In the background of the support extended by the poor and low income people to demonetisation efforts, PM has announced group of interest subvention and credit incentives for them. It is assessed that the low-income strata have suffered the heaviest from demonetisation produced economic havoc.
In his address to the nation, Modi announced several housing interest waiver packages to the poor. Two housing schemes that have interest subsidy for the urban poor and lower middle class will come into force from 2017. For housing loan, up to Rs 9 lakh, the government will provide 4% interest subsidy, while for housing loans of up to Rs12 lakh, a 3% interest subsidy will be granted.
Under the existing Pradhan Mantri Awas Yojana, 33% more houses will be constructed.
For the rural poor, and lower middle income classes, Similarly, to construct new houses or expand existing houses they will get an interest subsidy of 2% for loans up to Rs2 lakh.
The PM has also announced two-month interest waiver scheme for formers who have availed loans from cooperative societies -district, central and primary cooperative societies. Similarly, for the farmers another Rs20,000 crore loan will be provided through NABARD.
Nearly 30 million Kisan credit cards will be converted into Rupay cards so that farmers can withdraw money from ATMs.
The PM has also announced enhanced credit guarantee for MSMEs. At present, the credit gruarantee provided by the government is for up to Rs 1 crore and this has been raised to Rs2 crore.
Another set of measures were announced by the PM for pregnant women. For them, to reduce maternal mortality, Rs6,000 will be transferred to their accounts in all 650 districts of the country so that they can cover nutrition and other expenditures.
For senior citizens who may see an erosion of income with falling savings rates, the PM announced guaranteed 8% interest for 10 years for savings of up to Rs7.5 lakh.
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