With the initiation of the PMAY scheme in 2015, the government has continuously reformed and developed policies aimed at providing affordable residential spaces for everyone in India. The lower-income groups (LIG) along with the middle-income groups (MIG) have benefitted heavily from the present reforms, which has given a lot of thought on credit-linked subsidy schemes.
Many individuals belonging to either of the two MIG categories, I & II, have benefited from home loans availed via such schemes. The basic features of these reforms and introductions for these two groups under MIG are as follows.
Category I: This category encapsulates individuals who have a yearly income between Rs. 6 Lakh and Rs. 12 Lakh. Under the PMAY scheme, these individuals are entitled to a 4% subsidy on loans. The amount on which this subsidy will be effective is up to Rs. 9 Lakh, while its tenor can extend up to 20 years.
Category II: Individuals earning in between Rs. 12 Lakh and Rs. 18 Lakh per annum will be eligible for a 3% subsidy on their home loans under this credit linked subsidy scheme. They too will be eligible up to Rs. 9 Lakh in amount with a tenor extending up to 20 years.
The above explains the core of the reformed schemes by the Government of India. Such schemes have already benefitted a large number of MIG individuals and aim at increasing that number even further by 2022.
