By Accommodation Times News Services
Micro Housing Finance Corporation a home loan provider for weaker section and low income group individuals, is providing home loans at 6.5 per cent for a loan tenor of 15 years or during the sanctioned tenor of the loan, whichever is lower.
The subsidy on loan made available to eligible customers through the Pradhan Mantri Awas Yojana’s Credit Linked Subsidy Scheme (“CLSS”), which has effectively reduced its interest rate on home loans to start at 5.5% p.a. In a further benefit to the customer, there will be no processing fees on such home loans as well.
Customers who are eligible under CLSS will receive an interest rate subsidy of 6.5% for a loan tenor of 15 years or during the sanctioned tenor of the loan, whichever is lower. The subsidy will be calculated on a maximum loan amount of Rs. 6 lakh, which effectively means that customers can be expected to receive a subsidy of upto Rs. 2.2 lakh. The amount will be credited upfront to the loan account of the customer through MHFC, thereby resulting in a reduction in the outstanding loan amount.
To qualify under CLSS, beneficiary families would have to be categorized under Economically Weaker Section (“EWS”) or Low Income Group (“LIG”) for which the family’s household income would have to be less than Rs. 3 lakh a year and Rs. 6 lakh a year respectively. Additionally, the house being purchased for which the subsidy is being claimed should have at least one woman owner. No member from the beneficiary family should own a pucca home anywhere in the country in order to qualify under this scheme.