The government pays this subsidy in the beneficiary's bank account (where the home loan is availed). After that, the bank concerned reduces EMI on the home loan. For the LIG/EWS category, the loan amount is up to Rs 6 lakh and interest subsidy is 6.5%. For MIG-1 category, the loan amount is up to Rs 9 lakh and interest subsidy is 4%.
Sales revenue has increased at a CAGR of 6.5% during FY16-20, but in the current financial year, sales revenue has decreased by 35.2% during H1-FY21 compared with the 8.9% growth achieved during H1-FY20.
The pandemic-induced lockdown brought down the sales to almost nil for most developers, this has led to a decline in their operating profit margin.
Construction activity completely was halted during lockdown phase and collections were limited to the milestones achieved prior to lockdown. Net profit margin also entered the negative territory.