Pradhan Mantri Awas Yojana Loan upto 9 Lakhs gets 4% Interest Subsidy Discount
On the New Year’s Eve, PM Modi addressed the nation. He opened his sack of goodies that will help India to usher into a new era of development and better quality of life for people belonging to every section of the society.
The speech was live telecast across the nation and even nightclubs, bars and restaurants were instructed to telecast the speech. In his speech, Modi covered various aspects of the society and talked about incentives for agricultural sector, manufacturing sectors, senior citizens and even social security scheme for pregnant women.
Apart from that, he also talked about affordable living and housing problems that have plagued the entire nation for over 60 years since independence.
4% Interest Subvention for Home Loans Up To 9 Lakhs
PM Modi took a hardline against the previous governments led by the current opposition party – Indian National Congress and stated in his speech that after more than 60 years of independence, millions of poor and middle class Indians do not have their own house to live in. On one hand when people don’t have a shelter that they can call their own home, PM Modi said that people on other hand amassed black money. The filthy game of money hoarding made houses out of reach of common middle class.
Modi said that in order to deal with this problem, Pradhan Mantri Awaas Yojana was launched. Now, post demonetization, the government wants to increasing housing purchase in both rural as well as urban areas.
Because of demonetization, the nation will experience a price correction of properties and in addition to that, the supply of houses will be increased significantly by the Pradhan Mantri Awaas Yojana. This will allow middle class people to purchase new houses.
To give the demand a boost, the government announced 4% interest subvention for home loans for up to 9 lakhs. Simply put, the government will provide interest subsidy of 4% for any housing loan that is taken under the Pradhan Mantri Awaas Yojana. The important thing to note here is that the loans that were taken in 2016 will not get this subsidy. New loans that will be taken in year 2017 will enjoy this interest subsidy.
In order to introduce this interest subsidy, the government actually created two new middle income groups in the existing Awaas Yojana. The new categories that are created are meant for the urban areas of the country.
The government is hopeful that with this interest subsidy, the demand for new houses will be pushed up, thereby balancing the extra supply which will be generated under the Pradhan Mantri Awaas Yojana.
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