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Home CURRENT AFFAIRS BUSINESS Home Loans: Affordable Housing Becomes a Reality; 5 Government Schemes You Must...

Home Loans: Affordable Housing Becomes a Reality; 5 Government Schemes You Must Know About

Learn about the many subsidy programmes that the Indian government is using to increase the accessibility of homeownership throughout the holiday season.

Home Loans

Home Loans: Are you hoping to purchase your ideal house this holiday season, but you don’t have the necessary funds? To help people save money on house loans during the holiday season, the Indian government has launched a number of programmes and subsidies. These are a few of the choices:

Pradhan Mantri Awas Yojana (PMAY)

For those in the economically disadvantaged sections (EWS), low-income groups (LIG), and middle-income groups (MIG), this programme offers interest rebates on home loans. The amount of the subsidy is determined by the income category and may account for up to 6.5% of the total loan amount. The suggested programme will apply to housing loans with a maximum amount of five million rupees that are taken out over a 20-year period.

Credit Linked Subsidy Scheme (CLSS)

This is a part of the PMAY programme that offers EWS, LIG, and MIG interest-only house loans. The maximum subsidy amount is 6.5% of the loan amount, with a maximum 20-year loan duration.

Stamp duty and registration fee waiver

During the holiday season, some state governments waive registration costs and stamp duties. The government of Uttar Pradesh has made the decision to eliminate the stamp registration fee when transferring property to family members.

Goods and Services Tax (GST) reduction

The GST on under-construction properties was lowered by the government from 18% to 5% for other properties and from 12% to 5% for affordable housing. This decrease may contribute to a lower total cost of the property and, thus, a lower amount of the house loan.

Interest subsidy scheme for small urban housing

Over the next five years, the Indian government plans to give subsidised loans for modest urban dwellings worth 600 billion rupees, or $7.2 billion. A yearly interest subsidy of 3-6.5% will be provided under the initiative for loans up to 0.9 million rupees in total amount borrowed. 2.5 million urban low-income loan applicants may benefit from the programme, albeit the amount of discounted credit will depend on the demand for these kinds of residences.

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