Centre  extended the benefits of the interest subsidy scheme on home loans under the Pradhan Mantri Awas Yojana or PMAY (Urban) by 15 months to achieve the affordable housing targets.  Now, the subsidy of up to ₹2.60 lakh on home loans under PMAY for the middle-income group (MIG) will be available till March 2019.

Interest Subsidy Scheme on Home loan under PMAY extended by 15 months

Durga Shanker Mishra , Housing and Urban Affairs Secretary made the announcement at the Real Estate and Infrastructure Investors Summit organised by NAREDCO in Mumbai, according to an official release.

He said that the government has decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY (Urban).

Prime Minister Narendra Modi in December 2016 had announced that the Credit Linked Subsidy Scheme (CLSS) under PMAY (Urban) for MIG would continue till the end of December 2017.

Under CLSS, MIG beneficiaries with annual income of above ₹6 lakh and up to ₹12 lakh get an interest subsidy of 4 per cent on a 20-year loan component of ₹9 lakh. Those with annual income exceeding ₹12 lakh and up to ₹18 lakh would get interest subsidy of 3 per cent.

Reiterating the government’s commitment to meet the Housing for All targets in urban areas by 2022, Mishra urged private investors to invest in affordable housing, being promoted by the government in a big way with several incentives and concessions.

Later, Mishra held an hour-long meeting with a 30-member delegation of NAREDCO which expressed concern over GST, including other taxes accounting for over one-third of the cost of residential properties.

The delegation referred to what they called anomalies in GST rates for completed and under-construction housing projects; stamp duties being higher and kept outside the purview of GST; scarcity of land; delays in granting construction permits; and lack of coordination among different municipal agencies, among other things.


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