In order to fulfill Government’s dream of providing Housing to All by 2022, National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India has disbursed Rs 3,018 crore under the PMAY-Urban Credit Linked Subsidy Scheme (CLSS), against 1,40,943 units. The information was released by managing director and CEO of NHB, Sriram Kalyanaraman.
Speaking at an event organized by ASSOCHAM, Kalyanaraman said, “Under the EWS/LIG scheme, we have disbursed Rs 2,436 crore against 1,13,081 units and under the MIG scheme, we have disbursed Rs 582 crore against 27,862 units.”
He further said that simplification of ECB guidelines has opened a new window of funding for housing finance companies in India, increasing the prospects of a fresh round of overseas borrowings.
According to him, foreign direct investment (FDI) and foreign institutional investors (FIIs) will also play a key role in boosting the supply of houses and infra projects in urban areas.
“Long-term financing at lower rates will reduce costs of construction for developers allowing them to pass on benefits to consumers,” he further said.
According to real estate experts, the progress made in housing sector development is commendable, it must be driven at an accelerated pace hereon. Financers, builders, banks must accelerate NHB’s and government’s efforts in achieving the goal of housing for all.
Apart from all this, easy and dedicated access to institutional financing, higher limit on external commercial borrowings will attract more investments and also assure sustained growth of affordable housing in India, making it the core driving segment for real estate.
Few weeks before, Union Housing and Urban Affairs Minister, Hardeep Singh Puri also informed the government has already sanctioned 4.5 million residential units under PMAY and with this pace; the target for Housing for all will be completed by 2019.