2018

Affordable Housing &

Housing Finance
 Housing Finance - India
Trend in yearly Outstanding Individual loans of HFCs & PSBS
14.0
13.1

12.0
10.9
20%
10.0 9.5
14%
₹ in Lakh Crore

8.0 19%
8.0
6.8 18% 6.9
6.2
21% 5.9
6.0 5.6
5.2 5.0
4.4 4.3
3.8 3.6
4.0
3.1 3.0
2.5

2.0

0.0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Housing Finance Companies Public Sector Banks Total

Based on past trends, the housing finance market in the country is expected to grow annually at an average of around 16%, over the next five years.
2
Source: National Housing Bank
NHB – Financing Roles & Impact on Informal Housing
 The Rural Housing Fund (RHF) & Urban Housing Fund (UHF): Both RHF and UHF were announced by the
GoI for making available low cost – long term housing finance to EWS of the population with fixed interest
rates. Further, to ensure that the intended benefit of lower interest rates reaches to ultimate borrowers, on-
lending rates have been capped.
• Large number of RHF/UHF beneficiaries' are covered under the informal income segment.
• Cumulative Disbursements:

Rural Housing Fund (2008-18) - ₹31,311 Crore | 19.5 Lakh Units

Urban Housing Fund (2013-18) - ₹10,511 Crore | 2.2 Lakh Units

 Affordable Housing Fund (AHF) in National Housing Bank: Union Budget 2018-19 affirmed the thrust on
promoting affordable housing, by announcing the establishment of a dedicated Affordable Housing Fund (AHF)
in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by
the Government of India.
 This will make available low cost long term fund for financing affordable housing.

3
PMAY - Housing For All - Urban (Progress)

Physical Progress
• Houses Sanctioned: ₹53.79 Lakh
• Houses Grounded: ₹29.49 Lakh
• Investment in Projects: ₹2,96,169 Crore
• Central Assistance Committed: ₹81,952 Crore
• Central Assistance Sanctioned: ₹38,783 Crore
• Central Assistance Released: ₹27,811 Crore

4
Credit Linked Subsidy Scheme (CLSS)

Particulars EWS LIG MIG I MIG II

Household Income (Rs.) Upto 3,00,001/- to 6,00,001/- to 12,00,001/- to
3,00,000/- 6,00,000/- 12,00,000/- 18,00,000/-
Dwelling Unit Carpet Area (Up to) in
sq. m & approval Month 30 60 160 200
Interest Subsidy (% p.a.) 6.5% 4.0% 3.0%
Maximum Loan Tenure 20 Years
Eligible Housing Loan Amount for
Interest Subsidy (Rs)* 6,00,000/- 9,00,000/- 12,00,000/-

Discounted Rate for Net Present

Value (NPV) calculation 9%

Upfront Amount for Subsidy (Rs.) 2,67,280/- 2,35,068/- 2,30,156/-

for a 20 Year Loan

Savings in Monthly EMI (Rs.) 2,500/- 2,250/- 2,200/-

Approx. @ Loan Interest of 10%
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Credit Linked Subsidy Scheme (CLSS) (as on 24.07.2018)

No. of Beneficiaries 2015-16 2016-17 2017-18 2018-19 till date Total till Date
CLSS - EWS/LIG 5835 22607 85424 47126 160,992
CLSS - MIG 27025 17039 44064
Total 5835 22607 112449 64165 205056
in Rs. Crs

Subsidy Released 2015-16 2016-17 2017-18 2018-19 till date Total till Date
CLSS - EWS/LIG 99 424 1918 1090.35 3530.98
CLSS - MIG 564 359.55 923.50
Total 99 424 2481.57 1449.90 4454.48

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 Credit Linked Subsidy Scheme (CLSS)

CLSS - No. of Beneficiaries - YoY Subsidy Amount YoY in Rs. Cr

180000
4000
160992
160000 3530.98
3500
140000
3000
120000
2500
100000 1918
85424 2000
80000
1500
60000 1090.35
47126 44064 923.50
1000
40000 564
27025 424 359.56
22607 500
17039 99
20000
5835
0
0 2015-16 2016-17 2017-18 2018-19 till Total till Date
2015-16 2016-17 2017-18 2018-19 till Total till Date date
date
CLSS - EWS/LIG CLSS - MIG
CLSS - EWS/LIG CLSS - MIG

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PMAY – Credit Linked Subsidy Scheme (EWS/LIG & MIG)

Scheme Net Net Subsidy

Name Households Amount

₹ 3,531
EWS/LIG 160,992 Crore

₹ 923
MIG 4,0541 Crore

Grand ₹ 4,454
Total 2,05,056 Crore

CLSS on home loans under PMAY

(Urban) has been extended till March 2019

Carpet area in the MIG I & II category of

CLSS has been increased up to 160 Sq.m
and 200 Sq. m respectively

CLSS Subsidy Interest Subsidy to be

received by an individual is ‘exempt from
tax’

Source: National Housing Bank

 Share of Banks and HFCs in PMAY - CLSS
PLI group wise subsidy disb. under PMAY-CLSS for EWS/LIG
as on 30-06-2018 Number of units disbursed under 25 lakh in FY 2017-18
2%

15% 29%
12,380 21,644 12 lakh
7%

71%
76%
30 lakh
1,18,890

Housing Finance Companies Public Sector Banks Private Sector Banks Others Housing Finance Companies Public Sector Banks

PLI group wise subsidy disb. under PMAY-CLSS for MIG

as on 30-06-2018 Number of units disbursed above 25 lakh in FY 2017-18
1%

14%
5,377 31%
3.8 lakh

28%
11,123 69%
58% 8.4
23,502
lakh

For Individual Housing Loan Disbursement under ₹ 25 Lakh, PSBs (71%) have the largest share but under CLSS for EWS/LIG, PSBs share stands at 7%.

For Individual Housing Loan Disbursement under ₹ 25 Lakh, PSBs (69%) have the largest share but under CLSS for EWS/LIG, PSBs share stands at 28%. 9
We must build an agenda for speedy yet sustainable economic growth that
is inclusive of all, is respectful of individuals, responsive to innovation and
responsible towards the future generations

~Shri Narendra Modi

Honorable Prime Minister of India