CLSS Extension for Mid-Income Housing
For middle-income group for people between the income of Rs 6 lakh to 18 lakh, the government has extended the credit-linked subsidy scheme up to March 2021 inits second tranche announcement. <strong>Shishir Baijal, Chairman & Managing Director, Knight Frank India said, </strong>“The extensio
Published -
May 15, 2020 5:34 AM
For middle-income group for people between the income of Rs 6 lakh to 18 lakh, the government has extended the credit-linked subsidy scheme up to March 2021 inits second tranche announcement. Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The extension of CLSS for another year will help demand for the affordable housing sector to inch back as and when the economy starts to revive. This in turn will help the construction sector to restart operations at the earliest possible. However, for demand for housing to return, irrespective of the category, the economy must start growing at a stable rate providing individuals financial security. Thus, to assess the overall impact on the real estate sector, we await Finance Minister’s future announcements, including for infrastructure and other steps for demand augmentation.” Dr. Niranjan Hiranandani - National President – NAREDCO. Shared his views, “The Credit Linked Subsidy Scheme (CLSS) which has benefited 3.3 lakh families till now, has been extended up to March, 2021and wherein other category of LIG/ EWS however continues to get extension upto March 2022. Estimated to benefit another 2.5 lakh families, it aims at providing benefits that will enable housing for the lowest strata of middle-income groups (MIG I and MIG II category income of up to 6-18 lakh/annum). Considering that majority of the home buyers fall into this category of MIG I with income from Rs 6 lakhs to Rs 12 lacs continues to get an interest subsidy of 4 percent and MIG II category with income slab of Rs 12 to Rs 18 lacs gets interest subvention of 3 percent. Thus interest subvention support extended will spur up the potential demand of housing units resulting in to cumulative demand for construction services, building materials, finally translating into the job creation.” Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com stated, “The extension of the Credit Link Subsidy Scheme by one year will prompt many of the fence sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has max unsold inventory across the country. This will also help sustain employment as real estate supports close to 200 allied industries.” Pradeep Aggarwal, Founder & Chairman, Signature Global and & Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development expressed, “The CLSS extension announced by the government till March 2021 will benefit a lot of lower and middle class families under Pradhan Mantri Awaas Yojna. This scheme has already benefitted more than 3 lakhs people. With the latest announcement of Rs 70,000 cr are expected to enroll around 2.5 lakh families. This will definitely increase the demand and hence good news for affordable segment. Present government has always shown it’s intention to provide housing for all.” Anshuman Magazine, Chairman & CEO – CBRE India, South East Asia, Middle East & Africa was of the view, “For middle-income group, the extension of Credit Linked Subsidy Scheme (CLSS) upto March 2021, is a positive step and will further strengthen demand in the affordable housing segment.”
Tags : News/Views Latest News Dr. Niranjan Hiranandani Pradeep Aggarwal Shishir Baijal Anshuman Magazine Government Dhruv Agarwala CLSS Extension Mid-Income Housing second tranche credit-linked subsidy scheme