Interest Subsidy of Pradhan Mantri Awas Yojana (Urban) Beneficiaries

The Minister of State (Independent Charge) for Housring and Urban Affairs Shri Hardeep Singh Puri said in written reply in Lok Sabha on 6 February 2020 about the concession in interest rates on home loan as follows…

Government is implementing a Credit Linked Subsidy Scheme (CLSS) as one of the components of Pradhan Mantri Awas Yojana (Urban) [PMAY(U)] to provide interest subsidy for housing loans to eligible beneficiaries. The main featuresof CLSS are at Annexure – I.During the last three years 1,46,638 households have availed benefits under CLSS in Maharashtra.

S.No. | Particulars | EWS/LIG |

1. | Household Income (Rs. Per Annum) | Up to.3,00,000/- for EWS and between 3,00,001 to 6,00,000 for LIG |

2. | Interest Subsidy (% p.a) | 6.5% |

3. | Maximum loan tenure (in years) | 20 |

4. | Eligible Housing Loan Amount for Interest Subsidy (Rs.) | 6,00,000* |

5. | Dwelling Unit Carpet Area (Sq.mtr) | 30# / 60# |

6. | Discount Rate for Net Present Value (NPV) calculation for interest subsidy |
9% |

7. | Upfront Amount for Subsidy (approximately in Rs.) | 2,67,280 |

S.No. | Particulars | MIG-I |

1. | Household Income (Rs. Per Annum) | Between 600,001 upto 12,00,000 |

2. | Interest Subsidy (% p.a) | 4% |

3. | Maximum loan tenure (in years) | 20 |

4. | Eligible Housing Loan Amount for Interest Subsidy (Rs.) | 9,00,000* |

5. | Dwelling Unit Carpet Area (Sq.mtr) | Up to 160 |

6. | Discount Rate for Net Present Value (NPV) calculation for interest subsidy |
9% |

7. | Upfront Amount for Subsidy (approximately in Rs.) | 2,35,000 |

S.No. | Particulars | MIG-II |

1. | Household Income (Rs. Per Annum) | Between 12,00,001 upto 18,00,000 |

2. | Interest Subsidy (% p.a) | 3% |

3. | Maximum loan tenure (in years) | 20 |

4. | Eligible Housing Loan Amount for Interest Subsidy (Rs.) | 12,00,000* |

5. | Dwelling Unit Carpet Area (Sq.mtr) | Up to 200 |

6. | Discount Rate for Net Present Value (NPV) calculation for interest subsidy |
9% |

7. | Upfront Amount for Subsidy (approximately in Rs.) | 2,30,000 |

*Loans beyond this limit will be at non-subsidised rates.

The beneficiary, at his/her his discretion can build a house of larger area but interest subsidy would be limited to first Rs. 6 lakh only.

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Santosh kumar says

What is the latest Home loan/ Advance interest rate ?. Central Govt has reduced it from 7.9% as banks are offering at 6.8-7%.

M.K.KUMAR says

The rate of interest is 8.50% at simple interest rates (in place of earlier four slabs of bearing interest ranging from 6 to 9.50% for different slabs of HBA Rs.50,000/- to 7,50,000/- ranges.

Banks are charging for the full amount of loan recovered after interest. It is more than government charging interest and also recovered in service.