With the Pradhan Mantri Awas Yojana (PMAY) scheme announced and brought into action by our honourable Prime Minister Narendra Modi, the Indian government has now taken a landmark decision that has reduced home loan interest rates. It is lower even for slightly larger housing units that are purchased by buyers in the middle-income segment. This move will not only benefit the citizens and increase the demand for homes, but also boost the realty sector in India. The low-interest rates and the easy EMI for home loans are also encouraging buyers to invest in property now. However, all these benefits come at one condition, i.e. if you already are an owner of property in India then you won’t be eligible for a home loan under the PMAY scheme. Although, as per the experts, if this condition is done away with, then the second home buyers will also invest and buy properties at a faster pace.
The Cabinet has issued its approval for a proposal where those with annual income up to Rs. 12 lakhs can purchase a home up to 1,200 sq. ft., which was 900 sq. ft. previously. Citizens with annual income up to Rs. 18 lakhs can buy homes up to 1,500 sq. ft., which was 1,100 sq. ft. previously. Along with these benefits, secondary market transactions will also be covered, opening the door to more benefits for potential buyers. Experts have forecasted high property sale volumes over the next few months in cities like Ludhiana, Pune and Chandigarh, along with some parts of South India.
Earlier this year, the Indian Government had given its nod for lower interest rates for those with annual incomes ranging between Rs.6-18 lakh. Close to 3.5 lakh homes out of 6.7 lakh homes in the MMR (Mumbai Metropolitan Region) remained unsold as per reports. This situation somewhat mirrors what is happening in the rest of the country as well. But, with this new move and cheaper home loans for slightly bigger units, the Government has uplifted the real estate sector greatly. Developers are now seeking out affordably priced locations for coming up with low priced housing units, and the interest subsidy for bigger housing units will go a long way towards clearing off the unsold inventories across older real estate projects throughout the country.
So check your PMAY Eligibility and make your move to purchase your dream house in the country! Apply for a home loan online with Indiabulls Housing finance company and enjoy the home loan tax benefit under the PMAY scheme.