NEW DELHI: Thousands of first-time homebuyers from middle- and low-income groups in Noida and Greater Noida are being deprived of the interest subsidy of up to Rs 2.6 lakh under the PM Awas Yojana (urban) because the UP government hasn’t sent the names for inclusion in the list of towns eligible for the benefit.
Homebuyers aware of this benefit and hoping to avail of it have only realized the gain won’t accrue to them after getting their loan sanctioned and making initial payment.
The National Housing Bank, which administers the scheme, said that the benefits cannot be passed on to the homebuyers in these two cities until the housing and urban affairs ministry allots a particular code for each city. The ministry can allot the codes only after the state government sends the name of the towns and cities. States like Kerala, Maharashtra, Andhra Pradesh, Haryana and Karnataka have already done so.
The housing and urban affairs ministry has issued two modifications to the PMAY (urban) to extend the interest subsidy benefit to more homebuyers. While the scheme originally covered only 4,041 statutory towns, according to Census 2011, the ministry had expanded it last June allowing the states to notify more towns. It had allowed them to have flexibility to include planning areas of the statutory towns.
Following this modification, 274 towns not in the Census were included. UP did not initially send a single name. Later, it sent three new names but that did not include Noida and Greater Noida.
Again, last month, the Centre modified PMAY guidelines and expended the coverage of interest subsidy to all the notified planning and development areas. These included industrial development authorities, special development authorities or any such authority.
But UP has not yet sent the names of two cities. “Until there is a specific town code allotted by the housing and urban affairs ministry, the beneficiaries don’t get the interest subsidy. We have not stopped any beneficiary to get the benefit,” an NHB official said.
Prime Minister Narendra Modi had announced the interest subsidy scheme for the homebuyers in urban areas who fall under two categories of middle income groups in December 2016. This came into effect from January 2017. Under the scheme, the middle income group beneficiaries with annual income of Rs 6 lakh to Rs 12 lakh get an interest subsidy of 4% on a 20-year loan component of Rs 9 lakh. Those with an annual income of Rs 12 lakh to Rs 18 lakh get 3% interest subsidy.
The homebuyers pay full interest for the loans beyond the specified limit.
