enhanced credit flow, the housing and poverty alleviation ministry has now proposed to replace it with a new scheme. It would be named as Home Owners' Mortgage Equity Subvention Scheme ( HOMES) for urban poor.

The ministry has targeted to extend this scheme for 35,000 dwelling units.

Sources said that ministry is now proposing that the interest subsidy on home loans for the urban poor would be increased from 5% to 5.5% and the entire interest amount can be paid upfront as down payment. "This is aimed at bringing down the EMI amount. If interest is paid upfront from the subsidy amount, the monthly installment will reduce significantly," said a government official.

The interest subvention has been proposed considering the fact that poor and needy may not be able to service the EMI when the interest rate is high. The ministry also proposes to increase the annual household income limits to qualify to avail the EWS and LIG housing schemes and to take advantage of HOMES. Even minimum dwelling size is likely to be increased from 21 sq meters to 27 sq meters.

The RRY launched in 2013 did not take as anticipated for several reasons including general reluctance on banks' parts to lend to beneficiaries with informal income. Even the beneficiaries could not appreciate the financial benefits accured through reduced EMIs, sources said.