Popular Housing Loan Schemes at Best…
July 26, 2022
September 12, 2022
The Government of India, through the Ministry of Housing and Urban Affairs (MOHUA), launched the Pradhan Mantri Awas Yojana (PMAY) on June 25, 2015. The scheme aimed to ensure a pucca house for all eligible urban and rural households by 2022. The assessment and implementation of the program are done through local bodies such as state-level nodal agencies, Implementing agencies, Urban local bodies, etc., who compute the demand of the housing shortage in their respective zones. This scheme provides an opportunity for the citizens to avail of a home loan subsidy to purchase a property.
The Pradhan Mantri Awas Yojana aims to provide home loan subsidies to eligible citizens in the country. This program entails the following features:
The Pradhan Mantri Awas Yojana is a home loan subsidy scheme that aims to stimulate the affordability of houses in the country and cater to the humongous housing requirements. As the price of the real estate sector continues to soar throughout the country, the scheme’s beneficiaries can avail of the subsidized interest rates provided by the Government. The scheme is segmented into the Urban and Grahmin wings to provide a roof to the citizens throughout the country. This home loan subsidy scheme strives to construct 20 million homes across India.
Currently, the scheme envelops around 4,331 towns and cities in the country. The scheme covers all the urban planning and regulation boards, such as the urban development authority, industrial development authority, and notified planning. The scheme was designed to be implemented in three phases:
The Central Sanctioning and Monitoring Committee announced that the Government of India approved the construction of 1.68 Lakhs housing projects at their 52nd meeting on January 20, 2021. An amount of Rs 4,95,838 crores has been allocated to the scheme.
As the name suggests, the Pradhan Mantri Awas Grahmin Yojana was launched to stimulate the accessibility and affordability of housing projects in rural areas specifically for the impoverished. The scheme provided financial aid to the homeless and assistance to construct pucca houses for citizens in rural areas who inhabited deteriorating houses. The eligible beneficiaries can receive up to Rs 1.2 Lakhs, and the rural population residing in hilly areas can receive up to Rs 1.3 Lakhs. The government will bore the cost incurred in the construction of houses in rural areas in the following ratios:
The Government of India has sanctioned around 1,03,01,107 houses in every state and Union Territories according to the data provided by the Ministry of Rural Development.
The Pradhan Mantri Aawas Yojana was launched to provide affordable housing through home loan subsidies to eligible citizens.
The eligible citizens can avail of the home loan subsidy on interest provided by the Government of India under the Pradhan Mantri Awas Yojana. The following groups can avail of subsidized interest rates on their purchase of property:
The individual who falls under this group can avail of the subsidized interest rates on their home loan up to 6.5%. The borrower can avail of a loan of up to Rs 6 Lakhs on such subsidized rates. The home loan subsidy on interest is provided for the tenure or fifteen years (whichever is lower).
The eligible individual can avail home loan subsidy on interest up to 6.5%. According to the revised rules, they can avail of the maximum home loan subsidy amount of Rs 2.67 Lakhs for the loan tenure of 20 years.
The eligible applicants who fall under the MIG-1 segment can avail of a home loan subsidy of 4% per annum. The maximum tenure determined for the loan is 20 years.
The applicant who features under the MIG-2 group at a subsidized interest rate of 3% for up to Rs 12 Lakhs. The maximum subsidy amount is set at Rs 2.3 Lakhs, and the maximum tenure for the loan is 20 years.
|Criteria||EWS||Revised LIG||MIG- 1||MIG-2|
|Annual Household Income||up to 3 Lakhs||Rs 3-6 Lakhs||Rs 6-12 Lakhs||Rs 12 Lakhs-18 Lakhs|
|Subsidy on Interest||6.5%||6.5%||4%||3%|
|Home Loan Amount (Maximum)||Up to Rs 6 Lakhs||Up to Rs 6 Lakhs||Up to Rs 9 Lakhs||Up to Rs 12 Lakhs|
|Rs 2,20 Lakhs||Rs 2.67 Lakhs||Rs 2.35 Lakhs||Rs 2.30 Lakhs|
|Maximum Tenure on Subsidy||15 Years||20 Years||20 Years||20 Years|
|Carpet Area||30 Sq. meters||60 Sq. Meters||160 Sq. Meters||200 Sq. Meters|
|Validity||2022||2022||March 2020||March 2020|
|Nature of Beneficiary||First-time homeowner||First-time homeowner||First-time Homeowner||First-time homeowner|
|Net Present Value||9%||9%||9%||9%|
*The details mentioned above are subject to change as per the discretion of the Government of India.
The government aims to redevelop slums with the help of private developers; assistance of Rs 1,00,000 is provided to any city dwellers eligible to avail of the home loan subsidy scheme. The scheme is facilitated to cater to the housing requirements by utilizing the land as a resource component.
The citizens falling under the EWS category can avail of financial assistance from the central government up to 1.5 Lakhs to obtain a property. The development of such housing projects is overseen by State Governments and Union Territories with the help of private developers.
This is availed of by EWS families who cannot avail of the abovementioned benefits. They enhance and renovate their existing property with the financial assistance of Rs 1.5 Lakhs offered by the Central Government.
The home loan subsidy provided by the government offers the following benefits to its users:
The eligibility criteria set by the Government of India to avail of the home subsidy are as follows:
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