Loans Taken Post 25 July, 2015 Can Be Converted To PMAY Home Loan
More efforts by City Corporation (Thiruvananthapuram) to attract more beneficiaries for the interest subsidy scheme on home loan under the Pradhan Mantri Awas Yojana (PMAY). The local body will soon hold meetings with managers of various banks to explore possibilities of converting recent housing loans to the subsidy scheme under PMAY.
According to an official handling the implementation of housing schemes in the Corporation, home loans availed after July 25, 2015 are eligible to be converted in this manner.
Officials are currently collecting the list of home loans after this date from banks in the city. They can thus compile a useful database of loans. A meeting will be called with managers from various banks and representatives from Housing and Urban Development Corporation Limited (HUDCO). There is still confusion over how these loans can be converted to the subsidy scheme, said the official.
Credit Linked Subsidy Scheme (CLSS) has three slabs. Those with an annual income of up to Rs 6 lakh will get loans up to Rs 6 lakh with an interest subsidy of 6%. People with an annual income of up to Rs 12 lakh a year will get an interest subsidy of 4% on housing loans up to Rs 9 lakh. Those with an annual income of up to Rs 18 lakh a year can get an interest subsidy of 3% on housing loans up to Rs 12 lakh.
In addition to converting existing home loans, the Corporation and the banks are also planning to organise loan melas to attract new customers to the scheme. As of now, 108 beneficiaries have taken loans under the interest subsidy scheme. Out of this, around 70 have taken loans for the Lower Income Group (LIG).
The restrictions on the maximum area of house to avail home loan subsidy under the Higher Income Group (HIG) make the scheme unattractive in a place like Kerala. For the category of borrowers having income up to Rs 12 lakh a year, the maximum area is fixed at 950 square feet, whereas the area is fixed at 1200 square feet for income groups up to Rs 18 lakh.
These schemes are mainly aimed for those buying premium flats in cities like Mumbai. In a way, these schemes for Higher Income Groups (HIG) are not meant for the beneficiaries, but for the builders. There are even builders who advertise their flats bundled with these loan subsidy offers, says the official.
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