The Modi government is planning to take the help of data from the Income Tax Department to reach out to the potential beneficiaries of the PMYA before the Lok Sabha elections. Rather waiting at bank branches to get a subsidy on home loans, the first time home buyers will now receive a certificate from the Income Tax Department and they can use that certificate to get a subsidized home loan.
Under Pradhan Mantri Awas Yojana, first-time homebuyers with an annual income of up to Rs 18 lakh, who buy apartments or build houses, are entitled to a credit-linked subsidy of up to Rs 6 lakh over a period of 20 years with an upfront concession of Rs 2.5-2.7 lakh. In a data shared by the government, 3.4 lakh beneficiaries had claimed the benefits under PM Awas Yojana till December 31, 2018. According to the officials, the number should be multiple times higher.
According to the sources, often beneficiaries of the Pradhan Mantri Awas Yojana are unaware of the benefits available or even if they know, they have to make a lot of effort to get the interest subsidy.
“With the help of the new system, which will be like the 59 minutes loans for small businesses, we are hoping that many more people will be able to claim the benefit. ” said a government official.
If the report is to be believed, the broad details have already been finalized by lenders and the government. In a recent meeting, interim finance minister Piyush Goyal discussed the details with bankers. However, the finer details will be outlined by a committee of four bankers and housing secretary D S Mishra committee over the next few days. This new scheme is expected to be announced in around a week.
Although the new mechanism may be a last-minute decision for home loan ahead of Lok Sabha elections, like other schemes initiated by the Modi government, the idea is to help those who are in the tax net or are below the poverty line. It is expected that the Modi government will be able to meet the housing for all target.