Karnataka Govt Plans to Pay Interest-Free Home Loan
Bengaluru:
The Karnataka Govt plans to revisit existing affordable housing schemes that offer subsidies on home loans and replace them with interest-free home loans.
This is part of the government’s mission to support PM Modi’s ‘Housing for All‘ scheme. The government plans to build 19 lakh houses in 30 months.
If everything goes as per the plan, the government will remove existing housing subsidies and pay the interest on the principal of up to Rs 12 lakh in urban areas and Rs 6 lakh in rural areas.
As per the plan, beneficiaries must repay only the principal amount to banks. The state govt will bear the interest for a duration of 15 years (maximum loan tenure). The govt will pay interest of 6.5% a year on the Rs 12 lakh loan (urban areas) and 8% a year on the Rs 6 lakh loan (rural areas).
Loans for houses under three models:
Any principal or interest above the given limit will have to be borne by the beneficiary. The houses will hold a carpet area ranging between 330 sq.ft and 450 sq.ft. Karnataka Housing Board, Karnataka Road Infrastructure Development Corporation, urban local bodies, Nirmithi Kendras and empaneled units will be the implementing agencies.
The loans will be allowed under three models. 1st, loans will be provided by merging Rs 6 lakh from the central government and Rs 6 lakh from the state under Pradhan Mantri Awas Yojana (PMAY-U) in urban areas and Rs 6 lakh in rural areas.
2nd model will be based on the public-private partnership (PPP) model. Under this model, the government and a private company will share sites on developed land and the beneficiaries will buy the constructed house or construct their own through an association made by them.
If the beneficiary prefers to buy a constructed home which is more than the upper limit of the loan, then he/she has to pay the leftover amount.
In the 3rd model, a private company will develop the land and deliver a 50% share of the land to the government, which will share it with the beneficiaries. The state govt has tried to increase the financial ability of beneficiaries for housing schemes to Rs 3 lakh from the present Rs 87,600 in urban areas and Rs 32,000 in rural areas.
Source: TOI
