How Helpful Is the Government’s Home Loan Subsidy Scheme
Jun 02, 2017 Home Loan
The government has recently announced the credit link subsidy scheme (CLSS) for the buyers of the middle income group (MIG) under the Pradhan Mantri Awas Yojana. The government has allocated Rs 1000 crore this year for the credit link subsidy scheme for the middle class group.
The question about how it will be of the benefit to the buyers is rising. We discuss the same here.
Eligibility:
All the middle class buyers with the annual income of 6 lakhs to 18 lakhs per annum are eligible for the interest subsidy on the housing loan under Pradhan Mantri Awas Yojana.
Benefit:
An interest subsidy of 4 percent will be provided to the buyers with a loan up to Rs 9 lakhs and annual income less than 12 lakhs. Interest subsidy of 3 percent will be provided to the loan lenders with a loan amount of up to Rs 12 lakhs and earn up to 18 lakhs per year.
The housing loans more than 9 lakhs and 12 lakhs are excluded from the scheme.
The credit link subsidy scheme is applicable for all the loans taken within the mentioned amount, from 1st Jan 2017.
Home loan subsidy will be provided for both the construction and purchase of the house with the carpet area of 90 sq m for the home buyers with the annual income of Rs 9 lakhs and 110 sq m for the home buyers with the annual income up to Rs 18 lakhs.
Loan Tenure:
The loan tenure can be as long as 20 years and as minimum as the buyer wishes.
Additional charges:
The government has excluded all the processing fees for the same. All the banks have been asked to exempt the processing fees for the loan applicants under CLSS.
EMI reduction:
The subsidy scheme will considerably reduce the monthly EMI for the loan lenders thereby reducing the loan burden. Interest subsidy of 4 percent will reduce the monthly EMI by Rs 2,062 for the home loans up to 9 lakhs. The interest subsidy of 3 percent will reduce the monthly EMI by Rs 2,019 for the home loan of Rs 12 lakhs.
Who will be benefited?
The credit link subsidy scheme will be of huge benefit to women with extra preference to widows, single mothers, working women, people of scheduled class and scheduled tribe, other backward classes, differently abele people and transgender.
Nodal Agencies:
NHB and Housing and urban development corporation (HUDCO) has been assigned as the nodal agency for the same. EWS/LIG will be reimbursing the interest subsidy to the primary lending institute.
The question about how it will be of the benefit to the buyers is rising. We discuss the same here.
Eligibility:
All the middle class buyers with the annual income of 6 lakhs to 18 lakhs per annum are eligible for the interest subsidy on the housing loan under Pradhan Mantri Awas Yojana.
Benefit:
An interest subsidy of 4 percent will be provided to the buyers with a loan up to Rs 9 lakhs and annual income less than 12 lakhs. Interest subsidy of 3 percent will be provided to the loan lenders with a loan amount of up to Rs 12 lakhs and earn up to 18 lakhs per year.
The housing loans more than 9 lakhs and 12 lakhs are excluded from the scheme.
The credit link subsidy scheme is applicable for all the loans taken within the mentioned amount, from 1st Jan 2017.
Home loan subsidy will be provided for both the construction and purchase of the house with the carpet area of 90 sq m for the home buyers with the annual income of Rs 9 lakhs and 110 sq m for the home buyers with the annual income up to Rs 18 lakhs.
Loan Tenure:
The loan tenure can be as long as 20 years and as minimum as the buyer wishes.
Additional charges:
The government has excluded all the processing fees for the same. All the banks have been asked to exempt the processing fees for the loan applicants under CLSS.
EMI reduction:
The subsidy scheme will considerably reduce the monthly EMI for the loan lenders thereby reducing the loan burden. Interest subsidy of 4 percent will reduce the monthly EMI by Rs 2,062 for the home loans up to 9 lakhs. The interest subsidy of 3 percent will reduce the monthly EMI by Rs 2,019 for the home loan of Rs 12 lakhs.
Who will be benefited?
The credit link subsidy scheme will be of huge benefit to women with extra preference to widows, single mothers, working women, people of scheduled class and scheduled tribe, other backward classes, differently abele people and transgender.
Nodal Agencies:
NHB and Housing and urban development corporation (HUDCO) has been assigned as the nodal agency for the same. EWS/LIG will be reimbursing the interest subsidy to the primary lending institute.
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