Home buyers get hope of getting interest subsidy

NEW DELHI: Thousands of first-time homebuyers in Noida and Greater Noida, whose hopes of getting the interest subsidy under PM Awas Yojna (PMAY) were fading, can now look forward to availing the benefit. All eligible buyers with annual income of up to Rs 18 lakh, who have bought houses after January 2017, will be able to get the subsidy, a government order said.

All eligible home buyers from the middle income groups (MIGs) can get interest subsidy of approximately Rs 2.5 lakh on their home loans under the PMAY (urban).

On March 15, the housing and urban affairs ministry made an amendment to the PMAY (urban) specifying the effective dates of different changes under this flagship scheme.


All cities including Noida and Greater Noida had been brought under the credit linked subsidy scheme for the middle income group (MIG) with effect from January 1, 2017.

“Al those eligible home owners who have bought houses after January 2017 need to approach their bank and refer to March 15 the notification to start the process of getting interest subsidy. We have informed all agencies concerned and the primary lending institutions such as HUDCO and National Housing Bank. This will squarely address all concerns of the home buyers,” said a housing ministry official.

In its notification, the ministry said there was a “need to clarify specify effective dates for different amendments under PMAY (U) to obviate operational difficulties.”

TOI in February this year had first highlighted how middle and low income group home buyers in these two Delhi suburbs were being deprived of getting interest subsidy for the failure in UP government’s part to include Noida and Greater Noida among the list of towns that are eligible for the benefit. Following this revelation, both Centre and the state governments took up the issue and UP government finally sent the names of the two cities.

These names were included early this month.

Sources said at least 92,000 beneficiaries have got the interest subsidy under the CLSS and more than 22,000 of them fall under the middle income groups.