Home Loan News: Many dream of owning a home in the fast-paced world of today. Yet, with the spiraling cost of real estate, the dream seems practically unachievable. For many, a home loan becomes their only alternative. But the burden of the EMIs (Equivalent Monthly Installments) and high interest rate would only add to the pressure for them.
Well, good news: The government has recently taken a hard decision that will relieve about 25 lakh people, and this one will change the lives of countless families for good and help them realize their home-ownership dreams.
Let’s take a deeper plunge into this new home loan scheme and how it will be beneficial to millions.
What is the new plan of the government?
On Independence Day 2024, Prime Minister Narendra Modi announced the launch of a housing scheme that will extend affordable home loans to families belonging to low- and medium-income categories. While all the official details are still awaited, reports have indicated that the new scheme will potentially give loans at very low interest rates somewhere between 3% and 6.5% for amounts up to ₹9-lakh. For amounts ranging up to ₹50-lakh, loans can be availed for a maximum period of 20 years.
The scheme is waiting to be launched by banks in the coming months, and will help lessen the hassle of home loans for millions in the country. It mainly intends to address financial burden in families that, on top of other burdens of life, are already struggling with high EMIs and interest rates.
Who will benefit from this scheme?
The government wants to specifically assist about 25 lakh low-income families living in urban areas. These are people and families generally found living in rentals, slum areas or unauthorized colonies. The scheme would promote improved living for them by providing affordable housing arrangements.
This is how promotion of benefits will take place:
- Low-Interest Rates: Interest rates on the loans will lie between 3-6.5%, easing the financial burden from the shoulders of the borrowers.
- Extended Repayment Tenure: A repayment tenor of 20 years will allow for reasonable EMIs.
- Difference between Home Loans: Extra discounts will cushion the financial burden mounted on beneficiaries.
2018 will see the anticipated full implementation of the scheme, and the final structure is presently being packaged.
PM Modi’s Vision for Affordable Housing
In his address in August 2024, PM Modi reiterated the importance of the improvement of urban family lives by the government. He stated that the new scheme is meant particularly for those residing in rented houses or in slums and unauthorized land. Its aim is, therefore, to improve their living conditions and, further, to help them obtain permanent and safe housing.
While the announcement has brought newfound joy for millions, the Ministry of Housing and Urban Development and the Ministry of Finance are yet to put out an official statement. Yet, the anticipation being so high, the scheme is expected to be the changing force in affordable housing in India.