Currently, the subsidy is available to those with earning upto Rs 6 lakh per annum. On December 31, 2016, Prime Minister Narendra Modi introduced these two subsidy schemes under the Prime Minister Awaas Yojana (PMAY) scheme, however the nitty-gritty of the scheme has been explained now.
According to the scheme, a person earning upto Rs 6 lakh per annum with a Rs 6 lakh loan can save up to Rs 2,46,625 over a period of 20 years through an interest rate subsidy of 6.5%.
Whereas, a person with earning of Rs 12 lakh per annum with a loan amount of Rs 9 lakh will get a subsidy of 4%, to save Rs 2,39,843 over a period of 20 years.
At the same time, if a person has earning of upto Rs 18 lakh per annum, he will save Rs 2,44,468 for a loan amount of Rs 12 lakh, over the same period.
This benefit will be an additional benefit over and above the income tax benefit on home loans. Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) are the two nodal agencies appointed to ensure proper implementation of these schemes.