INTEREST Subsidy Scheme For Housing The Urban Poor (ISHUP)
ISHUP− is a programme initiated by the central government to help the urban poor in realizing their dream of ’my home’ by financially assisting in the form of lending house loans at a subsidized rate of interest. "ISHUP Monitoring Programme" application was developed by MRC to capture eligible citizens’ details for providing financial aid to realize their dream of ’my home’ across the 219 ULBs of Karnataka. The main objective of ISHUP application is to capture all the eligible applicant details and provide a reliable database for the municipal administration to govern at ease.
Expected outputs:
Develop Slum Free Cities by 2014
Ensure sustainability of Urban Poor
Bringing convergence among stake holders
Providing real time Information through Data Warehouse
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) has been conceived for providing interest subsidy on housing urban poor to make the housing affordable and within the repaying capacity of EWS/LIG. The scheme encourages poor sections to avail of loan facilities through Commercial Banks/HUDCO for the purposes of construction of houses and avail 5% subsidy in interest payment for loans upto Rs. 1 lakh. The total interest subsidy requirements for the construction of 3.10 lakhs houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 1100 crores.
The Scheme will leverage flow of institutional finance for the EWS and LIG segment households and result in creation of additional housing stock of 3.10 lakh houses for EWS/LIG segments over the next 4 years (2008-12) out of which 2.13 lakh dwelling units are targeted for EWS housing and 0.97 lakh for LIG housing. Households with monthly income of upto Rs 3,300 are classified as EWS while those with monthly income between Rs 3,300 and Rs 7,300 are termed LIG.
Loan will be available for construction of new houses. Loan repayment periods will be permissible generally ranging form 15-20 years. The subsidy will be 5% p.a. for EWS and LIG, admissible for a maximum loan amount of Rs. 1 lakh over the full period of the loan. Beneficiary borrowers may choose fixed or floating rates (the consequences clearly explained to the borrowers by PLIs). An additional 1% p.a. maximum will be permitted to be charged by banks/HFCs if fixed rate loans are extended which will be subject to reset after a minimum period of 5 years. Mortgage of the dwelling unit be accepted as primary security. However, there would be no collateral security/third party guarantee for loans upto and inclusive of Rs. 1 lakh excluding group guarantee. No levy of prepayment charges would be permitted.
Under the scheme, preference (subject to beneficiaries being from EWS/LIG segments) will be given to Scheduled Caste, Schedule Tribe, Minorities, Person with disabilities and women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
In order to disseminate the details of Scheme and clarify doubts, this Ministry has held two consultations with Housing Secretaries of States/UTs and representatives of Public Sector Banks (PSBs) on 4th and 22nd May 2009. Banks/HFIs which have to act as the Primary Lending Institutions (PLIs) have responded well to the scheme and so far the following Banks/HFIs have signed Memorandum of Agreement (MOA) with the two Central Nodal Agencies (CNAs), namely National Housing Bank (NHB) & Housing & Urban Development Corporation Ltd. (HUDCO) who are to act as financial intermediaries for release of subsidy to PLIs under the Scheme.
State Bank of India
Oriental Bank of Commerce
United Commercial Bank (UCO Bank)
Indian Bank
Corporation Bank
Punjab & Sind Bank
Syndicate Bank
Union Bank of India
Punjab National Bank
Central Bank of India
Bank of Baroda
State Bank of Mysore
Allahabad Bank
Jammu & Kashmir Bank
Vijaya Bank
Dena Bank
Karnataka Bank Ltd.
HFCs
Housing Development & Finance Corporation (HDFC) Ltd.
Dewan Housing Finance Ltd. (DHFL)
LIC Housing Finance Ltd.
Manipal Housing Finance Ltd.
Vishwakriya Housing Finance Ltd.
This has further been followed up by visits to different states and meetings with the State Secretaries, Municipal Commissioners, Senior level bank officers etc. and during last three months Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa and Chhattisgarh have been covered. The response of the States has been encouraging and the scheme has been received well by the State Governments.
For more details click here or visit http://www.mrc.gov.in
ISHUP− is a programme initiated by the central government to help the urban poor in realizing their dream of ’my home’ by financially assisting in the form of lending house loans at a subsidized rate of interest. "ISHUP Monitoring Programme" application was developed by MRC to capture eligible citizens’ details for providing financial aid to realize their dream of ’my home’ across the 219 ULBs of Karnataka. The main objective of ISHUP application is to capture all the eligible applicant details and provide a reliable database for the municipal administration to govern at ease.
Expected outputs:
Develop Slum Free Cities by 2014
Ensure sustainability of Urban Poor
Bringing convergence among stake holders
Providing real time Information through Data Warehouse
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) has been conceived for providing interest subsidy on housing urban poor to make the housing affordable and within the repaying capacity of EWS/LIG. The scheme encourages poor sections to avail of loan facilities through Commercial Banks/HUDCO for the purposes of construction of houses and avail 5% subsidy in interest payment for loans upto Rs. 1 lakh. The total interest subsidy requirements for the construction of 3.10 lakhs houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 1100 crores.
The Scheme will leverage flow of institutional finance for the EWS and LIG segment households and result in creation of additional housing stock of 3.10 lakh houses for EWS/LIG segments over the next 4 years (2008-12) out of which 2.13 lakh dwelling units are targeted for EWS housing and 0.97 lakh for LIG housing. Households with monthly income of upto Rs 3,300 are classified as EWS while those with monthly income between Rs 3,300 and Rs 7,300 are termed LIG.
Loan will be available for construction of new houses. Loan repayment periods will be permissible generally ranging form 15-20 years. The subsidy will be 5% p.a. for EWS and LIG, admissible for a maximum loan amount of Rs. 1 lakh over the full period of the loan. Beneficiary borrowers may choose fixed or floating rates (the consequences clearly explained to the borrowers by PLIs). An additional 1% p.a. maximum will be permitted to be charged by banks/HFCs if fixed rate loans are extended which will be subject to reset after a minimum period of 5 years. Mortgage of the dwelling unit be accepted as primary security. However, there would be no collateral security/third party guarantee for loans upto and inclusive of Rs. 1 lakh excluding group guarantee. No levy of prepayment charges would be permitted.
Under the scheme, preference (subject to beneficiaries being from EWS/LIG segments) will be given to Scheduled Caste, Schedule Tribe, Minorities, Person with disabilities and women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
In order to disseminate the details of Scheme and clarify doubts, this Ministry has held two consultations with Housing Secretaries of States/UTs and representatives of Public Sector Banks (PSBs) on 4th and 22nd May 2009. Banks/HFIs which have to act as the Primary Lending Institutions (PLIs) have responded well to the scheme and so far the following Banks/HFIs have signed Memorandum of Agreement (MOA) with the two Central Nodal Agencies (CNAs), namely National Housing Bank (NHB) & Housing & Urban Development Corporation Ltd. (HUDCO) who are to act as financial intermediaries for release of subsidy to PLIs under the Scheme.
State Bank of India
Oriental Bank of Commerce
United Commercial Bank (UCO Bank)
Indian Bank
Corporation Bank
Punjab & Sind Bank
Syndicate Bank
Union Bank of India
Punjab National Bank
Central Bank of India
Bank of Baroda
State Bank of Mysore
Allahabad Bank
Jammu & Kashmir Bank
Vijaya Bank
Dena Bank
Karnataka Bank Ltd.
HFCs
Housing Development & Finance Corporation (HDFC) Ltd.
Dewan Housing Finance Ltd. (DHFL)
LIC Housing Finance Ltd.
Manipal Housing Finance Ltd.
Vishwakriya Housing Finance Ltd.
This has further been followed up by visits to different states and meetings with the State Secretaries, Municipal Commissioners, Senior level bank officers etc. and during last three months Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa and Chhattisgarh have been covered. The response of the States has been encouraging and the scheme has been received well by the State Governments.
For more details click here or visit http://www.mrc.gov.in
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