Kolkata: Prospective first time home buyers with an annual earning not exceeding Rs 18 lakh will virtually get Rs. 2 lakh waiver on down payment while availing themselves of a home loan. A person buying a flat priced Rs 85 lakh and taking a loan of Rs 72 lakh will also get the benefit, irrespective of the home or loan size.
About the Budget proposal that has given a boost to the housing sector, Credai national president Getamber Anand said apart from the focus on affordable housing by offering incentives to sellers and buyers of 323 sq-ft homes in metros and 646 sq-ft homes in suburbs, it also offered a never-before opportunity to middle-class first-time home buyers. “For the first time, one needn’t be economically backward to get an incentive to buy a home. People with a monthly salary of up to Rs 1.5 lakh can get 3-4% waiver on a principal borrowing of Rs 9-12 lakh for 20 years,” Anand said.
This means if a person earning up to Rs 1 lakh a month takes a 20-year loan of Rs 20 lakh when the lending rate is 8.5%, the interest computed on the first Rs 9 lakh loan will be 4.5%, with a subvention of 4%. On the remaining loan amount of Rs 11 lakh, 8.5% interest will apply. Similarly, if a person, who earns up to Rs 1.5 lakh a month, takes a 20-year loan of Rs 25 lakh from the bank, the interest computed on the first Rs 12 lakh loan will be Rs 5.5%, after a subvention of 3%. On the rest Rs 13 lakh, 8.5% interest will apply. “The Centre has made a provision of Rs 1,000 crore in the Budget and will increase it if there is more off-take. National Housing Bank will facilitate the loan under this scheme,” said Credai Bengal president Nandu Belani.
Instead of spreading the incentive over the loan period that would have become a logistic nightmare for both the government and the lending bank, the Centre has decided to pay it upfront to the builder via the bank and adjust it against the down payment. “A person earning Rs 1 lakh a month will have to pay Rs 2.35 lakh less in down payment, while those earning Rs 1.5 lakh a month will pay Rs 2.1 lakh less,” said Credai past president Sushil Mohta, adding he expected most sale of homes in Rs. 35 lakh – Rs. 55 lakh bracket here.
Source: The Times of India