Home Loan Interest Subsidy – Interest Rate and Eligibility

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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Source: 7th Pay Commission
Click to read article at Source Home Loan Interest Subsidy – Interest Rate and Eligibility

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