Low cost housing estimated to grow thanks to PM’s Housing Loan Interest

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The recent speech which our Prime Minister delivered on New Years Eve has some good points for the housing sector. There will most likely be a boost in the low income housing in some of the areas in our Urban localities across India.

Under the Prime Minister Awas Yojna a.k.a PMAY, loans up to Rs. 9 lakh will get an interest subvention of 4% while loans upto Rs. 12 lakh will gt an interest subvention of 3%.

Our PM has a vision which he calls the Housing for All. To achieve this vision the government has announced interest relief for loans in Urban areas for up to Rs. 12 lakh.

In additional to this, even the Rural areas have some good news. For loans up to Rs. 2 lakh a 3% subvention will be given for building or expanding their existing houses.

Also, under the same PMAY the government decided to increase the number of houses that are to be built by 33% in the rural areas, according to his speech on the eve of New Year.

On this, the President of CREDAI National, Getamber Anand said “This will provide a strong boost to mass housing in peripheral areas of all eight metro cities. Localities like Bhiwadi, Nimrana, Daruhera around Noida extension and Yamuna Expressway in the NCR region will see good demand for housing as average loan size for houses is between Rs 10-12 lakh. This will kick-start markets on the outskirts of Mumbai, Pune, Hyderabad, Bangalore, Ahmedabad and Chennai”

There will also be a interest subsidy of Rs. 2.2 lakh among various other benefits for homebuyers announced by the government under our Prime Minister’s vision of ”Housing for All by 2022”.

The beneficiaries of Economically Weaker Section, EWS for short and the Low Income Groups, LIG for short who are seeking loans for housing purpose are eligible for an interest subsidy at the rate of 6.5% for a duration of 15 years or during the entire tenure of the loan, whichever turns out to be lower on the Rs. 6 lakh initially. All under the existing credit-linked subsidy scheme of the government.