Subsidy scheme for housing for the urban poor

(ISHUP)
Salient Features

PURPOSE:
• The Scheme will provide home loan with Central Government subsidy
to EWS/ LIG persons for acquisition of house as also for construction
of house to such beneficiary, who does not own a house in his/ her
name or in the name of his/ her spouse or any dependent child.
• EWS (Economically Weaker Section) means households having an
average monthly income up to ₹ 5,000.
• LIG (Low Income Group) means households having an average
monthly income between ₹ 5001 up to ₹ 10,000.
CONT..

Eligibility:
• For salaried persons: 36 times of last drawn salary.
• For others – Max. 3 times of average annual income (for last 3 years).
Loan amount admissible:
• For EWS - Maximum amount ₹ 1 lakh, for a house of at least 25 sq. mts
• For LIG - ₹ 1,60,000, for a house at least of 40 sq. mts. However, subsidy
eligibility will be on ₹ 1 lakh only. Additional loans, if needed would be at
unsubsidized rates in both cases.
 CONT..

• No loan for purchase of plot.

• Margin: Minimum 20%
• Rate of interest: As applicable for housing loans
• Repayment: Maximum 20 years including moratorium period.
• Security: Mortgage of house constructed/ purchased out of loan (no
collateral/ third party guarantee for loans up to ₹ 1 lakh excluding group
guarantee.
• No processing charges.
• Free Home Loan SurakshaBima of National Insurance Co. Ltd
 Subsidy Reimbursement

• 5% p.a. on interest charged on the admissible loan amount

• Net Present Value (NPV) of this subsidy on the basis of notional

discount rate of 9% p.a.,
Nodal Agencies
• National Housing Bank (NHB)

• Housing & Urban Development Corporation Ltd. (HUDCO)