The Indian government is considering a scheme to provide discounted loans worth ₹600 billion ($7.2 billion) for small-scale urban housing over the next five years. Banks are expected to launch this initiative in the coming months, coinciding with crucial state elections later this year and the general elections in mid-2024. Prime Minister Modi introduced this plan during his Independence Day speech in August. The program will offer an annual interest subsidy of 3% to 6.5% on loans up to ₹0.9 million, available for housing under ₹5 million with a 20-year repayment term. The subsidized credit scale will depend on housing demand. This initiative aims to aid low-income families in urban areas, especially those in rented accommodations, slums, chawls, and unauthorized colonies.
