Business Mantra News
6.5% interest subsidy on small ticket house loan available from central government.
- It is CLSS (Credit linked Subsidy Scheme) under PMAY ( Pradhan Mantri Awas Yojna)
- This subsidy is for Urban poor in EWS (economically weaker sections) whose total income along with family income does not exceed Rs. 3 lakhs and for LIG (Lower Income Group) people with income (including family’s income) ranging from 3 lakh to 6 lakh per annum.
- If the family owns any other house then it would not be eligible for subsidy on loan for 2nd house.
- Subsidy of 6.5% on interest on home loan would be available. If a person eligible as per above discussed conditions takes a home loan of 10 lakhs @ 9.5% :-
Then situation will be as follows:-
Full rate of interest = 9.5%
Subsidy on interest = 6.5%
Rate of interest upto 6 lakh loan = 3.5%
Rate of interest on remaining 4 lakhs loan =9.5%
- Loan tenure should not be more than 15 years.
- Loan may be taken from any of the scheduled/ nationalized/private bank or housing loan companies etc.
- For EWS – max size of flat 30 sq. meter – max loan eligible for subsidy 3 lakhs
For LIG – max size of flat 60 sq. meter – max loan eligible for subsidy 6 lakhs