From Jan 1 Interest Subsidy on the Home Loans Applicable
May 24, 2017 Home Loan
2017 is so far looking good and promising for the real estate sector. Banks have reduced their interest rates due to the cash overflow in their vaults after demonetization. Some very strict and much needed laws like RERA, REITs, GST are going to be enforced this year. And to add to the advantage of buying property, the Modi government has declared interest subsidy on the home loans from Jan 1.
Anyone who has an annual income of less than Rs 18 lakhs is eligible for interest subsidy of 3-4 percent.
The benefit of the subsidy can also be availed by unmarried and youth who are earning to invest in property or to construct or renovate a property including the repurchase. Also, the flats measuring up to 960 sq. ft. to 1184 sq. ft. will be eligible for 3 percent and 4 percent interest subsidy, depending on the income group.
According to the sources, the government has finalised the decision but haven’t yet announced it due to the election code of conduct. The ministry had a meeting with the banks and housing finance companies where the operational guidelines for the credit linked to the subsidy scheme for the middle income group were discussed.
The housing ministry has proposed the rebate of 4 percent on the loans up to Rs 9 lakhs and this can be availed by those who earn up to Rs 12 lakhs annually. A rebate in the interest rate of 3 percent is proposed for the individuals earning more than Rs 18 lakhs on the interest of loan up to Rs 12 lakhs.
Government’s efforts are in full swing to help revive the real estate sector in India. For past couple of years, the sector has been cold with not enough sales. Developers are looking forward to selling their unsold inventory through the following moves. Banks and housing finance companies are helping in the same. The home loan rates have reduced considerably and are the lowest in past six years.
Anyone who has an annual income of less than Rs 18 lakhs is eligible for interest subsidy of 3-4 percent.
The benefit of the subsidy can also be availed by unmarried and youth who are earning to invest in property or to construct or renovate a property including the repurchase. Also, the flats measuring up to 960 sq. ft. to 1184 sq. ft. will be eligible for 3 percent and 4 percent interest subsidy, depending on the income group.
According to the sources, the government has finalised the decision but haven’t yet announced it due to the election code of conduct. The ministry had a meeting with the banks and housing finance companies where the operational guidelines for the credit linked to the subsidy scheme for the middle income group were discussed.
The housing ministry has proposed the rebate of 4 percent on the loans up to Rs 9 lakhs and this can be availed by those who earn up to Rs 12 lakhs annually. A rebate in the interest rate of 3 percent is proposed for the individuals earning more than Rs 18 lakhs on the interest of loan up to Rs 12 lakhs.
Government’s efforts are in full swing to help revive the real estate sector in India. For past couple of years, the sector has been cold with not enough sales. Developers are looking forward to selling their unsold inventory through the following moves. Banks and housing finance companies are helping in the same. The home loan rates have reduced considerably and are the lowest in past six years.
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