Pradhan Mantri Awas Yojana Acts As Big Savings For Homebuyers
Along with boosting the affordable housing segment of the country and meeting the home requirements of the Economically Weaker Section (EWS) and the Lower-Income Group (LIG), the Pradhan Mantri Awas Yojana also acts as big savings for those looking to buy homes with home loans.
The various aspects of loan procured under the scheme coupled with the construction of homes help you buy your dream home without dipping into your savings and impinging on essential life goals. Read on to know how this scheme not only offers you a quality home but also help you save in the long run.
Home loan interest rates depend on numerous factors including the repo rate and marginal cost of fund-based lending rate (MCLR) among others. A high-interest rate on home loans, which determines the EMIs, can result in high monthly cash outgo. Home loans are long-term commitments where generally, EMIs are paid for a period of 10-15 years and sometimes even more. The longer the tenor, the higher is the interest outgo.
Banks can charge anything between 8-10% as the interest rate on home loans and this significantly pushes up the interest payment and subsequently the total amount at the end of the tenor. You can procure home loans from non-banking finance companies (NBFCs), and also avail pre-approved offers by sharing a few basic details. It is essential to choose a lender offering loans at competitive interest rates.
However, since the Pradhan Mantri Awas Yojana offers interest subsidy on home loans, it results in huge savings. Under the scheme, those belonging to the EWS and the LIG category and availing a loan amount up to Rs.6-12 lakh for a tenor of 15 years are offered an interest subsidy of 6.5% and 3% respectively. Middle-income group (MIG) beneficiaries would get a subsidy of 4% on a loan amount of Rs.9 lakh for a tenor of 20 years.
It is estimated that those belonging to the lower and mid-income group can save anywhere between Rs.1-2.3 lakh on a home acquired through Pradhan Mantri Awas Yojana. You can easily calculate the EMIs you need to pay through an online home loan EMI calculator.
With the subsidised interest rate on home loans, the Pradhan Mantri Awas Yojana acts as big savings in the arm of EWS, LIG and MIG people looking to buy quality homes with Home Loan. With the savings made they can address other critical financial goals such as higher education of children, their wedding, etc., with utmost ease. The amount saved can also be invested in various financial instruments such as mutual funds, fixed deposits, etc., to compound wealth.
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