The Government of India has taken various measures to make housing affordable for the economically weaker sections and provide healthy living conditions. There are numerous RBI affordable housing schemes aimed at providing housing opportunities to all.
As you may know, the Indian real estate sector experienced a significant slowdown owing to the Covid-19 crisis. However, the RBI guidelines for affordable housing and waivers on GST, tax subsidies, etc., have provided some respite to both the buyers and the developers. Here are some of the measures – RBI has taken in the recent past to promote affordable housing.
Affordable housing by RBI
RBI has mandated the lenders to increase the limits of affordable home loan eligibility under priority sector lending for the purchase/construction of a home. According to the revised RBI guidelines, affordable house rates should not exceed Rs. 65 lakhs in metro cities like Delhi, Mumbai, Bangalore, etc., and Rs. 40 lakhs in non-metros.
Housing for All
The Indian government launched the ambitious ‘Housing for All’ scheme in 2015. It aims to fulfill the mission of providing affordable housing for all income groups by 2022. This comes under the Pradhan Mantri Awas Yojana (PMAY) scheme, aiming to provide affordable housing to the EWS.
If eligible, you can avail of a home loan under the PMAY scheme from any lender at a competitive rate and buy a house.
Additional Read: Affordable Housing Loan with Tata Capital
The 2021 Union Budget came as a relief for many prospective home buyers. The finance minister announced that she would be extending the eligibility for availing an interest deduction of up to Rs. 15 lakhs on the purchase of an affordable home. This facility has been extended for one more year, and all those who take a loan by March 2022 will be eligible for it. In consequence, the home loan interest rates are likely to become more competitive.
GST rate cut
The GST Council has slashed the GST rates from 8% to just 1%, at a price ceiling of Rs. 45 lakhs, which means houses bought under Rs. 45 lakhs will be exchanged at the lowest GST rate of 1%. As a result, interest rates for housing finance are bound to become more lucrative.
Affordable Renting Housing Complexes (ARHCs)
Beyond the low-cost housing facilities, the government also wants to make renting houses affordable for the migrant population. It will also help launch vacant plots in the market and invite greater investment from private sector companies.
Additional Read: Home Affordability in Current Market Scenario
To sum up
Both the central government and RBI have made various provisions to boost affordable housing in India. As such, if you are looking for a modest home, your next step should be to finance your purchase by taking a Tata Capital loan!
Get competitive interest rates and a comfortable tenure for a smooth borrowing experience. Enjoy home loan interest rates starting from 6.80% only at Tata Capital! Get in touch for more details.