New Interest Subsidy Scheme Set to Benefit Lower and Middle Income Groups
May 19, 2017 Real Estate News
Continuing its efforts to provide housing for all, the union government, led by PM Narendra Modi, has announced an interest based subsidy scheme for home loans. Although the details are still to be notified by the centre, the middle class is expected to benefit from the sops announced by PM. People having annual income up to Rs 12 lakh will now be benefited with a 4 percent rebate in interest against home loans not exceeding Rs 9 lakh while those having a yearly income between 12 to Rs 18 lakh can avail a 3 percent rebate in interest for home loans.
As per the soon to be implemented interest subsidy scheme, it is expected that the government will release the entire interest subsidy amount beforehand, eventually helping home buyers to arrange funds to make the initial payment.
Sources close to the government confirm that the centre has been working on a plan to boost home sales among lower as well as middle income groups. Speculations are rife that the new interest subsidy scheme will be rolled out soon and an initial amount of Rs. 1000 crore is already kept aside for meeting the expenses of the said scheme.
The new interest subsidy scheme is surely an upgrade on the existing interest subsidy scheme and aims to cover a large section of the population boosting their chances of buying a home in the process. Under the current scheme, those having annual income up to Rs 6 lakh were eligible to avail 6.5 percent interest subsidy for home loans not exceeding 6 lakh rupees. However, statistics suggest only 20 thousand people have taken benefit of this scheme so far.
Home buyers will be able to take advantage of the new subsidy scheme while applying for a fresh loan under the union government’s Pradhan Mantri Awas Yojna (PMAY). Moreover, the said scheme will be eligible only for first time home buyers. So, you are not eligible for interest subsidy if you already own a house anywhere in the country. The new norms aim to cover a large section of the population under the interest subsidy scheme, thereby helping the government to achieve its ambitious target of providing housing for all by the year 2022.
As per the soon to be implemented interest subsidy scheme, it is expected that the government will release the entire interest subsidy amount beforehand, eventually helping home buyers to arrange funds to make the initial payment.
Sources close to the government confirm that the centre has been working on a plan to boost home sales among lower as well as middle income groups. Speculations are rife that the new interest subsidy scheme will be rolled out soon and an initial amount of Rs. 1000 crore is already kept aside for meeting the expenses of the said scheme.
The new interest subsidy scheme is surely an upgrade on the existing interest subsidy scheme and aims to cover a large section of the population boosting their chances of buying a home in the process. Under the current scheme, those having annual income up to Rs 6 lakh were eligible to avail 6.5 percent interest subsidy for home loans not exceeding 6 lakh rupees. However, statistics suggest only 20 thousand people have taken benefit of this scheme so far.
Home buyers will be able to take advantage of the new subsidy scheme while applying for a fresh loan under the union government’s Pradhan Mantri Awas Yojna (PMAY). Moreover, the said scheme will be eligible only for first time home buyers. So, you are not eligible for interest subsidy if you already own a house anywhere in the country. The new norms aim to cover a large section of the population under the interest subsidy scheme, thereby helping the government to achieve its ambitious target of providing housing for all by the year 2022.
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