Home buyers can now avail interest subsidy under PMAY

Thousands of residents in Noida and Greater Noida who were buying house for the first time losing hope to get the interest subsidy. Now they can look forward to benefit under Pradhan Mantri Awas Yojana. With annual income of around Rs. 18 Lakh, all the eligible buyers who have bought houses post January 2017, can now avail the interest subsidy, according to a government order.

All the home buyers who are eligible and fall under middle income groups (MIGs) can now get subsidy of over Rs. 2.5 Lakh on their home loan under the urban scheme of PMAY. An amendment has been made by the urban and housing affairs ministry to the PMAY program and specified the effective dates of various changes made under this scheme. The credit linked subsidy scheme for MIGs will cover all the major cities, such as Noida and Greater Noida, effective from January 1, 2017.

According to a housing ministry official, “All the eligible home buyers who have acquired houses should approach their bank after January 2017 and referred the notification to March 15 to start getting subsidy. All the concerned agencies have been informed along with leading financial institutions like National Housing Bank and HUDCO. It will address all the concerns of home buyers squarely.”

The ministry cleared in its notification that it was important to clarify the effective dates for various changes made under PMAY (U) to deal with operational difficulties. In February this year, Times of India had first explained how low income and middle income group home buyers suffer without getting interest subsidy in these cities in National Capital Region for the failure of the part of UP government to include Greater Noida and Noida to include in the list of towns eligible for the benefit.

After this declaration, both state and central governments took charge for the issue an UP government has finally recommended the names of these cities. Earlier this month, those names were included. Under CLSS, over 92000 beneficiaries availed their interest subsidy and over 22000 of those were middle income groups, according to the sources.