Centre Planning to Offer Home Loans for As Low As 6 Percent Interest Rate
May 23, 2017 Home Loan
Thanks to the demonetization drive, all the leading banks in the country are now abundantly full with cash. People having custody of old 500 and 1000 rupee notes thronged to their banks after the demonetization was announced, as a result, banks have witnessed a considerable rise in their deposits and cash reserves. In order to reap more benefits out of this situation, the NDA government at the centre is all set to announce a string of housing schemes to woo potential home buyers, subsequently lifting the spirits in the real estate sector.
A large amount of deposits in banks has given the government a window of opportunity to offer home loans at a cheaper rate and it is expected that the government will further clarify its intentions in the upcoming union budget.
Speculators expect a horde of pro-public measures in this fiscal’s union budget. It is expected that FM Arun Jaitley may announce a new housing scheme to promote housing in lower to middle income groups. As part of the housing scheme, the government might offer home loans for as low as 6 to 7 percentage points. Home loans for first time home buyers with up to 50 lakh amount are most likely to be included in the said scheme. Several private players have also jumped into providing cheaper home loans with Tata Capital also announcing an affordable housing scheme under which they aim to offer home loans for as low as 4 percent.
Slowly yet gradually, the government has been moving forward by announcing a string of affordable housing schemes to promote housing, especially in the rural areas to achieve its ambitious target of providing housing for all by 2022. In his address to the nation on the event of the new year, PM Narendra Modi announced several measures that the government aims to implement as part of the Pradhanmantri Awaas Yojana (PMAY). Under the PMAY,
1.In order to promote housing in rural areas, the centre plans to increase the building of houses in rural sector by 33 percent.
2.As part of the new interest subsidy scheme, loans up to 9 lakh rupees will get interested subsidy of 4 percent while loans up to 12 lakh rupees will get 3 percent subsidy against home loan interest.
3.For loans not more than 2 lakh taken in rural areas against building/renovating homes, a 3 percent interest subsidy will be offered.
The government’s wish to offer cheaper home loans will certainly give a new hope to all potential home buyers out there which will eventually lift the spirits in the Indian realty sector.
A large amount of deposits in banks has given the government a window of opportunity to offer home loans at a cheaper rate and it is expected that the government will further clarify its intentions in the upcoming union budget.
Speculators expect a horde of pro-public measures in this fiscal’s union budget. It is expected that FM Arun Jaitley may announce a new housing scheme to promote housing in lower to middle income groups. As part of the housing scheme, the government might offer home loans for as low as 6 to 7 percentage points. Home loans for first time home buyers with up to 50 lakh amount are most likely to be included in the said scheme. Several private players have also jumped into providing cheaper home loans with Tata Capital also announcing an affordable housing scheme under which they aim to offer home loans for as low as 4 percent.
Slowly yet gradually, the government has been moving forward by announcing a string of affordable housing schemes to promote housing, especially in the rural areas to achieve its ambitious target of providing housing for all by 2022. In his address to the nation on the event of the new year, PM Narendra Modi announced several measures that the government aims to implement as part of the Pradhanmantri Awaas Yojana (PMAY). Under the PMAY,
1.In order to promote housing in rural areas, the centre plans to increase the building of houses in rural sector by 33 percent.
2.As part of the new interest subsidy scheme, loans up to 9 lakh rupees will get interested subsidy of 4 percent while loans up to 12 lakh rupees will get 3 percent subsidy against home loan interest.
3.For loans not more than 2 lakh taken in rural areas against building/renovating homes, a 3 percent interest subsidy will be offered.
The government’s wish to offer cheaper home loans will certainly give a new hope to all potential home buyers out there which will eventually lift the spirits in the Indian realty sector.
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