Post-demonetization benefits are coming to the people in different forms. As per a recent announcement, the government is offering 3-4% interest subsidy onhome loan of Rs 9 lacs to 12 lacs, which will reduce the EMI by Rs 2,000 approximately. You can avail this benefit if you are buying a new property in an area that comes under Pradhan Mantri Awas Yojna (PMAY); your annual household income needs to be in the range of 12-18 lacs.
This is a step to encourage middle-class people in urban areas to buy their dream home. The benefits can be availed by families comprising of wife, husband and unmarried children as well as by the unmarried and earning young adults who want to buy their first-home in an urban location.
The home loan tenure to avail the benefits under the scheme is stipulated at 20 years or as per the buyer’s convenience, whichever is lower. The total interest subsidy will be paid to the buyers in one go which will reduce the EMI burden.
Considering the normal home loan interest rate at 8.65%, interest subsidy of 4% on a loan of 9 lacs will bring down the EMI by Rs 2,062 per month, and for a loan of Rs 12 lacs, the interest subsidy will be Rs 2,019 per month the rate of 3%.
On 22nd March, 2017, 70 lending institutions including scheduled banks, regional rural and cooperative banks and housing finance companies signed a Memorandum of Understanding (MoU) with the National Housing Bank (NHB) for the implementation of the scheme. Though PM Modi had already announced the scheme on 31st December, the operational guidelines could not be publicly notified due to the ongoing election code of conduct.
Urban Development Minister Venkaiah Naidu, when speaking about the scheme, said that the urban middle class population is a major contributor to the overall growth of Indian economy and they should not be deprived of a basic and genuine aspiration like a house. He also urged banks and financial institutions to be proactive in delivering the benefits of this scheme to the people.
Those who have been sanctioned home loans and whose applications are under consideration since 1st January, 2017 are also eligible for interest subsidy.
Read more about……Your First Home Will Now Cost Rs 2.4 Lacs Less