Best government schemes for home buyers

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It can be both thrilling and perplexing to purchase your first house. To help you, the Indian government has special schemes designed for first-time home buyers. These programs make home ownership simpler and more inexpensive by providing financial assistance as well as other advantages.

These programs are available to assist you in your home-buying endeavors, offering tax savings and loan interest rate reductions. The greatest government programs for first-time homebuyers in India will be discussed in this article, along with how they may assist you in obtaining your ideal residence.

PMAY, or Pradhan Mantri Awas Yojana

In India, PMAY is a well-liked program for first-time homebuyers. Its goal is to make housing accessible to all.

Qualifications:

Families earning up to ₹3 lakh annually are classified as being in the Economically Weaker Section (EWS).

Families in the Low-Income Group (LIG) make between ₹3 lakh and ₹6 lakh a year.

Families in the Middle-Income Group (MIG) earn between ₹6 lakh and ₹18 lakh annually, and they are further separated into:

MIG I: ₹6 lakh – ₹12 lakh

MIG II: between ₹12 and ₹18 lakh

Benefits

Interest subsidy: EWS: Discounts of up to ₹2.67 lakh on a loan of ₹6.5 lakh.

LIG: On a loan of ₹9 lakh, you can save up to ₹2.35 lakh.

MIG I: A ₹12 lakh loan can be repaid up to ₹2.35 lakh.

MIG II: A ₹12 lakh loan can be repaid up to ₹1.65 lakh.

Tax Advantages:

Section 80C: Up to ₹1.5 lakh can be deducted from a house loan's principal installment.

Section 24: Up to ₹2 lakh can be deducted from the interest paid on a housing loan.

Section 80EE: First-time MIG I buyers receive an additional ₹50,000 off interest.

Section 80EEA: First-time EWS/LIG buyers receive an additional ₹50,000 off interest.

Scheme for Credit-Linked Subsidies (CLSS)

As a component of the PMAY program, the CLSS provides LIG and MIG groups with interest rate breaks on house loans.

Qualifications:

must fall into one of the MIG or LIG income brackets.

must not be the owner of another home registered in the applicant's or their family's name.

must not have previously received any government housing assistance.

CLSS advantages include:

Discount on Interest Rates:

LIG: Interest on loans up to ₹6 lakh is discounted by 6.5 percent.

MIG I: interest on loans up to ₹9 lakh is discounted by 4%.

MIG II: 3% discount on interest for loans up to ₹12 lakh.

Reduced Monthly Payments: Your monthly loan payments are lessened thanks to the interest rate discount.

Loan Term: The subsidy can be used for a maximum of 20 years

State-Specific Plans

For first-time homebuyers, several Indian states have their own housing schemes with special advantages. Some noteworthy state-specific strategies are as follows:

Adults in the EWS, LIG, MIG, or HIG categories may apply for housing through the Delhi Development Authority (DDA) housing scheme.

For interest rate savings, PMAY is linked.

The Tamil Nadu Housing Board Scheme provides a 20-year loan period with an interest rate of 6.50%.

Caste, occupation, and disability are the basis for reservations.

In collaboration with PMAY, the Ahmedabad Urban Development Authority (AUDA) New Housing Scheme offers reasonably priced housing in Ahmedabad.

The Maharashtra Housing and Area Development Authority (MHADA) Scheme distributes dwellings equitably using a lottery mechanism.

Residents of Maharashtra who fall under the LIG, MIG, or HIG categories are eligible.

MHADA provides loans to assist with the purchase of a home.