Government Housing Schemes

The Pradhan Mantri Awas Yojana was introduced in 2015 with an aim to build 20 million houses by the end of March 2022. This central housing scheme primary facilitates individuals belonging to the Economically Weaker Section, Lower Income Group, and Middle Income Group of the society by offering home loans with subsidized interest rates. As a borrower, if you want to avail a home loan under this government scheme , you need to meet the demands of the eligibility criteria to make it to the PMAY beneficiary list. Eligibility criteria of PMAY Homebuyers can make the PM Awas Yojana list if they meet these conditions – Applicants who already own a pucca house in any part of India are not eligible for this housing scheme, even if their family member owns such a property instead of the PMAY applicants themselves. Applicants who have already availed a subsidy scheme initiated by the Central or State Government of India are not eligible for PMAY. Existing applicants of PMAY are...

A top up loan is an additional credit borrowers can avail over and above an existing home loan . Individuals wondering what is a home loan top up should know that such a credit is offered over and above the existing home loan of the borrower. Here is a list of a few top up loan benefits – Nominal interest A top up loan is like a personal loan, but the interest charged is much lower. A low interest rate makes it a viable choice for any financial requirements . Zero documentation As you are already providing the necessary paperwork for the home loan,no documentation is required to avail a top up loan. This allows for a hassle-free and faster loan processing period. No additional mortgage A top up loan on a home loan requires no other mortgage. The borrower can use it for any purpose, as it is considered as a personal loan. Income tax exemption If the top up loan is used for home repairs, renovation or construction, homeowners can avail tax exemptions unde...

The Government of India has come up with different schemes to provide affordable housing to Indian citizens. It is aiming to build approximately 2 crore houses through such schemes. Among the government housing schemes, you can directly benefit from the following – Pradhan Mantri Awas Yojana Pradhan Mantri Awas Yojana or PMAY intends to provide housing for every citizen by the year 2022. According to one’s income, they can apply as beneficiaries under LIG, EWS, MIG 1, and MIG 2 categories. Individuals who want to purchase a house should apply for a home loan and easily avail interest subsidy through this central government housing scheme . Maharashtra Housing and Area Development Authority scheme Among the government housing schemes for housing, the Maharashtra Housing and Area Development Authority Scheme or MHADA operates via a lottery system to provide affordable houses. This scheme aims to provide affordable houses to citizens belonging to different income group by ...

The rate at which financial institutions borrow funds from the RBI in exchange for RBI-recognised security deposits is known as the repo rate. A repo rate cut enables financial lenders to lower their lending rates, thereby offering loans at much cheaper rates. The aspect of the market most affected by the RBI repo rate cut is mortgage loans like home loans. How repo rate revisions affect home loans? As a drop in the repo rate reduces the cost of borrowing for financial institutions, they can cut down on home loan interests. With reduced repo rate, lenders can offer home loans at a lower rate of interest. It is an additional benefit financial lenders can pass onto their customers. How repo rate affects economy? The repo rate determines the interest rate at which financial organisations lend money to borrowers. It affects the economy in the following ways – Inflation control-  A high repo rate increases the borrowing cost for financial organisations. This makes ...