The current situation for easy home loans under the PMAY is as mentioned below –
- If you are a home buyer with a yearly income of less than Rs. 6 lakh, you are eligible for an interest subsidy of 6.5% on a principal amount of Rs. 6 lakh.
- If you are a home buyer with an annual income that lies in the range from Rs. 6 lakh and up to Rs 12 lakh, you will get an interest subsidy of 4% on home loans.
- If you are a homebuyer with an annual income ranging from above Rs 12 lakh but less than Rs 18 lakh, you can avail an interest subsidy of 3% on loans.
So, an individual with an income slab of less than Rs 6 lakh per year, borrowing Rs 20 lakh at an interest rate of 10% per annum, will need to pay an interest of 3.5% (10%-6.5%) on Rs 6 lakh and an interest of 10% on the remaining sum, as per the subsidy.
This new development by the Government, with a focus towards increasing the demand for real estate, will greatly promote easy home loans.
Besides the above, people under all these three income categories will get to avail a benefit of Rs 2.4 lakh, and a reduction of ₹2200 is also expected on the monthly installment on home loans. Another major extension brought about by the Government has been with respect to the EWS and LIG, as their loan terms increase from 15 to 20 years.
PMAY was initially introduced with a focus on the economically weaker section and the low income group, but has gone on to include the middle income group too. Having launched PMAY on 25th June, 2015, the Government desires to construct about 2 crore homes by 2022. The implementation of the home loan subsidy scheme is to be carried out by nodal agencies, namely – the NHB (National Housing Bank) and HUDCO.
