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.
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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