At South Indian Bank, we understand that owning a home is not just about having a roof over your head—it is about securing your future, building financial stability, and providing your loved ones with a safe and comfortable living space. With government initiatives and our customized home loan solutions, buying a home is now more achievable than ever.
- Understanding Affordable Housing and Its Benefits
Affordable housing is designed to provide budget-friendly home-ownership opportunities for individuals and families across income groups. It ensures that even middle-income and economically weaker sections of society can buy a home without excessive financial burden.
The government has defined affordable housing based on specific criteria:
- For non-metro areas: Homes with a carpet area of up to 90 square meters and a price of up to ₹45 lakh.
- For metro areas: Homes with a carpet area of up to 60 square meters and a price of up to ₹45 lakh.
To make home ownership easier, the government has introduced a lower GST rate of just 1% on affordable housing, ensuring that more people can access budget-friendly homes without high taxation.
- Why Owning a Home Matters
Buying a home is one of the biggest financial decisions you will make in your lifetime. While renting a house may seem like a viable option in the short term, home-ownership provides long-term financial security. Instead of spending money on rent every month, you can invest in your own property, building equity over time. Additionally, home-ownership provides stability for your family and serves as a valuable asset for future generations.
- Government Support for Affordable Housing
1. Pradhan Mantri Awas Yojana (PMAY) – Helping You Save on Home Loans
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing financial assistance to first-time homebuyers. The program offers the following benefits:
- Credit Linked Subsidy Scheme (CLSS): Home loan borrowers receive an interest subsidy, reducing the overall cost of the loan.
- Beneficiary-Led Construction (BLC): Families with their own land can receive financial support to build a home.
- Affordable Housing in Partnership (AHP): Public and private partnerships develop budget-friendly housing projects.
- Affordable Rental Housing Complexes (ARHCs): Low-cost rental housing is available for urban migrants and low-income groups.
2. PMAY-Gramin – Ensuring Housing for Rural Families
The PMAY-Gramin initiative focuses on providing durable and safe housing for rural households. With an extended timeline until 2029, the program aims to construct an additional 2 crore homes. Eligible applicants can check their status using the Awaas+ 2024 Mobile App.
3. RBI’s Priority Sector Lending – Easier Loan Access
To promote financial inclusion, the Reserve Bank of India (RBI) has categorized affordable housing loans under Priority Sector Lending (PSL). This allows banks to offer home loans at lower interest rates:
- Metro areas: Home loans up to ₹35 lakh qualify for PSL benefits.
- Non-metro areas: Home loans up to ₹25 lakh qualify for PSL benefits.
- South Indian Bank’s Affordable Home Loan Solutions
At South Indian Bank, we are committed to helping individuals and families achieve their dream of home-ownership. Our affordable home loan solutions provide financial flexibility, ensuring a stress-free home-buying experience.
1. High Loan-to-Value (LTV) Ratio – Reduce Your Upfront Costs
We offer financing of up to 90% of the property value for homes priced under ₹30 lakh, minimizing the need for a large down payment.
2. Loans That Match RBI’s PSL Guidelines
Our home loan offerings align with RBI’s Priority Sector Lending (PSL) guidelines, ensuring affordability and accessibility.
3. Flexible Eligibility for Salaried and Self-Employed Individuals
We understand that not everyone has a fixed monthly salary. That’s why we offer innovative eligibility criteria:
- Liquid Income Program: Considers both formal and informal income.
- Repayment Track Record (RTR): Evaluates past repayment history for easy approvals.
4. Competitive Interest Rates – Save More on EMIs
Our interest rates are among the most competitive in the industry, with reductions of up to 2% compared to other lenders.
5. Expert Assistance at Every Step
Our dedicated team of home loan experts guides you through every step of the home loan process, ensuring a seamless and transparent experience.
6. Affordable Housing Loans for All
Families from diverse financial backgrounds, including those belonging to EWS and LIG segments, can benefit greatly from our home loan plans. We ensure that home-ownership is not limited to a specific category but is accessible to all aspiring buyers.
- Additional Benefits of Choosing South Indian Bank
- Quick Processing: Fast approvals with minimal paperwork.
- Flexible Repayment Options: Choose a repayment tenure that fits your financial situation.
- Dedicated Customer Support: Our team is available to address all your queries and concerns.
- Your Dream Home is Within Reach
With government support and South Indian Bank’s affordable home loan solutions, home-ownership is more accessible than ever. Whether you live in a city or a village, we offer tailored financing options to help you buy your dream home.
Start your home-ownership journey today. We aspire to make home-ownership a reality for every Indian family. Secure your future, invest in your dreams, and give your loved ones a place they can truly call home!
By choosing South Indian Bank, you’re not just buying a house—you’re investing in a lifetime of security and happiness. Let us be a part of your journey to owning a home!
Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.