New Delhi: In a big relief to thousands of prospective home buyers, the Narendra Modi government at the Centre is planning to give a huge interest subsidy on home loans to those who fall in the low and middle-income group (MIG). According to reports, new home buyers from the low and middle-income groups (MIGs) in Noida and Greater Noida will now be eligible to get an interest subsidy of approximately Rs 2.5 lakh on their home loans under the Pradhan Mantri Aawas Yojna (PMAY) scheme.
It was earlier reported that thousands of home buyers in these two cities were being deprived of interest subsidy scheme. In view of those reports, the Uttar Pradesh government sent the names of these two towns in the National Capital Region (NCR) to the Ministry of Housing and Urban Affairs to be included in the list of urban areas where the subsidy scheme is applicable.
It was also reported that some other states too sent more names to the Ministry to be included in that list.
The Ministry of Housing and Urban Development has now allotted necessary codes for both Noida and Greater Noida townships and the same has been forwarded to the Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB).
The NHB is solely looking after the Pradhan Mantri Aawas Yojna (PMAY) Scheme.
The Centre's decision to give interest subsidy on home loans is likely to benefit thousands of prospective home buyers from the MIG category in these two townships, which are being developed at a rapid.
However, the buyers falling under this category will avail different rate for the subsidy on home loans.
The government had extended interest subsidy benefit to two sections of MIGs - 4% interest subsidy for buyers with annual income of Rs 6 lakh to 12 lakh and 3% interest subsidy for people having an annual income between Rs 12 lakh and Rs 18 lakh - starting January 2017.
Remember that the home buyer will not be eligible for this interest subsidy once their home loan gets sanctioned or they had made the initial payment.