A huge number of debutante homebuyers from mid-income and low-income groups in Noida and Greater Noida are not able to avail the interest subsidy of as far as Rs 2.6 lakh under the Pradhan Mantri Aawas Yojana (urban) owing to the UP Government’s inability to get the names included in the list of cities entitled to the benefit.
Residential investors who are well-informed of this benefit and expect to avail it have only begun to know the advantage will accrue to them after their loan is approved and the first payment is made.
The National Housing Bank, that runs the programme, said the benefits will not be transferred to homebuyers in these twin towns till the Housing and Urban Affairs Ministry allocates a specific code to every city. The ministry can allot the codes only after the state government consigns the names of towns and cities. Kerala, Maharashtra, Andhra Pradesh, Haryana and Karnataka are the states that have done this already.
The housing and urban affairs ministry has issued two changes within PMAY (urban) to stretch the interest subsidy benefit to more residential investors. While the programme to begin with enveloped only 4,041 statutory cities, on the lines of Census 2011, the ministry had augmented it in June of 2017 facilitating the states to inform more towns. It had permitted them to be adaptable to include planning areas of the statutory towns.
Following this modification, 274 towns not in the Census were included. UP did not initially send a single name. Later, it sent three new names but that did not include Noida and Greater Noida.
Moreover, in January, the Centre altered PMAY directives and consumed the scope of interest subvention to every notified planning and development territory. These comprised industrial development authorities, special development authorities or any such authority.
However, UP has not yet dispatched the names of two towns. “Until there is a specific town code allotted by the housing and urban affairs ministry, the beneficiaries don’t get the interest subsidy. We have not stopped any beneficiary to get the benefit,” an NHB official said.
PM Modi had launched the interest subsidy scheme for buyers of homes in urban territories who are within the two classifications of mid-income groups in December 2016. This became operational in January 2017. Within the ambit of this scheme, the mid-income group recipients with yearly earnings of Rs 6 lakh to Rs 12 lakh are eligible to an interest subsidy of 4% on a 20-year loan element of Rs 9 lakh. Ones with a yearly income of Rs 12 lakh to Rs 18 lakh can avail a 3% interest subsidy. The home buyers pay the entire interest for loans that are above the stated limit.