HDFC, which is optimistic that the government's interest subsidy scheme will boost affordable housing, has already disbursed about Rs 400 crore under the plan and sees a huge growth potential going ahead. The Credit Linked Subsidy Scheme (CLSS) to boost demand for affordable housing can be a game changer and help revive the real estate sector, which is facing a multi-year slowdown, and other related industries, HDFC MD Renu Sud Karnad said.
Under the scheme, the government provides interest subsidy up to 6.5 per cent to first time home buyer with household income up to Rs 1.5 lakh per month. "The scheme can be a game changer. I think, it could be a catalyst to bring about revival in the housing sector, which in turn will lead to very positive impact on the economic growth as almost 269 industries big and small depend on the housing sector," Karnad told PTI.
The subsidy scheme coupled with benefits provided to developers on construction of affordable housing will create a extremely positive impact, she said. HDFC has provided loans worth Rs 400 crore to over 2,900 customers in EWS/LIG category under this scheme so far and has granted subsidy worth Rs 58 crore.
Asked about the target going forward, Karnad said, "At this stage, it is difficult to quantify. But, we see a huge potential. "At HDFC, our responsibility is to take this PMAY (Pradhan Mantri Awaas Yojana) to the real beneficiaries by educating them. In fact, we have created special teams across the country just to promote these initiatives by the government."