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How does Pradhan Mantri Awas Yojana help to Reduce Home Loan Interest Rates?

By Finserv MARKETS - Aug 23,2019
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How to Reduce Home Loan Interest Rate Under PMAY

Introduction

Buying a home is a dream for millions of people across the country. However, due to the rising cost of real estate, purchasing a property has become an expensive deal. A large number of citizens residing in urban areas are forced to live in rented apartments. Moreover, a vast majority of the rural population still belongs to the financially weaker section, and hence purchasing a house has become a distant dream for them. Keeping all these factors in mind, the Government of India launched the Pradhan Mantri Awas Yojana in the year 2015. The primary objective of this scheme was to provide 20 million affordable houses to citizens belonging to different segments of society. To encourage the citizens to avail the benefits of this scheme, the government announced various subsidies on home loan interest rates under PMAY.

Let’s have a look at how the Pradhan Mantri Awas Yojana helps the beneficiaries to reduce their home loan interest rates.

  • Beneficiaries of the PMAY Yojana can avail subsidies on home loan interest rate depending upon their income group.
  • Beneficiaries belonging to the Economically Weaker Section (EWS) and Low Income Group (LIG) are eligible for an interest subsidy of 6.50% on a home loan up to Rs. 6 lakhs
  • Those belonging to the MIG-I (Middle Income Group- I) can avail an interest subsidy of 4% on a home loan up to Rs 9 lakhs.
  • Under MIG-II (Medium Income Group II), beneficiaries can avail a subsidy of 3% on a home loan of up to Rs 12 lakhs.
  • Apart from commercial banks, housing finance companies, regional rural banks, and other financial institutions can also lend under this scheme.

The interest rate levied on the housing loan is a crucial factor as it decides the overall cost of borrowing. A comparatively lower interest rate can be extremely helpful in bringing down the home loan EMI. Therefore, it is always advisable to settle for a home loan with the most competitive interest rate. While availing a home loan, you can also calculate the interest rate by using a home loan interest calculator.

The Bajaj Finserv Home Loan offers competitive interest rate and other attractive features such as low processing fees, zero hidden charges, and flexible repayment option. You can also avail Bajaj Finserv Home Loan under Pradhan Mantri Awas Yojana (PMAY). You can avail a home loan on Finserv MARKETS with minimal documentation which will be processed systematically at best home loan interest rates.

How to Apply for Home Loan Under Pmay Scheme?

PMAY benefits individuals who wish to purchase a home by constructing affordable housing. There are numerous benefits of PMAY scheme, the application process of the scheme is quite easy. The following are the steps to apply for a home loan under PMAY scheme.

  • To apply for PM Awas Yojana you can log in to the official website http://pmaymis.gov.in/
  • In the “Menu” section you’ll find “Citizen Assessment” click on that option to move forward
  • Enter your 12-digit Aadhaar card number
  • On the application page, you will be asked to enter your personal details, income details, current residential address, and your bank account details
  • Then click on the “I am aware of” option at the end of the page. Once you click on the “Save” button
  • You will then be directed to the system generated application number which you can save for future reference
  • Download and print the duly-filed application
  • Submit the application form at your nearest CSC office centers and financial institution/banks along with the required documents

Now that you are well aware of how to reduce home loan interest rate under PMAY scheme, ensure to make the most of it while purchasing your dream house.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522