New Delhi. Relief news has emerged for lakhs of families dreaming of buying their own house. The Central Government is working on such a proposal under the Pradhan Mantri Awas Yojana (PMAY) 2.0, through which eligible people can get the benefit of interest subsidy of up to 4 percent on home loans.
If this system is implemented, buying a home may become more affordable than before, especially for low and middle income group (LIG and MIG) families. The aim of the government is to provide relief to the common people amidst rising property prices and expensive home loans and to provide their permanent home to more and more families.
What is the proposal?
Under the scheme, preparations are being made to provide 4 percent interest subsidy on the first portion of home loan up to Rs 8 lakh to the eligible beneficiaries. This benefit can be given for a maximum period of 12 years. It is estimated that an eligible family can get a total benefit of up to Rs 1.80 lakh from this. The subsidy will be directly adjusted in the loan account of the beneficiary, thereby reducing the principal amount and the monthly EMI burden.
Who can get the benefit?
The benefit of the proposed scheme is designed to be extended mainly to those families who are first time home buyers and fall within the prescribed income limit. Apart from this, some other conditions may also apply, such as:
There should not already be a permanent house in the name of the family.
Annual income should be within the eligibility limit set by the government.
The benefit of the scheme is available only on houses up to the prescribed price limit.
Interest subsidy will be applicable only on home loans up to the prescribed limit.
The final eligibility conditions related to the scheme will be clear after the release of the official notification of the government.
Middle class will get big relief
Due to increase in house prices and home loan interest rates over the past few years, it has become difficult for many families to buy a house. In such a situation, if 4 percent interest subsidy is applicable, then it may be easier to decide to buy a house due to lower EMI. Experts believe that first-time home buying families can benefit the most from this.
final decision still pending
At present, this system related to 4 percent interest subsidy on home loans is part of the proposed preparation of the government. All the rules, eligibility and implementation process of the scheme will become clear only after the official announcement and guidelines of the Central Government are issued. If this scheme is implemented, it can prove to be a big step towards realizing the dream of millions of families of buying their own home with low EMI, interest savings and government assistance.
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