NEW DELHI:Government gave its approval for the launch of the 'Housing for All by 2022' scheme paving the way for affordable homes to the urban poor and slum dwellers at low interest rates.

The Union Cabinet chaired by Prime Minister Narendra Modi 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.

According to a senior Housing and Urban Poverty Department Alleviation official, at present, with the interest rate of 10.50 per cent, current EMI on admissible loan component of Rs 6 lakh, over 15-year loan duration works out to be Rs 6,632 per month.

With Cabinet deciding on credit-linked subsidy to 6.50 per cent, EMI comes down to Rs 4,050 per month, benefiting the urban poor by Rs 2,582 per month, he said.

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