Govt To Soon Launch Scheme To Provide Relief In Bank Loans For Those Dreaming Of Their Own House In Cities: Modi

PM Narendra Modi said, "Weaker people who live in cities, without homes face problems. Middle class families dream about their own homes. In the coming days, we will bring a scheme for them."

Prime Minister Narendra Modi in his Independence Day speech said the government will soon launch a scheme to provide relief in bank loans to those dreaming of their own house in cities. Addressing the nation from Red Fort, Modi said his government will soon launch the scheme for middle-class families living in cities but do not own a house.

Prime Minister Narendra Modi said, "Weaker section of the people who live in cities without homes, face problems. Middleclass families dream about their own homes. In the coming days, we will bring a scheme for them. For families who live on rent, in makeshift housing, in the chawls, for them we will bring a scheme for them to give relief in bank loans."

Prime Minister's comment comes as reports regarding rising home prices in metro cities have been coming out. Last week, a report by CREDAI and Colliers Liases Foras said that housing prices across the top eight cities in India increased 7 per cent year-on-year (YoY) "amid robust housing demand backed by continued positive homebuyer sentiment and stable interest rates." 

The report said that over the last 10 quarters, there has been a consistent upward trend in housing prices across the country led by robust demand. 

Another report by, Anarock Group said that affordable housing in India suffered the most due to the Covid-19 pandemic, and unlike the other segments, has not recovered in the past two years. With buyers of this segment increasingly desisting from purchase decisions, affordable housing sales are languishing, and developers have accordingly curtailed its supply. According to the report, the share of affordable housing in overall sales in H1 2023 shrunk to 20 per cent, an 11 per cent decrease against the corresponding period in 2022.

PM Modi during his speech also said that in five years, over 13.5 crore poor people came out of poverty to become part of neo-middle, middle classes. He said the government's every moment, every rupee going towards the welfare of citizens. 

"It is Modi's guarantee that India will be among the top three global economies in the next five years," he said.

On June 25, 2015, the Prime Minister launched the Pradhan Mantri Awas Yojana - Urban (PMAY-U), a flagship Mission of the central government. The PMAY-U initiative is being implemented by the Housing and Urban Affairs Ministry. According to the ministry, around 1.18 crore dwellings were sanctioned under PMAY (Urban) until July 31, this year, with 76.02 lakh handed to beneficiaries.