The Pradhan Mantri Awas Yojana (PMAY) is one of the most revolutionary steps taken by the Indian Government in recent times. The primary objective of the PMAY Yojana is to provide equal housing opportunities to people from different segments of society especially economically weaker sections of the society. The PMAY Yojana aims at constructing 2 crore affordable houses across the country. These houses will have all the basic facilities like water supply, electricity, and sanitation. With the PMAY Yojana, a large number of individuals will be able to realize their dream of purchasing their own house.
The PMAY is further divided into urban and rural schemes with a different set of home loan eligibility criteria. Check home loan eligibility before applying. PMAY-Gramin (PMAY-G) targets the homeless, and the underprivileged families residing in the remote and rural areas of the country.
On the other hand, PMAY-Urban (PMAY-U) focuses on the urban population who are classified into the Economically Weaker Section (EWS), Lower Income Group (LIG), the Middle-Income Group I (MIG-I) and Middle-Income Group II (MIG-II).
Home loans under PMAY
The home loan subsidy scheme under PMAY is a Credit Linked Subsidy Scheme (CLSS) that allows the applicants to avail subsidies on the home loan interest rate depends on the personal loan eligibility criteria. The basic eligibility criteria are mentioned below:
- The applicant should not own a house
- One cannot apply if one has already benefited from a government housing scheme earlier
- The carpet area of the house is limited to a range of 645 sq ft to 2150 sq ft depending on the income slab the applicant falls under
In order to qualify for a housing loan subsidy, applicants must fall under the following income group:
- Economically Weaker Section (EWS) – up to Rs 3 lakhs
- Lower Income Group (LIG) – between Rs 3 lakhs and Rs 6 lakhs
- Middle-Income Group I (MIG-I) – between Rs 6 lakhs and Rs 12 lakhs
- Middle-Income Group II (MIG-II) – between Rs 12 lakhs and Rs 18 lakhs
EWS and LIG category
- Applicants under both these categories receive almost the same benefits except the allotted carpet area. The carpet area allotted to beneficiaries under EWS is 322 sq ft while for LIG it is 645 sq ft.
- Applicants are eligible for an interest subsidy of 6.50% on a loan of up to Rs 6 lakhs.
- In order to encourage more people to apply for this scheme, the government has increased the repayment tenure for 15 years to 20 years.
- The carpet area allotted to beneficiaries under this scheme is 1722 sq. ft.
- Applicants under MIG-I category can avail of an interest subsidy of 4% on a home loan up to Rs 9 lakhs.
- The loan tenure is a maximum of 20 years.
- Under MIG-II, applicants can avail a subsidy of 3% on a home loan of up to Rs 12 lakhs.
- The loan tenure is of maximum 20 years and the carpet area allotted is 2152 sq ft.
The interest rate subsidy is extremely beneficial in reducing the overall home loan EMI. Consequently, this also reduces the repayment burden of the home loan. Apart from the above-mentioned PMAY subsidy, home loan applicants only need to pay the 4% concessional GST charges as opposed to 12%.
To facilitate the application process, PMAY online apply is also possible for the eligible beneficiaries. All these benefits of the PMAY yojana make it one of the finest schemes launched by the Indian Government.
While availing a home loan under the PMAY scheme, it is essential that you compare various loan offers provided by different lenders. Bajaj Finserv Home Loan comes with competitive interest rates and other lucrative features such as low processing fees, flexible repayment options, no hidden charges, etc.
So why wait? Avail a Bajaj Finserv Home Loan and realize your dream of purchasing your own house.
Know more on everything about Pradhan Mantri Awas Yojana.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!