Now Save 2.4 Lac on Your First Housing Loan: PMAY

Now Save 2.4 Lac on Your First Housing Loan: PMAY
By Admin 7 years ago

The government has reportedly worked out the details of the two new subsidy schemes under the Prime Minister Awas Yojana (PMAY), as announced by Prime Minister Narendra Modi on December 31, 2016. The government’s two new subsidy slabs aim at fueling the real estate sector and achieving housing for all by 2022. 

As against the current limit of 15 years, these schemes will apply to loans with a tenure of 20 years, The Times of India reports. The subsidies, until now available only to those earning up to Rs 6 lakhs per annum, will henceforth apply to homebuyers based on the income bracket they fall under. These PMAY subsidies will be in addition to the income tax benefits on home loans.

PM Modi’s Push For Real Estate: Prime Minister Awas Yojana (PMAY)

Under the Prime Minister Awas Yojana (PMAY), Govt. has announced slab-based subsidies which can actually save Rs 2.4 lakh for any first time home owner, if he is earning less than Rs 18 lakh per annum.

This applies for those, who opt for a home loan spanning at least 20 years. As of now, this subsidy is present only for those who are earning less than Rs 6 lakh.

In fact, Govt. has created three slabs for availing this massive subsidy, to ensure that every segment of the society gets benefitted.

Here is the breakdown, assuming a uniform 9% interest on home loan for a period of 20 years:

Earning of the Individual

Loan Amount Considered

Reduction in EMI

Net Savings on Interest Paid

Up to Rs 6 lakh

Rs.6 Lakh

Rs 2219

Rs 2,46,625

Up to Rs 12 lakh

Rs.9 Lakh

Rs 2158

Rs 2,39,843

Up to Rs 18 lakh

Rs.12 Lakh

Rs.2200

Rs 2,44,468

Home Loan, PMAY Subsidies, Rebate on first housing loan, Indian Govt. Home Loan Scheme