Shares of housing finance companies were in the spotlight on Thursday, surging up to 5%, after the government gave its approval to the launch of 'Housing for All by 2022' scheme, paving the way for affordable homes to the urban poor and slum dwellers at lower interest rates.
LIC Housing Finance surged 4.63% while Dewan Housing Finance Corporation rose 4.21% on BSE.Others like GIC Housing Finance gained 4% and Indiabulls Housing Finance advanced 3%.
The Union Cabinet accepted the recommendations of an Inter-Ministerial Committee to increase interest subvention to 6.50% on housing loans to beneficiaries belonging to economic weaker section (EWS), including slum-dwellers and low-income groups (LIGs).
The Cabinet's decision will benefit the urban poor by an amount of nearly Rs 2.30 lakh each and as a result, the monthly EMI will come down by nearly Rs 2,852 per month.
NDA's flagship scheme will be formally launched on June 25 when the government will bring out guidelines for its implementation.