NBFCs seek extension of subsidy under PMAY-CLSS for two years

Mumbai: Non-bank finance companies have approached the Central Ministry of Housing to seek clarification on their position on continuing new payments under the PMAY Credit Linked Support Scheme (CLSS) for the poor and disadvantaged. Non-bank financial firms are seeking to extend the plan, which expires this month, for another two years. The director general of the Housing Finance Corporation said, on condition of anonymity, “We seek to hold a meeting with the Ministry of Housing and its senior officials to obtain clarification on the extension of the CLSS scheme for the economically weakest section and the category low income .” . "We are also calling for the scheme to be extended for another two years as it not only helps provide housing for the poor, but also creates a significant number job opportunities in rural India.

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The Cabinet recently approved the extension of the PMAY-Gramin scheme beyond March 2021 to March 2024 to achieve the overall target of 29.5 million rural households. The extension only allows benefits for the remaining 15.575 million families within the general goal. "After this budget, despite allocating INR 55,000 crore, clarity still awaits from HUPA and NHB. Nearly 40% of our home loan clients have been eligible for PMAY benefits so far. As the decision on this issue is still in limbo, a senior official from one of the housing financiers said, "We have stopped providing PMAY-type comprehensive LIG category clients."

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