Home Loan Subsidy in India

It is a dream for almost everyone to own a home, but unfortunately, not everyone is capable of buying one. The good news is, you can get a home loan from different financial institutions, like agrimhfc, in the event that you cannot afford to buy a home upfront.

The Government of India launched PMAY or Pradhan Mantri Awas Yojana on June 25, 2015. This aims to give rural and urban households eligibility in securing a pucca house. This scheme offers an opportunity for people to get a home loan subsidy to buy a property.

Features Of The Home Loan Subsidy Under PMAY

This is made to provide opportunities for loan subsidies to qualified citizens in the country. This program includes the following:

• Provision of housing units that are equipped with electricity, toilets, and water.
• Provide enough physical infrastructure for the residents.
• Keep a good quality of life for the rural and urban poor.
• Give housing security to those who are eligible to avail of the scheme.
• The scheme also provides particular preference to the sectors of society that are susceptible, such as differently-abled individuals, SC, OBC, ST, and senior citizens.

PMAY- Home Loan Subsidy Schemes

This home loan subsidy aims to provide affordable houses in the country and to ensure that humongous housing requirements are catered to. As the price of the real estate sector continuously soars throughout India, the beneficiaries of the scheme can enjoy subsidized interest rates given by the government.

The scheme is divided into the Grahmin and Urban wings to give a rood to the citizens of India.

This home loan subsidy aims to build twenty million houses across India.

Credit Linked Subsidy Schemes

PMAY is launched to ensure that housing is affordable through subsidized home loans being given to eligible citizens.

The interest on such loan is provided by the Government of India, under the PMAY.

The following groups are qualified to get a home loan:

EWS (Economically Weaker Section) or LIG (Low Income Group) – Those who will fall under this group will pay an interest rate of up to 6.5%. The borrower can get up to Rs 6 Lakhs with a subsidized rate mentioned. The home loan on interest is given for tenure or 15 years, whichever is lower.

EWS (Revised Economically Weaker Section) or LIG (Low Income Group) – Those who will fall under this criterion will get a loan with an interest of up to 6.5%. According to the newly revised rule, the eligible borrower can avail of a maximum loan subsidy of Rs 2.67 Lakhs for a tenure of twenty years.

Middle Income Group (MIG-1) –  The applicants who will fall under this segment can get a loan subsidy of four percent per annum, with a maximum tenure of twenty years.

Middle Income Group (MIG-2) – Under this criterion, the applicant gets a subsidized interest rate of three percent for up to Rs twelve lakhs, and the minimum tenure of the loan is twenty years.  

Home Loan Subsidy Benefits

• The qualified citizen can get a loan subsidy on the loan’s interest rate
• Through the subsidy, it reduces the principal and the EMIs as the subsidized amount is directly transferred to the bank account of the beneficiary
• The tenure is up to twenty years, reducing the challenges of EMIs and making it easier to manage
• There is no limit on the loan amount
• It comes with many tax benefits