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Query regarding benefits for home loan

08 April 2017

Dear All,

My brother is Central govt. employee. He has purchased a flat (less than 1000sq. feet) in 2014. Possession obtained in about Aug 2016. Now Pradhan Mantri Awaas Yogana has specified some benefits for those earning less than 12 lakhs per annum. His ITR income (& all income) is 8.5 lakhs per annum. I think that he is eligilbe for some Interest Subsidiary specified by PMAY. I wish to confirm that PMAY is eligible to him and how to avail the benefits. please guide in this matter.

Note we do not own any house other than mentioned above. Any further information required, please let me know.

Regards,

Paresh K

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4 Replies

Dixit (CA Final) (2405 Points)
Replied 08 April 2017

Prime Minister Narendra Modi had on December 31 announced that interest rates of 3% would be applicable on home loans of up to Rs 12 lakh and 4% on loans of up to Rs 9 lakh, under the PMAY.

Reports suggest that those with an annual income of up to Rs 12 lakh are likely to get a 4% interest subsidy on a loan of Rs 9 lakh and those with an income of up to Rs 18 lakh might get a subsidy of 3% on a loan of 12 lakh.

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Paresh K (9 Points)
Replied 08 April 2017

Thanks Dixitji,

May I know how to have those benefits. Say out of his 30 lakhs loans evenif he gets interest benefits for part of the interest benefits(for 12L out of 30L loan amount), how to get the benefits. Please guide.

Request for guidance to all.

Pranay Teja (Student) (60 Points)
Replied 08 April 2017

Mr Paresh

The scheme introduced by the Government is being implemented phase wise i.e. on a Financial year basis.

National housing bank and HUDCO are the nodal agencies to implement these schemes.

Dixit (CA Final) (2405 Points)
Replied 10 April 2017

Originally posted by : Paresh K
	Thanks Dixitji, May I know how to have those benefits. Say out of his 30 lakhs loans evenif he gets interest benefits for part of the interest benefits(for 12L out of 30L loan amount), how to get the benefits. Please guide. Request for guidance to all.

The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.

For example, the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.

*The above example is for illustration purpose only and will depend on the actual amount received or any changes done by NHB on the same.