Mi­cro Hous­ing Fi­nance Corp of­fers home loans for weaker sec­tion for 6.5%

Accommodation Times - - Newslines -

Mi­cro Hous­ing Fi­nance Cor­po­ra­tion a home loan provider for weaker sec­tion and low in­come group in­di­vid­u­als, is pro­vid­ing home loans at 6.5 per cent for a loan tenor of 15 years or dur­ing the sanc­tioned tenor of the loan, which­ever is lower.

The sub­sidy on loan made avail­able to el­i­gi­ble cus­tomers through the Prad­han Mantri Awas Yo­jana’s Credit Linked Sub­sidy Scheme (“CLSS”), which has ef­fec­tively re­duced its in­ter­est rate on home loans to start at 5.5% p.a. In a fur­ther ben­e­fit to the cus­tomer, there will be no pro­cess­ing fees on such home loans as well.

Cus­tomers who are el­i­gi­ble un­der CLSS will re­ceive an in­ter­est rate sub­sidy of 6.5% for a loan tenor of 15 years or dur­ing the sanc­tioned tenor of the loan, which­ever is lower. The sub­sidy will be cal­cu­lated on a max­i­mum loan amount of Rs. 6 lakh, which ef­fec­tively means that cus­tomers can be ex­pected to re­ceive a sub­sidy of upto Rs. 2.2 lakh. The amount will be cred­ited up­front to the loan ac­count of the cus­tomer through MHFC, thereby re­sult­ing in a re­duc­tion in the out­stand­ing loan amount.

To qual­ify un­der CLSS, ben­e­fi­ciary fam­i­lies would have to be cat­e­go­rized un­der Eco­nom­i­cally Weaker Sec­tion (“EWS”) or Low In­come Group (“LIG”) for which the fam­ily’s house­hold in­come would have to be less than Rs. 3 lakh a year and Rs. 6 lakh a year re­spec­tively. Ad­di­tion­ally, the house be­ing pur­chased for which the sub­sidy is be­ing claimed should have at least one woman owner. No mem­ber from the ben­e­fi­ciary fam­ily should own a pucca home any­where in the country in or­der to qual­ify un­der this scheme.

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