Modi Provides 3-4% Interest Subsidy on Houses under PMAY

On New Year’s Eve, India’s Prime Minister Narendra Modi has announced to provide interest subsidy of 3 to 4 per cent for loans up to Rs 12 lakh and Rs 9 lakh under the Prime Minister Awas Yojana (PMAY).

The above announcement can be a boon for the urban poor in Bengaluru as now they can own a house at approximately 30km from Vidhana Soudha for just Rs 12 lakh. Reportedly, more than 100 housing finance companies have signed memorandums of understanding (MoU) with the National Housing Bank (NHB). Now an eligible buyer can get interest subsidy from their lenders and finance company can help provide the subsidy amount to lenders.

In another announcement, PM Modi has decrease the EMI cheque amount which will be lesser than the rent cheque for affordable housing segment.

“Post demonetization, the affordable housing segment will get a much-needed boost as land prices will plummet in the next few months, especially in far-flung areas around Bengaluru, and tier-II cities,” says Bengaluru based builders.

According to an official from the state housing corporation, Attibele, Rajankunte and Hos kote are emerging as major hubs for value and budget housing.

Source: ET Realty

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