Friday, February 16, 2018
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Only 2.5 percent interest Rate Home Loan – Prime Minister Awas Yojana

Prime Minister Awas Yojana If  you are planning to buy  your first home then you can have various benefits on your home loans.Government has announced more subsidy for first-time home buyers in the higher income brackets about 10 days after the 2017-18 Union Budget.

If your income is in slab  of Rs 6 lakh per annum, get a subsidy of 6.5 percentage points on a principal component of Rs 6 lakh, irrespective of their total loan amount. Suppose you borrowed Rs 20 lakh for buying a house at 9 percent per annum, you will have to pay only 2.5 percent interest on Rs 6 lakh. On Rs 14 lakh, you will be required to pay 9 percent interest.

Under the extension of income slabs for giving subsidy to first-time home buyers, the government has announced two new slabs. The new slabs will apply to loans with tenure of up to 20 years.

The subsidy has been extended to those in the income slab up to Rs 12 lakh per annum  and Rs 18 lakh per annum.Now, people earning up to Rs 12 lakh per annum will get interest subsidy of 4 percentage points on a principal amount of Rs 9 lakh. Those earning up to Rs 18 lakh per annum will be given a subsidy of 3 percentage points on a principal component of Rs 12 lakh.

In the next bracket, people earning up to Rs 12 lakh per annum will get interest subsidy of 4 percentage points on a principal component of Rs 9 lakh, and the highest income category of Rs 18 lakh per annum will get a subsidy of 3 percentage points on a principal component of Rs 12 lakh.

People under all three categories will enjoy a benefit of Rs 2.4 lakh (assuming an interest rate of 9 percent per annum) and monthly installment on home loan is likely to be reduced by roughly Rs 2,200, the report says.  The government has signed MoU with 70 lending institutions for providing home loans to beneficiaries under CLSS for MIG.

The loan is available only for the first house and the house purchased should not be over 60 sq meters or 643 sq ft for household income up to Rs 6 lakh a year. It is 90 sq meters (965 sq ft) in carpet area for people in the income bracket of Rs 6-12 lakh. For income group more than of Rs 12-18 lakh, the maximum size of the house should be 120 sq meters or 1,287 sq ft. For this scheme, the annual family income will be income of husband, wife, unmarried sons and unmarried daughters.

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