Usha Ananthasubramanian, MD & CEO of Punjab National Bank(PNB) and Sriram Kalyanaraman, MD & CEO National Housing Bank(NHB) signed a Memorandum of Understanding at Delhi.

PNB and NHB entered into a MOU to channelize the subsidy to the EWS/ LIG beneficiaries who will be provided Housing loans under the Pradhan Mantri Awas Yojana launched by the Hon’ble Prime Minister Sh Narendra Modi under the mission “Housing for All by 2022.”

The scheme will be implemented in all 4041 statutory towns as per Census 2011 with focus on 500 Class I cities during 2015-2022 by Ministry of Housing and Urban Poverty Alleviation (Mo/HUPA). Under the scheme, Beneficiaries of Economically Weaker Section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 %. The subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house.

The Credit Linked Subsidy will be available for loan amounts upto Rs 6 lakh only. Interest subsidy will be credited upfront in the loan account of beneficiaries through Bank/ lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).

Gauri Shankar, Executive Director PNB mentioned that alliance will help in successful implementation of the scheme. Other senior officials were also present on the occasion.