The mortgage lenders are upbeat about the new guidelines under PMAY- Urban 2.0 to check the rampant misuse of home loan interest subsidy and the provision of balance transfer in home loans.
Under the PMAY- Urban 1.0 scheme, some dubious developers had found a loophole to cheat the government by fraudulently getting the home loans sanctioned and immediately closing these loans after availing the interest subsidy of Rs 2.67 lakh. In order to curb this misuse, the central government has decided not to pay the subsidy amount in one go but spread it over a period of 5 years. Moreover, the subsidy amount has been reduced from Rs 2.67 lakh to Rs 1.80 lakh for economically weaker section (EWS) , Lower Income Group (LIG) and Mid-Income Group (MIG) customers with an annual household income of Rs 3 lakh, Rs 6 lakh and Rs 9 lakh respectively .
The new PMAY rules will also check the abuse of balance transfers by some brokers by moving the loan amounts to various lending institutions, thereby hampering the growth of home loans. The amended guidelines under PMAY-Urban 2.0, will not only help check the misuse of home loan interest subsidy but also counter the abuse of balance transfer, in turn adding new borrowers to scale up home loan portfolios.
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