Homebuyers to Not Get Interest Relief in Noida

From low-income to middle-income groups, there are thousands of people in Noida and Greater Noida who are buying home for the first time and losing out up to Rs. 2.6 lakh of interest subsidy under the Pradhan Mantri Awas Yojana (PMAY) has Yogi Adityanath government has not sent the names of cities to be included among those eligible to avail the benefit. Homebuyers know very well about this benefit and are in hope for availing it. But the benefit won’t be offered to them after making initial payment and getting loan sanctioned.

According to the National Housing Bank, which manages the scheme, the benefits cannot be provided to the home buyers in these cities until the urban affairs and housing ministry assigns a specific code in each city. The ministry may allot codes when the name of the cities and towns are sent by the state government. Several states like Maharashtra, Kerala, Haryana, Andhra Pradesh, and Karnataka done it already. The urban affairs ministry issued two changes to the PM Awas Yojana to extend the benefit of interest subsidy to more homebuyers. According to 2011 Census, the ministry expanded the scheme last June and enabled states to inform more towns, though it covered initially only 4041 towns. This way, they enjoy more flexibility to cover the areas of statutory towns.

After the modification, 274 towns were not included in the Census. UP didn’t send any one name. Later on, it has sent three names but it didn’t cover Greater Noida and Noida. Last month, the PMAY guidelines have been modified by the Centre and enhanced coverage of subsidy to all the notified areas for planning and development. These covered special development authorities, industrial development authority, or other authorities. But UP has restrained from sending the names of two cities. According to an NHB official, “Until there is no specific code assigned by the ministry, the interest subsidy won’t be provided to the beneficiaries. We haven’t prevented any beneficiary to avail this interest subsidy.” For the homebuyers in cities under middle income groups, Prime Minister Narendra Modi announced the scheme in interest subsidy in December 2016.