Five programs and incentives to reduce home loan costs during the holiday season

Five programs and incentives to reduce home loan costs during the holiday season

Do you intend to purchase your dream house over the holiday season but lack the necessary funds? Consider a house loan, particularly in light of the many government initiatives in India that provide subsidies and make it simpler for people to realize their goal of home ownership.

To assist Indian citizens save money on house loans over the holiday season, the Indian government has implemented a number of programs and discounts. Here are a few possibilities:

PMAY: Pradhan Mantri Awas Yojana Individuals from economically disadvantaged sections (EWS), low-income groups (LIG), and middle-income groups (MIG) are eligible for interest subsidies under this program on house loans. Depending on the income category, the subsidy amount might range up to 6.5% of the loan amount. The proposed program would be applicable to housing loans under five million rupees that are taken out for a 20-year term.

The PMAY program's Credit Linked Subsidy Scheme (CLSS) offers interest-free housing loans to EWS, LIG, and MIG borrowers. The maximum subsidy amount is 6.5% of the loan amount, and the maximum loan term is 20 years.

Waiver of stamp duty and registration costs: During the holiday season, several state governments waive stamp duty and registration fees.

GST reduction: The government has lowered the GST on homes still under construction, from 18% to 5% for other properties and from 12% to 5% for affordable housing. This decrease may aid in lowering the total cost of the house and, therefore, the size of the mortgage.

Interest subsidy program for small urban housing: Over the next five years, the Indian government is proposing allocating 600 billion rupees ($7.2 billion) to give loans with interest subsidies for small urban housing. The program would provide a 3-6.5% annual interest subsidy on loans up to 0.9 million rupees. The program may help 2.5 million low-income urban loan applicants, but the amount of subsidized credit will rely on the demand for such dwellings.

It is important to note that depending on the area and other conditions, the availability and qualifying requirements for certain programs may change. So, before taking advantage of any of these programs, it is advised to verify with the appropriate authorities or contact a financial expert.