Shares of the housing finance companies rose today after the cabinet approved the launch of "Housing for All by 2022" scheme. With interest subvention of 6.5 percent on housing loans.
Also read: What is interest subvention?
"Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on NPV basis would be about Rs.2.3 lakh per house for both the categories, said in the official statement.
The Mission also prescribes certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing.
LIC Housing Finance was seen trading higher by 3.51% at Rs 429, GIC Housing Finance up 3.14% at Rs 217, Dewan Housing Finance up by 3.44% at Rs 427), Indiabulls Housing Finance 2.32% at Rs 595 and Housing Development Finance Corporation (HDFC) was up 0.68% at Rs 1,207 on BSE at 12.20 PM IST.