Nod for low-income housing credit risk fundMarch 23rd, 2012 - 10:13 pm ICT by IANS
New Delhi, March 23 (IANS) The union cabinet Friday approved the establishment of the Credit Risk Guarantee Fund Trust (CRGFT) for low income housing to ensure affordable housing stock.
The CRGFT will have an initial corpus of Rs.1,200 crore of which Rs.1,000 crore is being contributed from the central government and the remaining Rs.200 crore will come from the state governments who draw on it, in accordance with their slum populations, said a release after the cabinet meeting chaired by Prime Minister Manmohan Singh.
The decision comes in pursuance of the approval of the Rajiv Awas Yojana (RAY) Scheme by the cabinet committee on economic affairs (CCEA) in June 2011, which included the creation of a Risk Guarantee Fund for low income housing loans.
The urban affordable housing deficit is estimated to be about 26 million. The total housing loan outstanding was about Rs.3.06 lakh crore, of which only about 24 percent is for loans up to Rs.5 lakh, of which only a part is estimated as flowing to the economically weaker sections and low income groups, the release said.
“The establishment of such a government-supported Credit Risk Guarantee Fund would facilitate credit enablement of the urban poor and the flow of institutional finance for affordable housing,” it said.
“The CRGF is intended to act as a risk-mitigant, thereby enhancing the confidence of the lending institutions in lending to this segment,” it added.
- Use incentives to build affordable housing: Minister - Feb 28, 2011
- PM mulls Rs.1,000 crore corpus for housing poor - Dec 13, 2011
- Use incentives to build affordable housing: Selja (Lead) - Feb 28, 2011
- Legislation in offing for street vendors - Nov 11, 2011
- Realty industry has little to cheer from budget (Comment) - Mar 18, 2012
- Making housing affordable: Realty industry needs budget boost (Comment) - Feb 26, 2012
- Cabinet approves slum development in 250 cities (Lead) - Jun 02, 2011
- Small home loan borrowers to get 1 percent interest subsidy - Oct 25, 2011
- Rajasthan to offer houses to urban poor - Aug 09, 2012
- Pradeep Jain thanks FM for giving due importance to real estate sector - Feb 28, 2011
- Budget promises more money for all - farmers to corporates (Third Lead) - Feb 28, 2011
- Real estate regulator bill will improve transparency: Selja - Nov 04, 2011
- Prominent highlights of 2012-13 budget - Mar 16, 2012
- Budget highlights 8 - Mar 16, 2012
- Budget highlights 7 - Mar 16, 2012
Tags: awas, cabinet committee, credit risk, crore, guarantee fund, housing loan, income groups, institutional finance, lending institutions, low income housing, low income housing loans, manmohan singh, prime minister manmohan, prime minister manmohan singh, risk fund, risk guarantee, rs 200, state governments, union cabinet, yojana