The central government is going to increase the amount of subsidy for home buyers under Pradhan Mantri Awaas Yojna (PMAY) in urban areas. According to the notification, the guideline of PMAY will be modified to bring properties falling under any part of all development authorities.
The development authorities include villages, industrial belts, and even special development authorities will be eligible for interest subsidy. In addition, the newly modify guideline will also cover the properties of port development authorities in coastal cities.
However, the benefit of interest subsidy is available only for those candidates who are buying the first house in urban areas. The central government is going to make the changes in the policy following reports of some of the banks. Because the banks are not approving loan applications under interest subsidy scheme in certain areas in urban localities.
Earlier, the state government notified only statutory towns under Census 2011 and towns which were eligible for coverage under PMAY. Many times several banks have raised questions about the development authority who are issuing approvals for housing projects other than the notified development authorities.
Therefore, the central government has the intention to extend the benefit to maximum people. The government is preparing new guidelines that will benefit more people and bring more clarity. In July, the housing ministry had modified the guidelines to be extended the interest subsidy scheme to more beneficiary who are falling under area notified by development authorities.
Recently, the central government has announced that people belong to MIG category will be able to buy a bigger house and government has also increased the house area for MIG up to 1500 Sq.ft. Under PMAY Home Loan Subsidy, the government will provide interest subsidy of 3% and 4% for a home loan amount of up to Rs. 9 Lakh and Rs. 12 Lakh.
Moreover, the Union Ministry of Housing and Urban Affairs has given its approval to construct of 1,12,083 more affordable houses under Pradhan Mantri Awas Yojana (Urban). For this purpose, the government has sanctioned Rs. 1,681 crore. This decision was taken at the meeting of the Central Sanctioning and Monitoring Committee.
Out of 1,12,083 houses, the state will get the number of houses as given below:-
a) Madhya Pradesh – 34,680
b) Haryana – 24,221
c) Maharashtra – 11,523
d) Jharkhand – 28,477
e) Kerala – 9,836
f) Mizoram – 3,270
Moreover, the government has also approved for the construction of 44,692 houses under the Beneficiary Led Construction (BLC) component of PMAY (Urban). The BLC component will help to beneficiaries to build a house on the land owned by them.
Under BLC component, new houses will be built in Madhya Pradesh (16104), Kerala (9836), Maharashtra ( 5131), and Mizoram (3270), Jharkhand (28477), Haryana (13946).