Noida Home Buyers Not Enjoying Interest Relief Benefits

Noida Home Buyers Not Enjoying Interest Relief Benefits

Many mid and low income home buyers in cities of Noida and Greater Noida' are not benefitting from the interest subsidy near to 2.6 Lakh rupees announced by Pradhan Mantri Awas Yojana. This is because UP government has failed to include Noida City in the list of towns eligible to get the benefit.

This was much of surprise to the Noida and Greater Noida home buyers who were of the impression that they will be gaining benefits on PMAY immediately after their loan gets sanctioned and after they pay the initial amounts.

The administrators of the scheme, The National Housing Bank told that until urban affairs ministry allocates particular code for the cities, they cannot pass the benefits of the PM plan to the home buyers of the area. The ministry should be getting instruction for the same from the State Governments. Few states like Karnataka, Haryana, Kerala, Maharashtra and Andhra Pradesh has already acted on this issue.

Two modifications have been issued by Ministry of Housing and Urban affairs to PMAY with regards to extension of the interest subsidy benefit to more homebuyers. According to Census 2011, the scheme has covered originally 4041 legislative towns. The urban ministry has expanded the benefits to reach more towns in June 2017; they are reaching the state governments asking for addition in the list. This has given provision for the ministry to plan the areas of the particular constituency. As the effect of modification 274 additional towns that were not part of 2011 census were included for PMAY scheme. The government of Uttar Pradesh earlier did not add any town in the list, later they included 3 names but missed out Noida and Greater Noida.

Also in the month of January 17 central government modified guidelines of PMAY and increased the coverage to all advised planning and development regions. Industrial development and social development and authorities alike are also included in the proposal.

UP government is yet to include the names of two cities. Till a specification town code is allotted by ministry of housing and urban affairs, the beneficiaries may not get the interest subsidy. Official of National Housing Bank told that they have not stopped any eligible beneficiary getting benefits from PMAY.

In December 2016, Prime Minister Narendra Modi came up with interest subsidy scheme for lower and middle income group home buyers. The scheme got effective from January 2017. Mid income group people with annual income 6 to 12 lac rupees will be getting a subsidy of 4% on 20 year home loan and people with income level of 12 to 18 lac will get 3% interest subsidy as part of the PMAY scheme.

If the income level is beyond the specified limits, the home buyers will be paying full interest.

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