Under the Pradhan Mantri Awas Yojana, all the first time buyers buying a house in Greater Noida, Noida and Yamuna Expressway will be able to avail a benefit of Rs.2.5 lakh. Until now, these cities were not eligible, as per PMAY guidelines, to receive the interest subsidies.
As per the current guidelines, interest subsidy will not be given to a homebuyer under PMAY for buying a house, if that area is notified by the development authorities like Greater Noida and Noida. Areas that are notified by the state government and statutory towns according to the Census 2011 will qualify for coverage under PMAY.
This negligence by the Ministry of Housing and Urban Poverty Alleviation led to no-benefit for buyers of Greater Noida, Noida and Yamuna Expressway. Because of this, it was very difficult for finance companies to convince homebuyers that as per the Census 2011, Greater Noida and Noida did not come under towns.
When the Housing Ministry heard about this, they took the initiative to improve the guidelines so that the areas that have been notified by the development authorities also become eligible under PMAY.
Till date, the government has managed to distribute Rs.750 crore under the scheme to more than 43000 homebuyers.