LIC Housing Finance, a leading mortgage lender has disbursed ₹2,115 crores worth of subsidies to its customers under the Credit Linked Subsidy Scheme (CLSS) as a part of PM Awas Yojana since its inception in 2017 mentioned a top official. Siddhartha Mohanty, the managing director, and chief executive of LIC Housing Finance stated that under this scheme, the second-largest mortgage player has disbursed more than ₹12,000 crores of affordable housing loans to 1,01,521 borrowers till the end of September.
SBI, India’s largest lender and the largest home loan lender, leads the scheme by a broader edge. Mohanty stated that they had distributed ₹2,115 crores in home loan subsidies to those customers who are eligible for the CLSS under the PM Awas Yojana since its inception in 2017 and till the end of September. The Credit Linked Subsidy Scheme for the middle-income group was initially introduced in 2017 for a year. Since then it has been extended many times till the end of March 2020.
Due to the effect of the COVID-19 pandemic, it was extended up to March 2021 this year as a part of the booster measures. The MIG families comprising of two slabs- those having an annual income of ₹6-12 lakh called MIG-I, and those having ₹12-18 lakh are in the MIG-II slab. From the government, the MIG –I borrowers can get an interest discount of 4% and can borrow up to ₹9 lakhs, and the MIG-II borrowers who can borrow up to ₹ 12 lakh, get an interest discount of 3 % for the entire tenor of the loan.
Under the PM Awas Yojana, the CLSS is a part of 2015, scheme to build a home for the urban poor, envisaging affordable housing for all by 2022. Originally, the scheme was meant for the economically weaker section or lower income group households with an annual income of ₹3-6 lakh. Even with the widespread hitting its business, LIC HFL reported a net income of ₹817.48 crores in the June quarter. Its net interest income rise was only 3 % to ₹ 1,220.61 crore and total income rise by 4 % to ₹5,003.71 crores respectively. Its outstanding loan portfolio stood at ₹2,09,817 crores, up 6%.
During the quarter its disbursements plunged to₹ 3,560 crores from ₹10,261 crores. Of this, disbursement in the individual home loan segment was ₹ 3,034 crores taking the total outstanding to ₹1,95,176 crore, up 6%, as against ₹ 7,871 crores, while project loans were ₹ 159 crores compared to ₹ 829 crores taking the total to ₹14,641 crores. Mohanty stated that on the moratorium accounts is 25% of the book, of which individual loans accounted for 16 % for which it has made a provisional provision of ₹ 2,668.89 crores for the June quarter.