Modi’s Housing Loan Interest Subvention Lead to an Upswing in Low Cost Housing
May 19, 2017 Home Loan
Demonetization is the new hot topic to talk about these days. Real Estate sector is mostly and majorly affected by this step taken by our Prime Minister, Narendra Modi. However, this move said to be beneficial for the real estate arena for the year 2017. The government recently decided to on an interest subvention of three percent and four percent for all the loans up to twelve lakhs and nine lakhs respectively. Under the Prime Minister Awas Yojna i.e. PMAY, it is said to enhance the housing of the lower income group. This interest relief that was announced for all the loans up to the amount of twelve lakhs for houses in the urban areas will also help in achievement of the ‘Housing
for All’ vision.
For the building or for expansion of house in the rural areas, the government has provided a subvention of three percent for the loans up to the amount of two lakhs. The government is also working on expanding the number of houses to be built in the rural regions under the PMAY by almost 33 percent.
This move will help in boosting of the mass housing in the peripheral areas of all the eight metropolitan cities. Locations such as the Noida extension, Daruhera, Yamuna expressway, Neemrana, and Bhiwadi will witness a hike in the demand for homes as most of the houses require an average loan ranging from Rs 10 to 12 lakhs. There will also be a boost in the outskirts markets of Bangalore, Hyderabad, Mumbai, Chennai, Pune and Ahmedabad.
In the vision of ‘Housing For All by 2022’ by the Prime Minister, the government has so far already announced a list of benefits including an interest subsidy of almost Rs 2.2 lakh for the homebuyers.
Many other steps are being taken which are directed towards the Housing for All initiative, such as making EMI cheques smaller than rent cheques. It is to ensure that the small businessmen and the middle class salaried home buyers are able to own a house of their own and move out of their rented houses. Under our government’s currently pertaining credit linked subsidy policy, beneficiaries of the EWS i.e. the economically weaker sections and the LIGs i.e. the lower income groups looking for housing loans are only eligible for a subsidy on interest at the rate of almost 6.5 percent for a time span of 15 years or for the tenure of the loan, depending on whichever is lower on an initial Rs 6 lakhs.
This interest subvention is a great move for providing housing to all level of people and to make the ‘housing for all’ mission a success.
for All’ vision.
For the building or for expansion of house in the rural areas, the government has provided a subvention of three percent for the loans up to the amount of two lakhs. The government is also working on expanding the number of houses to be built in the rural regions under the PMAY by almost 33 percent.
This move will help in boosting of the mass housing in the peripheral areas of all the eight metropolitan cities. Locations such as the Noida extension, Daruhera, Yamuna expressway, Neemrana, and Bhiwadi will witness a hike in the demand for homes as most of the houses require an average loan ranging from Rs 10 to 12 lakhs. There will also be a boost in the outskirts markets of Bangalore, Hyderabad, Mumbai, Chennai, Pune and Ahmedabad.
In the vision of ‘Housing For All by 2022’ by the Prime Minister, the government has so far already announced a list of benefits including an interest subsidy of almost Rs 2.2 lakh for the homebuyers.
Many other steps are being taken which are directed towards the Housing for All initiative, such as making EMI cheques smaller than rent cheques. It is to ensure that the small businessmen and the middle class salaried home buyers are able to own a house of their own and move out of their rented houses. Under our government’s currently pertaining credit linked subsidy policy, beneficiaries of the EWS i.e. the economically weaker sections and the LIGs i.e. the lower income groups looking for housing loans are only eligible for a subsidy on interest at the rate of almost 6.5 percent for a time span of 15 years or for the tenure of the loan, depending on whichever is lower on an initial Rs 6 lakhs.
This interest subvention is a great move for providing housing to all level of people and to make the ‘housing for all’ mission a success.
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