Income ceiling for low-cost housing loans increased

Aarti Dhar

NEW DELHI: The government has increased the income ceiling a month a household for housing loans from the existing Rs. 3,300 to Rs. 5,000 for the economically weaker sections (EWS) category and from Rs. 3,301 — Rs. 7,000 to Rs. 5,001 — Rs. 10,000 for the Lower Income Groups (LIG).

The revised ceilings will be applicable for definition of beneficiaries under government schemes for housing including the Interest Subsidy for Housing the Urban Poor Scheme (ISHUP), Basis Services for Urban Poor (BSUP) / Integrated Housing and Slum Development Programme (IHSDP). The existing upper ceiling of Rs. 3,300 a month for EWS and Rs. 7,300 a month for LIG will, however, continue to form the basis for calculation of affordability and subsidy: as also arriving at the EMIs under the ISHUP scheme, an official statement said on Monday.

The revisions were made on the recommendations made by the Planning Commission, Department of Expenditure, State governments and deliberations of a screening committee on the ISHUP. The last revision was done in 2006.