PRADHAN MANTRI AWAS YOJNA: HOUSING FOR ALL: SUBSIDY ON LOAN INTEREST FULL DETAIL

THERE IS A VERY GOOD NEWS FOR THE HOME SEEKERS, CENTRAL GOVERNMENT HAS ANNOUNCED EVEN MORE SUBSIDY IN HOME LOAN INTEREST RATES UNDER PRADHAN MANTRI AWAS YOJANA. PRIME MINISTER NARENDRA MODI ANNOUNCED THE INTEREST SUBSIDY ON HOUSING LOANS TAKEN UNDER PRADHAN MANTRI AWAS YOJANA DURING HIS SPEECH TO THE NATION ON 31ST DECEMBER 2016.
THE AMOUNT OF HOME LOAN UNDER THE SCHEME HAS BEEN INCREASED BY DOUBLE TO 12 LAKH AND THE INTEREST SUBSIDY WOULD NOW BE UP TO 4%. BELOW IS THE INTEREST SUBSIDY COMPARISON OF EARLIER PMAY SCHEME AND REVISED SCHEME.

PMAY HOME LOANS INTERESTRATES/SUBSIDY FOR 2017

SUBSIDIES EXPLAINED	EARLIER SCHEME (2015) – CLSS FOR EWS/LIG	REVISED SCHEME (2017) – CLSS FOR MIG
LOAN AMOUNT	UP TO RS. 6 LAKH	UP TO RS. 9 LAKH	UP TO RS. 12 LAKH
ELIGIBILITY CRITERIA	EWS (ANNUAL INCOME OF UP TO RS. 3 LAKH) AND LIG (INCOME OF UP TO RS. 6 LAKH PER ANNUM). WOMEN TO BE THE CO-OWNER ALONG WITH THE BENEFICIARY.	MIG 1 – UP TO RS. 12 LAKH PER ANNUM	MIG 2 – UP TO RS. 18 LAKH PER ANNUM
SUBSIDY CALCULATION FOR A LOAN TENURE OF UP TO 15 YEARS	6.5%	4%	3%
SUBSIDY AMOUNT	RS. 2.2 LAKH FOR A LOAN OF 6 LAKH	RS. 2.35 LAKH FOR A LOAN OF RS 9 LAKH	RS. 2.3 LAKH FOR A LOAN OF RS. 12 LAKH
INTEREST RATES AND SUBSIDY
INTEREST RATE	10.5%	8.5%
LOAN AMOUNT	RS. 12 LAKH	RS. 9 LAKH OR MORE	RS. 12 LAKH OR MORE
AMOUNT ELIGIBLE FOR SUBSIDY	RS. 6 LAKH	RS. 9 LAKH	RS. 12 LAKH
SUBSIDY RATE	6.5%	4%	3%
SUBSIDY AMOUNT	2.2 LAKH	2.35 LAKH	2.3 LAKH

THE INCREASED LOAN AMOUNT UNDER THE PM AWAS YOJANA WILL SIGNIFICANTLY REDUCE THE MONTHLY INSTALLMENTS. THE CENTRAL GOVERNMENT INSTEAD OF 6.5% SUBSIDY ON LOANS UP TO RS. 6 LAKH, NOW PROVIDING 4% SUBSIDY ON LOANS UP TO RS. 9 LAKH AND 3% FOR HOME LOANS UP TO RS. 12 LAKH. THE LOANS UNDER PMAY CAN BE AVAILED FOR A MAXIMUM TENURE OF 20 YEARS (EARLIER 15). THE GOVERNMENT HAS ALSO INTRODUCED TWO NEW MIDDLE INCOME GROUP CATEGORIES UNDER THE SCHEME.