The Narendra Modi-led Central Government plans to offer the subsidy payment under the PMAY [Pradhan Mantri Aawas Yojna] more efficiently. The plan is being considered to reach out to the maximum number of beneficiaries under this flagship programme as the Lok Sabha elections are approaching in few months.
The Government is planning to fetch the list of potential beneficiaries from the Income-tax department instead of making the first-time homebuyers wait for their subsidy in the banks. The Income tax department will provide a certificate to the beneficiaries that they can use to get the subsidized loan, the sources said.
All those first time home buyers having yearly income upto 18 lakhs can buy a home under the Pradhan Mantri Aawas Yojna. The homebuyers are entitled to CLSS i.e. Credit-Linked Subsidy Scheme upto Rs 6 lakhs for the tenure of 20 years with a concession of Rs 2.5-2.7 lakh.
According to the sources, by December 2018, 3.4 lakh people availed the benefits under this scheme and the number is estimated to be higher than said. The sources further informed that many homebuyers remain unaware of the benefits and run pillar to post to in order to finalize the home buying deal.
However, a government official said that the introduction of new mechanism will benefit many more people as it will be similar to the 59 minutes loans for small businesses. The lenders have finalized the broad details as the Government is discussing the same. Recently the bankers had a meeting with the interim finance minister Piyush Goyal.
According to the sources, the new plan will be made public in few weeks as the mechanism is being refined by a committee of four bankers and housing secretary D S Mishra. The sources also said that the Narendra Modi-led Central Government aims to offer a rebate to the homebuyers who fall under the tax slabs or are below the poverty line.
This decision is likely to have a long and positive impact on the Indian real estate market as the new idea is being conceptualized under the ‘Housing for All’ motto of the Central Government.