Affordable Housing… A Blessing

Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income... As a result, it becomes the increased responsibility of the government to cater to the rising demand for affordable housing.

Here in India, loans given by banks to individuals up to ₹25 lakh in metros and ₹15 lakh in non-metros — for purchase/construction of a dwelling unit, per family, were considered as affordable housing loans. These loans also fell in the priority sector lending category for banks.

In a bid to boost the housing sector, the Reserve Bank of India recently announced home loans up to ₹50 lakh in metros and ₹40 lakh in non-metros, given by banks will qualify as affordable housing loans.

It is also prevalent and expected further that interest rates could come down on affordable loans given out by Banking Institutions. While tweaking the affordable housing definition, the RBI said the cost of a house cannot exceed ₹65 lakh and ₹50 lakh in the metros and non-metros, respectively.

Pune being declared as the 7^th Metro of India still is considered a non – metro in the new affordable housing thereby reducing the house all inclusive cost to ₹50 lakh to qualify as affordable housing.

The Government is giving every possible advantage to first home buyers through affordable housing in form of lower interest rates and tax rebates. Of the housing demand of entire India, 90% fall in the affordable housing category. No doubt, affordable housing is on the rise and expected to grow 300% in the next few years.

Mr. Mohan Thorat, MD of Kamalraj Group, which has a strong real estate history and having Affordable Housing @ Moshi and Dighi  adds “Affordable housing is on the rise but not doing as well as expected due to the inherent fact – Ignorance. People are very ignorant and least bothered of the benefits affordable housing has on offer. Real Estate groups are adding to the grief by forgetting to educate the market. Kamalraj Group stands proud here on this aspect. We take pride and stay pious to our Brand positioning “Nice People. Nicer Homes.”  We make sure that we educate and help our customers and every potential buyer on all the benefits of affordable housing.”