KOCHI: The city’s realty sector, facing an extended lull, is trying make a comeback. Prominent builders are now wooing home buyers by highlighting the benefits of Pradhan Manthri Awas Yojana (PMAY). They ardently hope that people belonging to the middle-income groups would invest in apartment projects coming up in the city.“Builders realized that affordable housing is the way forward as it provides hope for developers, who are hit by the lull in realty sector. The PMAY covers families having an income up to Rs18 lakh per year. But, the benefits of the scheme are available only to those who do not have dwelling units in their names,” said a city-based banker.While developers are sitting on lakhs of unsold apartments costing above Rs 50 lakh, there is a huge demand for budget homes. Home buyers in the middle-income group 1(category: MIG-1) having an annual income of up to Rs 12 lakh can now buy an apartment having an area of up to 120 sq metres (1,291sq ft) by availing the benefit of concessional rates applicable through PMAY. Those earning up to Rs 18 lakh per annum (category MIG-II) can now buy a house of area up to 150 sq metres (1,614 sq ft) and avail the benefits of PMAY.Kochi-based Yasoram Builders is offering ready-tooccupy 3BHK apartments in the city with the benefits of PMAY.“Banks provide 80% of the total cost of the unit as housing loans. The buyer will have to bring in the remaining 20% of the cost. While filing the application for bank loan, the buyer should fill in a separate form for availing PMAY benefits. It will help the buyer get the benefit of subsidy on the interest rate provided by the Union government,” said a representative of Yasoram Builders.Bankers pointed out that for a loan of up to Rs 6 lakh, people need to pay only 6.5% interest rate and if a person takes Rs 9 lakh, the interest subsidy is 4%. The interest subsidy is 3% for a loan amount of Rs 12 lakh. Benefits under this scheme will be available for a maximum tenure of 20 years.“While PMAY will be attractive for those looking for budget homes up to Rs 50 lakh, those targeting to buy houses above this range may not find the benefits attractive. The interest rates depend on the income of the beneficiary household. It can be considered a good marketing move,” said a banker.

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