PM Awas Yojana: 3-4% rebate on home loans to the middle class

In an attempt to provide perks to the tax paying middle class, the Pradhan Mantri Awas Yojana will provide a rebate on the monthly home loan installment or EMIs for individuals within an income range of Rs 12-18 lakh per month.

With the provision of an interest subsidy of 3-4 per cent on borrowing of Rs 9 lakh to Rs 12 lakh, irrespective of the overall amount of the loan, the aggregate of the monthly EMIs is likely to come down by Rs 2,000 each- considering the usual housing loan interest rate of 8.65 per cent.

All adults under the income strata of Rs 18 lakh annual income will be able to avail the benefits of the Aawas Yojana, with the benefit extending to the families with unmarried children only.

Whereas, the tenure of the loan is likely to pan out over a maximum period of 20 years, or a lesser number of years, as preferred by the beneficiary. While, the interest subsidy accruing on the loan amounts will be paid off in one go to lessen the burden of the EMIs.

Asserting the implementation of the scheme for the middle class in urban areas, 45 housing finance companies, 15 scheduled banks, regional rural and co-operative banks finally signed a MoU each with the National Housing Bank on March 22, 2017.