Karnataka govt. is going to provide Interest Free Home Loans for people in rural and urban areas. Under this scheme, govt. will revise the subsidies on home loans under certain specific conditions. In the mega Housing For All Scheme, the state govt. is planning to build around 19 lakh homes in next 2 and half years (30 months).
In Karnataka Interest Free Home Loan Scheme, govt. is offering to pay interest for home loans of upto Rs. 12 lakh in urban areas. Moreover for rural areas, govt. will pay interest for home loans of upto Rs. 6 lakh.
After the revision in the home loan subsidies in Karnataka, people will just have to pay back their principal loan amount to the banks.
Karnataka Interest Free Home Loan Scheme 2019
Now the state govt. of Karnataka will revise current subsidies on home loans under various Housing Schemes in form of new interest-free home loans. Karnataka govt. will construct nearly 19 lakh houses over the next 30 months under Housing For All Scheme. Under new Home Loan Subsidy Scheme, govt. will pay interest on principal of upto Rs. 12 lakh for urban beneficiaries while Rs. 6 lakh for those in rural areas.
As per the revised plan, beneficiaries are needed to only payback principal amount to banks. Karnataka govt. is going to handle interest expenses of housing loans for maximum loan tenure of 15 years. In this Interest Free Home Loan Scheme, govt. will pay an interest of 6.5% on Rs. 12 lakh loan in urban areas. Accordingly, govt. will pay an interest of 8% on Rs. 6 lakh loan in rural areas.
The housing scheme would be implemented by the Karnataka Housing Board, local bodies, Nimithri Kendras and the Karnataka Road Infrastructure Development Corporation along with associated bodies. The loans are going to be funded in 3 ways on the basis of the investing parties.
Under the first model, loans would be rolled out under the Pradhan Mantri Awas Yojana (PMAY). In the second model, all the homes would be built in public-private partnership (PPP). In the third model, private contractor would develop the land and hand over 50% share of the land to the government. The state govt. of Karnataka will then, in turn, will dispatch this land to the beneficiaries.