If you are considering buying a house, but you are being held back by the current crisis in Kovid 19, the government is ready to help you. At last week’s press conference, Finance Minister Nirmala Sitaraman announced the expansion of the state programme of assistance in the area of housing for middle-income families (MIG).

The government has decided to extend the interest subsidy on housing loans under the loan subsidy programme for households with an annual income between ₹6 lakh and ₹18 lakh until 31 December 2009. March 2021. The system went live in May 2017 and was terminated on 31 December 2017. March 2020.

The government estimates that the subsidy programme will increase the housing sector by ₹70,000 crores. This will help increase the demand for affordable housing, said Anouj Puri, president of ANAROCK Property Consultants Pvt. Ltd. 1.56 million projects are currently under construction in seven of the country’s largest cities, according to ANAROCK. Almost 39% of them are in an affordable segment at an accessible price on ₹40 lakh.

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Information on grants

The CLSS subsidy on ₹2.67 lakh has been one of the biggest catalysts for home buyers in recent years, particularly for affordable housing in Tier II and III cities. If house prices remain stable, longer rental periods will encourage more people, especially in the middle-income category, to buy a house, said Pradeep Aggarwal, founder and president of Signature Global, an NCR-based developer with the largest number of projects in the affordable housing segment.

Here are the details of the layout.

Schematic details

The PCC, part of the Pradhan Mantri Awas Yojana (PMG) for MIG households, started on 31 December 2007. December 2016 as Prime Minister Narendra Maudie. Under the TLSS, middle-income beneficiaries whose annual family income is between ₹6 lakh and ₹12 lakh (classified as MIG I) receive an interest rate subsidy of 4% on a 20-year loan. Please note that the grant will only be given for the loan amount from ₹9 lakh, even if the total loan amount is higher. Those whose annual family income is higher than ₹12 Lah and up to ₹18 Lah (classified as MIG II) receive an interest subsidy of 3% of the loan for 20 years. In this case, you can use the grant up to the amount of the loan ₹12 lakh, even if the total amount of the loan is higher.

If necessary, additional loans above the set limit will be granted at non-subsidised interest rates.

As part of this programme, the family’s annual income consists of the income of the husband, wife, sons and unmarried daughters. In addition, the scheme only applies to families where no family member has a pukka (all-weather house) in their own name in any part of India.

The CLSS for MIG I is available for the purchase or construction of a house (including repurchase) with a carpet area of up to 160 square metres. For MIG II this limit is 200 square meters. The house must have basic infrastructure such as water supply, sewerage, access to roads and electricity.

Benefits

You can calculate the amount of the subsidy on http://www.pmaymis.gov.in/EMI_Calculator.aspx. Remember that the CLSS subsidy varies according to the category of borrower, the amount and duration of the loan and the interest rate.

Persons belonging to the Economic Weakness Categories (EWS) and Low Income Groups (LIG) can receive the maximum subsidy at ₹2.67 lakh, while for MIG I and MIG II categories the subsidy limit is ₹2.35 lakh and ₹2.30 lakh respectively.

The best part of the scheme is that the amount of the interest rate subsidy is credited in advance to the borrower’s credit account, thereby reducing the amount of outstanding credit debt and thus the amount of monthly equivalent payments (EMI). For example, if your income is between ₹12 lakh and ₹18 lakh and you take out a loan from ₹12 lakh, the amount of the subsidy is calculated for approximately ₹2.30 lakh. This amount (₹2.30 lakh) is reduced in advance so that the loan amount is reduced from ₹12 lakh to ₹9.7 lakh. Consequently, your EMI will be reduced by the amount of the outstanding loan from ₹9.7 lakh.

How do you get her out?

To make use of the subsidy scheme, you can apply to banks, housing finance companies and other credit institutions for loans for the purchase or construction of a house. You can even take advantage of it if you intend to buy the property to resell it.

In order to apply for the subsidy, you must submit an application to the lending institution where you are planning or have taken out the loan (the existing loan must have been taken out after the programme has been announced). Fill in the required application form and submit the required documents, such as Aadhaar, a permanent account number and a self-identification or sworn declaration as proof of income. Once you have submitted an application, the credit institutions will check whether you are eligible for the grant and, after approval, forward your application to the Central Agency (CNA). Once the KPA has approved the grant application, it is transferred to the lending agency and adjusted to the outstanding loan debt. You can follow the status of your request at pmayuclap.gov.in. It usually takes three to six months before the grant is credited to your account.home loan subsidy calculator,pradhan mantri awas yojana eligibility sbi,pradhan mantri awas yojana subsidy,pmay subsidy eligibility,home loan subsidy status,how much time it takes to get pmay subsidy?,can existing home loan get benefit of pradhan mantri awas yojana,subsidy on home loan by government