Approval of 15,091 Houses for Allotment under PMAY

In a recent Andhra Pradesh cabinet meeting held on 6^th September, 2018 around 15,091 houses have been approved for allotment under Pradhan Mantri Awas Yojana (PMAY) – NTR Nagar (Urban) Housing Scheme.

The cabinet also decided to allot new houses to the rural people living in dilapidated conditions under NTR Rural Housing Program. Individuals who were alloted the house from 1993-94 to 2006-07 will be covered under this program.

NTR Housing Scheme is a part of PMAY through which the Andhra Pradesh Govt. seeks to provide permanent houses to the poor. The scheme also extends Loans at lower interest rate for reconstruction of the houses to the citizens of Andhra Pradesh.

The Government will also pay dearness allowance at revised rates to the State Government Employees and Pensioners.

The State Government also approved the draft bill to set up AP maritime board for the development of seaports in the state and for the revising the exclusive limits of Krishnapatnam port.

An unemployment allowance scheme will be launched on September 14^th, 2018. The Govt. will also set up Arya Vysya Welfare and Development and Corporation for extending Loans to the Vysya Community for Self-employment, Financial aid and Foreign education. Several other proposals were approved by the govt. in the meeting.

Home Loan EMI to go up as Banks hike Lending Rates

Home Loan applicants will now have to pay more as Banks have increased their MCLR on 1^st September, 2018. Leading Lenders of Home Loans such as State Bank of India and ICICI Bank have increased its benchmark lending rates. Public- sector Bank SBI has increased its MCLR by 0.2% (20 bps). ICICI Bank has also hiked its benchmark rate by 15 basis points. Previously, SBI and ICICI Bank had revised MCLR in June, 2018 before the second bi-monetary policy review.

SBI Home Loan Interest rate based on MCLR will get increase with an increase in MCLR. SBI One-Year MCLR stands at 8.45% from earlier 8.25%. Similarly, ICICI Bank’s six-month MCLR has increased by 15 Bps from 8.35% to 8.50%. One Basis Point is equal to hundredth of a percentage point.

As per RBI guidelines, all Loans taken after 1st April, 2016 are linked to the MCLR. Marginal Cost of Funds based Lending Rate (MCLR) is the Minimum Interest Rate below which Banks cannot offer Loans to the eligible customers.

State Bank of India New MCLR

State Bank of India MCLR
Tenure	Existing MCLR	New MCLR
Overnight	7.90%	8.10%
One Month	7.90%	8.10%
Three Month	7.95%	8.15%
Six Month	8.10%	8.30%
One-Year	8.25%	8.45%
Two-Year	8.35%	8.55%
Three-Year	8.45%	8.65%

ICICI Bank Revised MCLR

ICICI Bank New MCLR
Tenure	MCLR
Overnight	8.30%
One Month	8.30%
Three Months	8.35%
Six Months	8.50%
One-Year	8.55%

The increase in Lending rate is due to the 20% increase in bad loans during April-June quarter of the current financial year. This increase in Lending Rates has come ahead of festival time when banks offers special Home Loan schemes to eligible customers.

MCLR Rate offered by Leading Banks

MCLR Rates by Top Banks
Banks	Overnight	One Month	Three Month	Six Month	One-Year	Two-Year	Three-Year
Axis Bank	8.10%	8.10%	8.35%	8.50%	8.60%	8.70%	8.75%
HDFC Bank	8.05%	8.05%	8.10%	8.25%	8.40%	8.55%	8.70%
IndusInd Bank	8.95%	9.00%	9.30%	9.55%	9.60%	9.65%	9.70%
Kotak Mahindra Bank	8.05%	8.25%	8.55%	8.70%	8.95%	8.95%	9.00%
Yes Bank	8.40%	8.80%	9.35%	9.50%	9.65%	–
PNB	7.90%	8.05%	8.20%	8.40%	8.45%	–	8.60%
Bank of India	7.90%	8.05%	8.20%	8.40%	8.55%	–	–
Central Bank of India	8.00%	8.20%	8.40%	8.50%	8.60%	–	–