Over 1.66 crore applications for various credit linked subsidies for housing loans have been received through various channels by the government in the past few months. In a country where online internet penetration is a mere 37% overall and 62% urban, this data available with the Ministry of Housing and Urban Poverty Alleviation shows that digital access is not an issue. It may require some facilitation. However, that too, provides job opportunities and therefore, is a good economic activity to pursue.
The Housing Ministry’s effort to dovetail finance availability into the Prime Minister’s vision of a livable house for every Indian family by 2022. The interesting thing is that while earlier it was housing shortages that were being computed, today the extent of subsidy sanctions are being touted. So how does every citizen avail the sanctions? The government announced in a previous budget offered a 6.5% interest subsidy to be credited into the borrower’s account for the first Rs 6 lakh of loan availed for buying a house of 30 and 60 sq m carpet area. The With the inclusion of family income of the buyer was to be within Rs 6 lakh. This amounts to a net subsidy of 21% for the applicant. The Prime Minister’s announcement on December 31, 2016, that two new credit subsidy schemes for the middle classes, MIG 1 & 2, was also announced ensured that the net was widened further. Now those with upto Rs 12 lakh annual income could avail of the housing subsidy of 4% and those with annual income levels of Rs 18 lakh could avail of subsidy levels of upto 3%. On this loan the borrower is eligible for a subsidy of 3% on the first Rs 18 lakh, if the loan has been availed after January 1, 2017. This effectively brings the rate of interest down from the existing 8.5%. “This makes it the best time to buy an affordable house in urban India.
Come 2018, all the incentives may not exist. Therefore, it is a good time to buy now if you don’t own a house at Lakeshore Gardens. Read more at: Luxury villas in Cochin