Everyone dreams of owning a home, but achieving it isn’t easy. Most people only achieve this dream by investing their hard-earned money. However, the Narendra Modi government at the Center is not only helping economically disadvantaged individuals achieve this dream, but also allowing middle-class individuals to benefit from it. Let’s understand how.
Term plan – 0% GST on premiums
Government Decision in 2024
Indeed, the Narendra Modi government approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 after coming to power in 2024. Under this scheme, families from the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) are targeted. These individuals will receive significant interest subsidy benefits for purchasing or building their first home.
How Much Subsidy on How Much Loan?
The government provides subsidy on affordable home loans taken for home purchase under the PMAY-U 2.0 Interest Subsidy Scheme (ISS). To qualify for the subsidy, the house price must be up to ₹35 lakh and the loan amount must be up to ₹25 lakh. A key feature of this scheme is that, with a loan tenure of up to 12 years, a 4% interest subsidy will be available on the first ₹8 lakh loan. Simply put, this will reduce the burden of EMIs, making it easier for families to purchase a home. This facility is specifically for families with an annual income of up to ₹9 lakh and who do not own a permanent home anywhere in the country.
Total Subsidy ₹1.80 Lakh
The total subsidy received by the beneficiary will be ₹1.80 lakh, which the government will transfer directly to the bank account in five installments. Beneficiaries can also check their subsidy account details through the website, OTP, or smart card. The government has allocated a total assistance of ₹2.30 lakh crore for the scheme, of which interest subsidy is a major component. The government estimates that 10 million new urban families will benefit from this scheme over the next five years.
