Homebuyers desirous of purchasing real estate under any development authority will soon have some good news according to reports. They can get benefits of approximately Rs. 2.3 lakhs for buying homes under the PMAY (Pradhan Mantri Awas Yojana). This will soon undergo modification to cover all those properties which fall under development authorities inclusive of port authorities, villages and industrial corridors. These will also include development authorities present in coastal cities.
These changes will be implemented after several people issued complaints about banks not approving applications for loans under PMAY in specific urban zones. Authorities like the chemical, seaport and other authorities will also be eligible for the PMAY scheme in the future as per reports. As per the present guidelines, statutory towns under the 2011 Census and those notified by state governments can be covered under PMAY. The Census covers 4,000+ such towns. Banks are reluctant when it comes to offering interest subsidies for those towns that do not have a listing amongst the roughly 4,300 towns.
As per the PMAY scheme, the central government will provide interest subsidies going up to 4% for loans up to Rs. 9 lakh in case of people with household income going up to Rs. 12 lakh. In case of those with housing income up to Rs. 18 lakh, interest subsidy of 3% will be given for loans up to Rs. 12 lakh. There is interest subvention of around 6.5% on loans up to Rs. 6 lakh for homebuyers belonging to the EWS (economically weaker section) and low income groups who earn lower than Rs. 6 lakh annually.
The buyer will receive the whole benefit upfront. Till sometime earlier, carpet area restrictions were major disincentives indeed and several developers and buyers were of the opinion that this was an artificially placed limit. The carpet area was scaled up by the Government to 120 square metre from 90 square metre under MIG-I and it was increased to 150 square metre from 110 square metre under MIG-2. The subsidy of up to Rs. 2.30 lakh and Rs. 2.35 lakh for MIG category 2 and MIG 1 respectively will now be available till March, 2019.
