After the surprising demonetization move by Prime Minister Narendra Modi, most of the Indians were eagerly waiting for his speech on the New Year’s Eve. He addressed the keen audience in his regular manner but surprised them with his new interest rebate policy towards the end. He added a new scheme in his Pradhan Mantri Awas Yojana. According to this scheme, people who are seeking home loan up to Rs.9 lakhs would get a 4% rebate on interest rates. Additionally, he also announced that those who are looking for a home loan up to Rs.12 lakhs would get an interest subsidy of 3%. This move is to ensure the smooth working of the Pradhan Mantri Awas Yojana so as to achieve its “Housing for All by 2022” goals.
Let us read on to find out what this scheme is all about and who can benefit from it.
What Is Pradhan Mantri Awas Yojana
The main question that hovers over the mind after reading this scheme is what this yojana actually is. In simple terms, it is a housing scheme offered by Prime Minister Narendra Modi to provide housing facility to all the people belonging to the Lower Income Group (LIG) or Economically Weaker Section (EWS) by the end of 2022. This scheme would help these economically backward people to buy their house at a subsidized interest rate for bank loans.
You can enjoy a 6.5% cut in the interest rate annually if you are applying for a loan of up to Rs.6 lakhs according to this yojana. Let’s find out what the latest updates are according to PM Narendra Modi.
What Is The Latest Update In This Yojana
PM Modi, on the eve of New Year, addressed the eagerly waiting audience with his speech. People were enamored by his speech where he announced the increased subsidy rates in his Pradhan Mantri Awas Yojana. He added two new middle income categories in his Awas Yojana where people were applying for loan in any of the urban cities. These are discussed below.
- For Loan Up To Rs.9 Lakhs: People seeking home loan for up to Rs.9 lakhs would now get an added subsidy of 4% according to PM Modi. For example, if you were taking a loan of Rs.9 lakhs and the interest rates are 10% then you can avail this benefit and get the loan at an interest of 6% only.
- For Loan Up To Rs.12 Lakhs: For those seeking a home loan of up to Rs.12 lakhs can now avail this benefit and get a rebate on the interest rate of 3%. For example, if you were taking a loan of Rs.12 lakhs and the interest rates are 8% then you can opt for this scheme and get the loan at an interest of 5% only.
In order to avail home loan under the Pradhan Mantri Awas Yojana, you should be applying for a fresh loan and none of your family members should be in possession of a house (members include husband, wife and unmarried children). This recent update in the policy is like a New Year gift to all the lower and middle income earning groups. The conditions like the tenure of 15 years, interest subsidy only up to the mentioned amount, annual income of up to Rs.18 lakhs etc., would remain constant even after this latest update.