In order to give benefit to more home buyers, the housing ministry has extended coverage of interest subsidy under Prime Minister Awas Yojna (PMAY) to property falling under any part of a development authority and planning area. The land for which interest subsidy will now be available will include rural areas, industrial belts and even rural pockets within special economic zones (SEZs).
Home buyers can get the interest subsidy of around Rs 2.3 lakh. The housing ministry had been working on the proposal to increase the coverage of interest subsidy since the last month, but the modified guidelines were issued recently. The changes have been made following complaints from home buyers who had alleged that some of the banks were not approving loan applications under the interest subsidy scheme in certain areas in about 100 cities.
Areas falling within notified planning or development area under the jurisdiction of an industrial development authority or special area development authority or urban development authority or any such body under state legislation that is entrusted with the functions of urban planning and regulations shall also be included for coverage under PMAY(U), the amended guidelines said.
"The beneficiaries in the permanent wait list of PMAY (G) will have the flexibility for opting for a house under PMAY(G) or PMAY (U)," the notification said. The benefits of all existing and future rural schemes will not be denied to a beneficiary who would avail a house under this amendment, it added.