Calcutta, Feb. 7: The requirement of down-payment for home loans may go down for first-time buyers when the interest subvention scheme announced by Prime Minister Narendra Modi is rolled out, builders’ body Credai has said.
The government has offered a 4 per cent discount on interest rates for a loan up to Rs 9 lakh and 3 per cent if the loan amount is Rs 12 lakh when the family income stands below Rs 18 lakh a year, according to the scheme announced by the Prime Minister on December 31.
The implementation of the scheme will take place after Assembly elections are over, Getamber Anand, national president of Credai, said.
“Our calculation indicates that buyers may get Rs 2.1 lakh for a loan of Rs 9 lakh and Rs 2.3 lakh for a loan of Rs 12 lakh. This will be made upfront, thereby reducing the capital required for down payment associated with home loans,” Anand explained at an event here today.
Mortgage lenders usually ask for 10-15 per cent of the property value as seed capital before disbursement of a loan. If the scheme is rolled out, the buyer will not have to wait for the entire tenure of the loan to get the benefit. The financial benefit will be given up-front and the buyer will continue to pay the prevailing interest rate.
“This is a bonanza for the middle class. There is no cap on the amount of loan one can take. So, a buyer can potentially take loan of Rs 25-30 lakh and still get a discount on interest up to Rs 12 lakh,” Nandu Belani, president of Credai Bengal, said.
Sushil Mohta, immediate past president of Credai, said there could be a boom for affordable housing in India, especially Calcutta, following the budget proposing tax breaks for affordable housing and the PM’s scheme.
Anand and Credai members were in town to launch a skill development initiative for construction workers in Bengal in association with PNB Housing Finance.
Source: The Telegraph