Housing Loan Go Cheaper with Interest Rate Subsidy
Purchasing a home remains a goal of life for the middle-class and lower middle-class people in India. Many people today both in the urban and rural areas of the country live in the rented houses despite living in the developing country. With the aim of making the home purchase affordable to everyone, the current government has landed few policies in place to make the first home cheaper for the people in the country. This is the right time to go for a home loan and achieve your goals of owning a dream home.
The government has moved a step ahead to make the first home affordable to common man in India with Pradhan Mantri Awas Yojana. Through this program, government has taken an initiative to provide subsidy on the interest rates offered on home loan. With the recent effects of demonetization, many nationalised banks are offering home loans at reduced interest rates which make purchasing home more affordable than earlier. Interest subsidy provided by the government is making these home loans more tempting offer for a common man.
How would you benefit from Pradhan Mantri Awas Yojana?
Though the concept of interest rate subsidy on home loans is as old as hill. Few changes that has been implemented in the program made it whole new topic again in the real estate market. In the earlier version, the benefit could be availed by the people with the annual income below six lakhs. As it was difficult for the people to own a new home with such low income, the program was not that popular. The tweaks added to the earlier program to make it more reachable to the common man in India. The limit of income in the new program has raised to 18 lakhs which could cover large portion of Indian population.
How can you get qualified?
The exact details of interest subsidy on home loans was on air recently. The income level of a person remains a standard to determine the extent of subsidy that could be availed by a person. A portion of loan is subsidised by the bank based on the applicant’s income level. To get the best bet on interest loan, you should first shop around and compare the interest rates offered by different banks. Loans comparison sites like logintoloans.com will help you take an informed decision in picking the right deal. You can consider it as the best deal when the interest rates and other fees on the loans are less when compared to other lenders. Applying Pradhan Mantri Awas Yojana to the lowest interest rates on home loans will make the home loans more affordable.
Interest rate subsidy
If your annual income is up to 6 lakhs, you will be eligible to get an interest subsidy of 6.5% up to 6 lakhs loans. The balance amount on the home is charged at interest rate stated by lending bank. For the people with 12 lakhs income, subsidy is 4% and people with 18 lakh are eligible for 3% subsidy.