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SOCIAL HOUSING SCHEMES

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The following social housing schemes are being implemented in the State sector with State Plan provision and loan assistance from HUDCO and other financial institutions: Housing Scheme for Economically Weaker Sections (EWS) with household income of Rs. 2100 per month or less. Housing Scheme for Low Income Group (LIG) with household income of not more than Rs.4500/- per month. HUDCO has evolved ceiling cost and loaning limits for various income groups linked with affordability and prevailing cost of construction for various geoclimatical contexts.The differential interest rate policy operates for various categories of households with over riding emphasis on concessional rate of loaning for EWS and LIG families. The lower the household income, the lower is the rate of interest. This provides incentives for executing agencies to promote housing for the less privileged and help reduce the loan repayment burden on the families.

Income Category	Net Rate of interest
EWS	8.5%(floating)
LIG	11.5%(floating)
MIG	14.5%(floating)
HIG	15.5%(floating)

          Similarly, the lower the cost of the shelter unit the higher is HUDCO’s loan component as part of the housing cost.