Subsidy in Pradhan Mantri Awas Yojana| Modi Home Loan Subsidy
In the year 2015, the PM of India Mr. Modi announced this dream scheme of Pradhan Mantri Awas Yojana by which all the poor people of the nation who are homeless will be provided affordable houses. However, the scheme mainly focuses only the BPL (Below Poverty Line) families for the middle and higher income categories; the PM has introduced two subsidy schemes which mainly look on basis of the income brackets for the high income category peoples and subsidy amount based on the principal loan amount for the low and middle class sectors.
Below listed details will elaborate those subsidy schemes which were hinted by the PM on the last year end.
Subsidy based on the income brackets
It’s one of the newly proposed schemes by the central government of India with the vision of providing finance support for the home buyers with respect to the incomes.
| S.No | Annual Income Bracket | Subsidy percentage rate | Subsidy Principal Component | Case Study |
| 1 | Less than Rs 6 lakh per annum | 6.5% | Rs. 6 Lakh | If owner purchase loans for 9% interest means, he needs to pay only 2.5% for 6 Lakh and 9% for remaining |
| 2 | Up to Rs 12 lakh per annum | 4% | Rs. 9 Lakh | If owner purchase loans for 9% interest means, he needs to pay only 5% for 9 Lakh and 9% for remaining. |
| 3 | Around Rs 18 lakh per annum | 3% | Rs. 12 Lakh | If owner purchase loans for 9% interest means, he needs to pay only 6% for 12 Lakh and 9% for remaining. |
Key points
- House owners will get subsidy amount under the housing for all scheme launched by the Indian Prime minister Mr. Modi. In order to achieve the target of providing housing for all by the end of the year 2022, government introduced these subsidy schemes.
- The government of India proposes the subsidy scheme for the above mentioned 3 scenarios will be implemented if the house owners are tends to borrow the home loans for the tenure period of 20 years.
Subsidy scheme implemented by the Nodal Agencies
The nodal agencies like NHB (National Housing Bank) and the HUDCO (Housing and Urban Development Corporation) is introduced the subsidy scheme for the home buyers from the Low Income group sectors. Under this newly proposed scheme, the beneficiaries will be able to get around 18 thousand subsidy amount. However, the respective government officials conveyed that the subsidy amount is about to get hiked as the scheme is likely to include the middle class sectors too. If it does means the subsidy amount will be increased depending upon the owner’s loan principle amounts.
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