Your monthly home Loan instalment or EMI for a new property will come down by around Rs 2,000 if you are buying your first home in a city or town under the PM Awas Yojana (PMAY) and if your annual household income is in the range of Rs 12-18 lakh.
The government is offering an interest subsidy of 3-4% on borrowings of Rs 9 lakh to Rs 12 lakh even if the overall loan is higher. Loans availed from January are entitled to the subsidy announced by PM Narendra Modi as a part of the post demonetisation package.
On Wednesday, 70 lending institutions including 45 housing finance companies, 15 scheduled banks, and regional rural and cooperative banks signed MoUs with National Housing Bank for implementation of the scheme for the middle class in urban areas.
Union Housing and Urban Development Minister M Venkaiah Naidu said that middle-income groups (MIGs) make a substantial contribution to the economic growth of the country besides paying taxes and deserved support to fulfill the dream of owning a house which is a basic and genuine aspiration. He urged banks and other lending institution to adopt a pro-active approach to delivering the benefits to the people.
The benefits will be extended to families as comprising of wife, husband and unmarried daughters and son. Moreover, unmarried and earning young adults buying their first house will be eligible to avail the benefit.
Though PM Narendra Modi had announced these subsidies on December 31st to meet the aspiration of owning a pucca house for the tax paying large middle class. The operational guidelines could not be notified because of election code of conduct.
PM had announced interest subsidy of 4% on Housing Loans of up to Rs 9 lakh of those with an annual income of Rs 12 lakh and of 3% on housing loans of up to Rs 12 lakh of those earning Rs 18 lakh per year.
“Those who have been sanctioned housing loans and whose applications are under consideration since January first this year are also eligible for interest subsidy, informed a ministry official to Times of India.
As per the scheme, the tenure of loan has been stipulated to be 20 years or that preferred by the beneficiary, whichever is lower. The total interest subsidy accruing on these loan amounts will be paid to the beneficiaries upfront in one go thereby the burden of EMI. Prime Minister Narendra Modi had announced an interest subsidy of 4% on housing loans of up to 9 lakh for those with an income of Rs 12 lakh a year. The loan tenure is up to 20 years. The total interest subsidy will be paid up front in one go, reducing the EMI burden.
Source Times Of India, Indian Express
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