Eligibility criteria for the recent Home Loan subsidy by the Government

A refreshing move from the government of India for home owners, as of 17th August 2016 the government has announced a home loan interest subsidy of 6.5% which reduces the load from the home buyer as per their latest scheme.This government grant is for the economically weaker section of the society living in the metropolitan areas this scheme includes even slum inhabitants too. The annual income household of that person should not exceed more than three lakh rupees. It also targets the sections of society such as the disabled, trans-gender, widow, schedule caste and schedule tribes will also get priority. Those who do not have ownership in their family name are eligible for this scheme. For you to qualify for this scheme you should not be more than 70 years old.This scheme is offered at various public sector banks such as HDFC, PNB Housing Finance, ICICI, L & T Housing Finance, and Muthoot Finance, Axis Bank, Indusland Bank to name a few. Also other home finance companies, some co-operative banks and micro-finance institutions are lending their support to this scheme. The amount of the loan subsidy which can be granted is 6 lakh for a period of 15 years. If the rate of interest is 10% from the lender, under this subsidy scheme the borrower will pay only 3.5%.This government grant is given to borrowers for the purpose of buying a house which is either in construction from a builder, a ready to occupy house, self-construction or if the borrower wishes to expand a room in an already constructed house. For economically weaker sections of the society the maximum size in metres should not exceed more than 30 square metres and for lower income groups it should not exceed more than 60 metres. People who are looking to buy land they can visit plots for sale at TGS Layouts in Bangalore and for constructions work they can take home loan with the help of TGS Constructions.The Housing and Urban Development Corporation and the National Horticulture board are the two agencies which have been appointed by the government as Central Nodal agencies to tie up with the banks and financial institutions to grant this service.What is the process to apply for this subsidy?An applicant will apply for this loan in any of the credit linked subsidy scheme listed lenders where upon credit assessment, the form which is supplied by the Central Nodal Agencies will be sent to the Housing and Urban Development Corporation and the National Horticulture Board. These Central Nodal agencies will reply back with an approval after thorough verification and give their seal of approval to the lending agencies. The loan amount will be adjusted with the subsidy, which is paid by the government upfront graciously.

This is Raju a Real Estate market research analyst at tgslayouts.