Union Budget 2013: Fund set up boost affordable urban housing

NEW DELHI: Considering the huge shortage of affordable housing in cities and towns leading to growth of slums, the government announced setting up of an Urban Housing Fund to refinance banks and financial institutions for retail loans in urban areas.
The plan is to mitigate the huge housing shortage and ensure availability of loans for those living in slums by setting up a dedicated fund with an initial allocation of Rs 2,000 crore in 2013-14.
The fund will be set up by the National Housing Bank and will help in creation of affordable houses and bridging the massive shortage of 18.78 million houses of which 96% are in low income group and economically weaker section categories.
Housing shortage in the affordable category has piled up as private developers are reluctant to construct LIG and EWS houses and lack of credit facilities for the urban poor is leading to growth of slum clusters in cities and towns.
According to experts, the fund will ensure flow of money in the urban housing segment and boost demand.
To give a boost to affordable housing, the budget proposed an additional deduction of interest of up to 1 lakh for homebuyers taking a loan for a first home of up to Rs 25 lakh.
Union Budget 2013
Budget news 2013 ​
Economic Survey