Despite being one of the fastest-growing economies in the world. India is still faces the issue of homelessness. To deal with this issue in an effective manner, the Government of India launched the Pradhan Mantri Awas Yojana in the year 2015. Under this scheme, the Government intends to construct 2 crores affordable houses for the citizens of the country. The mission of this scheme is to provide housing for all by the year 2022. The houses will be constructed by using eco-friendly construction method and will have all the basic facilities such as water supply, electricity, and sanitation. Moreover, under the Credit Linked Subsidy Scheme, beneficiaries of PM Awas Yojana are eligible for home loan interest subsidy.
The Pradhan Mantri Awas Yojana is further divider into PMAY- Urban (PMAY-U) for the urban poor and PMAY- Gramin (PMAY-G) for the financially deprived citizens residing in the remote rural areas of the country.
The beneficiaries of PMAY (U) consist of individuals belonging to the Middle Income Groups (MIGs), Low-income Groups (LIGs) and Economically Weaker Section (EWS). In order to be recognized under LIG or EWS, the applicants must submit an affidavit as income proof to the concerned authorities.
The income eligibility, rate of interest subsidy and other benefits that can be availed by EWS and LIG beneficiaries are tabulated as under:
|Annual income of the family||Up to Rs 3 lakhs||Above Rs 3 lakhs and up to Rs 6 lakhs|
|Maximum dwelling unit carpet area||Carpet area up to 30 sq metres||Carpet area up to 60 sq metres|
|Interest rate subsidy||6.50%||6.50%|
|Maximum loan eligible for subsidy||Rs 6 lakhs||Rs 6 lakhs|
|Maximum loan tenure||20 years||20 years|
It is to be noted that the houses that qualify for the interest rate subsidy, can either be a single unit or a unit under any multistoried building. The eligible houses must have all the basic facilities and infrastructure such as sanitation facility, water supply, sewage system, road, electricity, etc.
The PMAY subsidy scheme is instrumental in bringing down the interest rate charged on the home loan. This can not only decrease the overall cost of borrowing but also reduce the repayment burden of the home loan. Apart from the interest rate subsidy, home loan applicants only need to pay the 4% concessional GST charges as opposed to 12%.
Now that you know how does PMAY subsidy work, it’s time you check your eligibility for this scheme and make the most of it while purchasing your dream house. Knowing the PMAY subsidy status beforehand can come in extremely handy while applying for this scheme. To facilitate the application process, PMAY online apply is also possible for the eligible beneficiaries.
It is recommended that beneficiaries under the PMAY scheme should avail a home loan after comparing various loan offers provided by different financial institutions. This will help them apply a home loan that best suits their needs.
It is also advisable to calculate the monthly installments of the home loan beforehand with the help of an online housing loan EMI calculator. This can help the borrowers plan their monthly budget wisely and make timely repayment of their home loan.
The Bajaj Finserv Home Loan available on Finserv MARKETS comes with competitive interest rates and other lucrative features such as flexible repayment options, no hidden charges, etc. The easy online application process, instant approval of the loan application and quick disbursal are some of the added advantages of availing a house loan.
Lastly, do not forget to read the terms and conditions of the home loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage.
So what are you waiting for? Avail a Bajaj Finserv Home Loan and realize your dream of purchasing your own house.
You can also read more on the eligibility criteria for PMAY. Also get to know about the perfect credit score for home loan.
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