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LIC Housing Finance Disburses Rs 2,115 Crore Subsidy To Over 1 Lakh Customers Under CLSS



SBI, the nation’s largest lender and also the largest home loan lender, leads the scheme by a wider margin, though.

Leading mortgage lender LIC Housing Finance has disbursed Rs 2,115 crore worth of subsidies to its customers under the credit-linked subsidy scheme (CLSS) as part of PM Awas Yojana since its inception in 2017, a top company official said.

Under this scheme, the second-largest mortgage player has disbursed more than Rs 12,000 crore of affordable housing loans to 1,01,521 borrowers till September-end, Siddhartha Mohanty, the managing director and chief executive of LIC Housing Finance.

SBI, the nation’s largest lender and also the largest home loan lender, leads the scheme by a wider margin, though.

“We have disbursed Rs 2,115 crore in home loan subsidies to our customers eligible for the CLSS under the PM Awas Yojana since its inception in 2017 and up to the end of September. The amount has been disbursed to 1,01,521 borrowers. Total loan disbursed under this scheme is over Rs 12,000 crore, making us the second largest lender under this scheme,” Mohanty said.

The credit-linked subsidy scheme for the middle-income group was initially launched in 2017 for a year. Since then it has been extended many times was to end in March 2020. But following the pandemic, it was extended up to March 2021 in May this year as part of the booster measures.

The MIG families comprise two slabs– those with an annual income of Rs 6-12 lakh called MIG-I, and those with Rs 12-18 lakh are in the MIG-II slab.

The MIG-I borrowers get interest discount of 4 per cent from the government and can borrow up to Rs 9 lakh and the MIG-II borrowers who can borrow up to Rs 12 lakh, get the interest discount of at 3 per cent for the entire tenor of the loan.

The CLSS is part of the 2015, scheme for urban poor to help build a home under the PM Awas Yojana, envisaging affordable housing for all by 2022.

Initially, the scheme was meant for the economically weaker section or lower income group households with an annual income of Rs 3-6 lakh.

Despite the pandemic hitting its business, LIC HFL reported a net income of Rs 817.48 crore in the June quarter. Its net interest income rose only 3 per cent to Rs 1,220.61 crore and total income rose 4 per cent to Rs 5,003.71 crore. Its outstanding loan portfolio stood at Rs 2,09,817 crore, up 6 per cent.

During the quarter its disbursements plunged to Rs 3,560 crore from Rs 10,261 crore. Of this, disbursement in individual home loan segment were Rs 3,034 crore taking the total outstanding to Rs 1,95,176 crore, up 6 per cent, as against Rs 7,871 crore, while project loans were Rs 159 crore compared to Rs 829 crore taking the total to Rs 14,641 crore.

On the moratorium accounts, Mohanty said it is 25 per cent of the book, of which individual loans accounted for 16 per cent for which it has made a provisional provision of Rs 2,668.89 crore for the June quarter.

Source: PTI

(This story has been published from a wire feed without modifications to the text. Only the heading has been changed)

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