Interest Subsidy Scheme

To improve the affordability of housing loans by EWS/LIG Segments in urban areas, Ministry of Housing and Urban Poverty Alleviation (MHUPA), Government of India introduced Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) Scheme on 26-12-2008. Under the Scheme, an interest subsidy of 5 percent per annum for whole duration of the loan (15 – 20years) is provided on loans up to 1.00 lakh extended to EWS/LIG beneficiaries by the Primary Lending Institutions (PLIs). The maximum loan amount was 1.00 lakh for a EWS individual and 1.60 lakh for a LIG individual. This Interest subsidy is provided on NPV and upfront basis. The Scheme was implemented through Primary Lending Institutions, viz. Banks and Housing Finance Companies. The Scheme envisaged the appointment of State Level Nodal Agencies (SLNA) by various States to facilitate the identification and selection of eligible beneficiaries for its effective implementation.

NHB and HUDCO are designated as the central Nodal Agencies (CNA) for implementation of the Scheme. NHB as Nodal Agency for the aforesaid Scheme had taken various measures to bring awareness through wider publicity, sensitization programmes and coordinating with various agencies for facilitating effective implementation of ISHUP. The Scheme ceased to exist on 30-09-2013.