Interest subsidy scheme makes more sense for smaller towns

The benefit in the scheme is a function of property price - lower the cost, higher the benefit

If you stay in tier-II or tier-III cities, you stand to benefit the most from the government’s newly-introduced credit-linked interest subsidy scheme for the middle class. For those in metros, the scheme does reduce the cost of purchase but not as significantly.

“The benefit in the scheme becomes a function of property price as the maximum benefit an individual can avail is capped. Lower the price, higher is the percentage of the subsidy,” says Mudassir Zaidi, a property consultant.

If an individual earns between Rs 6 lakh and Rs 12 lakh a year, the government will provide an interest subsidy