Finance Minister Nirmala Sitharaman on Saturday announced an additional rebate on home loan interest of Rs 1.5 lakh to home buyers to revive the sluggish real estate sector. Under this, people will get a discount on buying up to 45 lakh houses in cities.
The Finance Minister announced that the government has taken several steps to revive sluggish real estate. Under this, people will now be able to get a total discount of Rs 3.5 lakh on home loans. However, only those people will buy the house on 31 March 2020.
Government employees will be encouraged
The government will encourage government employees to buy houses, as they are the biggest consumers of the real estate sector. Special schemes will be introduced for government employees so that these people can easily buy the house.
1.95 crore houses to be built in villages
Apart from this, the government will build 1.95 crore houses in villages by 2022 under Pradhan Mantri Awas Yojana-Gramin. Toilets, electricity and LPG connections will be provided in these houses.
Loans for buying house, car and housing goods
The government will provide help to help non-banking finance companies and housing finance companies. With this help, people will be able to buy a house, cars and white goods at low interest. Apart from this, additional assistance of Rs 20 thousand crore will be provided to the housing finance companies from the National Housing Board. Under the Credit Guarantee Scheme, additional assistance of one lakh crore will be provided to these companies from banks.
Projects stranded will be completed
For the completion of already stranded affordable housing projects which have not gone to NPA or NCLT, the government will provide Rs. 10,000 crore help on its behalf. Apart from this, LIC, banks and other financial institutions will also help. The fund will go to a trust, which will be managed by people working in the housing and banking sectors.