There are at least four changes to the PMAY benefits under government consideration, according to sources:
Proposal:
Sources told CNBC-TV18 that the PMAY programme would soon be taken beyond blue-collar workers and people with low salaries to include self-employed people, shopkeepers, traders, and professionals, among others.
Likely impact:
More people will be eligible to apply for home loans under PMAY.
One proposal under consideration is to change the benchmark to the cost of the house instead of the individual's income.
Proposal:
Linking the loan to the cost of the house may enable eligible borrowers to get bigger home loans. Currently, loans under PMAY depend on the borrowers' income.
Likely impact:
Subsidised loans may be benchmarked to the price and size of houses.
Proposal:
Average ticket size of home loans under PMAY may go up to ₹25 lakh.
Likely impact:
Interest subsidy on these home loans is likely to be pegged around 4%. Stamp duties on registration may also be tweaked.
Proposal:
Currently, the interest subsidy on home loans under PMAY is anywhere between 3% and 6.5%.
Likely impact:
Fresh sanctions under the credit-linked subsidy scheme were closed in March 2021.
In the five years before that, lenders had financed 2.5 million low and middle-income homes, which cost the government ₹59,000 crore in subsidy.
The Modi administration plans to subsidise the purchase or construction of 10 million homes under the changed PMAY scheme.