Be it a studio apartment or a lavish bungalow, owning a home is a dream come true for most of us. Besides financial security, your abode provides a safe haven.
However, with ever-increasing property prices, it has become relatively challenging for first-time homebuyers to purchase a house. This is why the Indian Government has introduced many government housing schemes to provide affordable housing to citizens in need.
Not just the Central Government, various state governments have also participated in the ‘Housing for all’ initiative, and have launched several state housing schemes.
These projects allow homebuyers to get subsidies on home loan interest rates, thus reducing their overall EMI amounts in the long run.
If you’re a potential first-time homeowner, here are 5 reasons why it’s smart to invest in a government-backed housing scheme.
Subsidized interest rates
Almost all government housing projects provide subsidies on home loan rates, effectively reducing the overall amount of your monthly instalments. For instance, under the Pradhan Mantri Awas Yojana Scheme, borrowers can get an interest rate subsidy up to 6.5% for a 20-year loan tenure.
However, to avail these benefits, you must meet the scheme’s home loan eligibilitycriteria. As most of these ventures are meant for first-time homeowners, you should make sure that you haven’t owned or are currently in ownership of a property before applying.
Apart from subsidies, government projects like PMAY or DDA Housing Schemeprovide homes at lower-than-usual prices. Because government authorities aren’t inclined towards profit churning, thus making it easier for them to offer homes at an affordable price tag.
Moreover, these housing projects are often constructed in places, which aren’t owned by any private developer, thereby allowing authorities to undertake them at attractive, well-connected locations.
Additional Read: How to Complete your Dream of Owning a House Using PMAY
Apart from having the location and affordability advantage, investing in government-led housing schemes is also a secure option, as these projects stringently follow legal requirements in all aspects.
Unlike private projects, where a builder may take years to give possession, government-led housing projects offer greater assurance when it comes to timely delivery.
Affordable housing for “all”
The best part about investing in government-backed subsidy schemes is that they aren’t limited to a specific demographic. Whether you belong to an Economically Weaker Section (EWS) or a High-Income Group (HIG), these schemes ensure that all eligible first-time homebuyers can purchase and live in their dream house.
Additional Read: Affordable Housing Loan with Tata Capital
Are you looking to purchase a home under a subsidy scheme but are falling short on finances? Don’t fret! Tata Capital can help you out. We offer a hassle-free housing loan application process that requires minimal documentation.
Our affordable interest rates and flexible tenure will bring you closer to your dream home. Before applying, we recommend you visit our website and use our home loan EMI calculator to figure out your monthly installment amount.
So, what are you waiting for? Check your eligibility using our home loan eligibility calculator and apply for home loan with us today!