Relax Lending Norms For Affordable Housing, NITI Aayog Tells Govt
The government should consider a sub-category under Priority Sector Lending (PSL) for boosting the affordable housing sector, the NITI Aayog has suggested. "To ensure greater access for the poor to institutional finance, the Department of Financial Services should consider a subcategory under priority sector lending (PSL) for affordable houses," the NITI Aayog said on December 19.
It also suggested the land lying idle with various sick/loss-making public sector undertakings (PSUs) be used to resolve the issue of land availability for affordable housing projects. In 2017, the government gave an infrastructure status to affordable housing. The government think-tank also suggested that eligibility conditions for bank loans be relaxed to make lending to this sector easier.
The body also suggested that the government projects should focus on the life-cycle cost approach to house construction rather than the cost-per-square-foot approach to ensure the quality of construction and reduce expenditure incurred on the maintenance of houses.
With inputs from Housing News