Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana – Gramin targets for 2017 has been revised by the central government after the announcement made by PM Narendra Modi in his 31st December Speech. The government has increased the overall number of housing units to be constructed by 1 Crore under the PMAY-G.
The central government has set a target of building 44 Lakh homes under Pradhan Mantri Awas Yojana – Gramin by the end of December 2017. According to the statistics released by Ministry of Rural Development, about 22 Lakh houses have been constructed in rural areas under PMAY-G till 28th January. The ministry will complete the construction of 1 Crore 33 Lakh houses in three years from 2016-17 to 2018-19 which also includes 33 Lakh homes under previous Indira Awas Yojana.
PMAY-G Home Loan Scheme 2017
Narendra Modi on 31st December 2016 has announced new home loan scheme for PM Awas Yojana – Gramin beneficiaries. Under the new home loan scheme, the beneficiaries will be provided interest subvention of 3% on home loan of up to Rs. 2 Lakh taken in 2017 for new house construction or extension of housing in rural areas.
Pradhan Mantri Awas Yojana Gramin Home Loan
As per the announcement, home loans up to Rs. 2 Lakh taken in 2017 for construction or extension of houses in rural areas will receive an interest subvention of 3%. The 3% subsidy on interest on home loans under PMAY-G will reduce the effective interest rate and hence the EMI by a significant margin.
At present home loans are available at 8.5% average interest rates from the nationalized banks, private banks and non banking finance institutions. After subsidy of 3% under PMAY-G, the effective interest rate come down to about 5.5% which will further result in lower EMI and hence less burden of interest on the borrower.
PMAY-G Home Loan EMI Calculation
|Home Loan Amount||Tenure in Months||Bank Interest Rate||Subsidy||EMI before Subsidy in Rs.||EMI After Subsidy in Rs.|
|Rs. 2 Lakh||24||8.5%||3%||9091.13||8819.13|
The calculation is based on the average interest rate of 8.5% and a loan amount of maximum Rs. 2 Lakh for a tenure of 2 to 5 years. Home loan under the Pradhan Mantri Awas Yojana – Gramin can be availed from any national, co-operative gramin bank, private bank or non banking financing institutions.