How Govt Subsidy encourages homebuying for First-Time Home Buyers in India?
Home is a prized possession for all of us. With a plethora of schemes and home loans on offer, home buying is not that challenging. While earlier people would buy homes at a later stage in life, these days, you may even own one in your 20s, thanks to the lending institutions. The first home that you buy will have the most cherished memories. The Govt. of India has also made key efforts in turning this dream into reality. Let us explore the Government Subsidy for First-Time Home Buyers in India.
Under the Pradhan Mantri Awas Yojana initiated in 2015, the Government subsidy for first-time home buyers in India comes through the CLSS (Credit Linked Subsidy Scheme). It was introduced by our Prime Minister, Narendra Modi, in 2015. Offering “Housing for all”, this scheme focuses on providing affordable housing for all.
Owning a home is one of the biggest motivations for people and an ultimate dream. Government subsidy for first-time home buyers in India supports and encourages people, especially in the EWS (Economically weaker sections), LIG (Lower Income Group), and MIG (Middle Income Group) categories. Borrowers may use the scheme for the renovation or construction of a new home. This subsidy comes as a boon to this section of society aspiring to have a shelter of their own.
PMAY Subsidy Scheme
The Credit Linked Subsidy Scheme (CLSS) targets the urban poor when buying their first home. This interest subsidy ranges from 3 to 6.5%, depending on their income group. It may be noted that they must not have a home anywhere in the country.
Subsidy Slabs
EWS and LIG ( Economically Weaker Section, Lower Income Group)
For a maximum tenure of upto 20 years, the subsidy is 6.5 %, the annual income for EWS must be less than three lakhs, and for the LIG category, it should be between 3 and 6 lakhs; the carpet area should be 30sqm and 60 sqm respectively.
MIG (Middle Income Group)
Earlier, the subsidy was available only to buyers whose income was up to Rs. 6 lahk. Shortly after the union budget 2017-18, the government announced subsidies for buyers in the higher income brackets in two categories, the MIG category. Those earning Rs. 6 lahk to Rs. 12 lahks per annum were categorized as MIG-I, and those earning Rs. 12 lakh to Rs. 18 lakh per annum were categorized as MIG-II.
First-time home buyers of the MIG-I category can now get an interest subsidy of 4% on a principal amount of Rs. 9 lahk with a house carpet area of 120 sqm. Those in the MIG-II category get a subsidy of 3% on a principal of Rs. 12 lahks. The new slabs apply to loans with a tenure of up to 20 years. The carpet area has further been increased to 160 square meters and 200 square meters, respectively, for MIG-I and MIG-II.
The government has also cut the GST rate for houses purchased under PMAY-CLSS from 12% to 8%.
Pune offers a range of homes to aspiring homebuyers. If you have been looking to buy one, Nirman Developers is a trusted name in Pune real estate circles. With a strong legacy of quality, trust, and timely delivery of projects, homes by Nirman Developers are a popular choice among homebuyers. From affordable to luxury homes, they have a host of options in their kitty. Currently, they offer homes at various locations in Pune-Pisoli, Ambegaon, Kalyaninagar, Sahkarnagar, Model Colony Shivajinagar, Kharadi, and Sinhagad Road.
The Government subsidy for first-time home buyers in India is a perfect gift for those yearning for a shelter of their own. If you have been looking for a home, grab the opportunity and check out projects by Nirman Developers at different locations in Pune.
