If you must select between renting a house and owning one, which option will you choose? Many would, of course, opt for buying a property as it is the most lucrative and prudent approach. After all, you can substitute your monthly rent with EMI payments; the latter will help you to become a proud homeowner. And why not increase your existing assets by investing in something whose value will appreciate exponentially in the future?

Pradhan Mantri Awas Yojana (PMAY) - Overview

Owning a home will provide a plethora of benefits and if you already own multiple properties, then you can rent out your other houses. This will provide you with an additional income and ensure your financial prosperity. After all, real estate is one of the most lucrative markets where you can invest. Purchasing a new house is a topmost priority and an urgent need for many Indian citizens.

To facilitate this, the Pradhan Mantri Awas Yojana was launched and implemented since 17th June 2015. The mission of this scheme is “Housing for All” and intends to accomplish just that. You will be surprised to know that the Credit-Linked Subsidy Scheme falls under the Pradhan Mantri Awas Yojana. Let’s look at the services this policy has to offer for different income groups.

This scheme offers housing loan interest subsidy to the middle-income group (MIG). It can be availed for acquisition and/or construction of property.

People belonging to the Lower Income Group (LIG)/Economically Weaker Section (EWS) will also receive the interest subsidy on home loans for acquisition and/or construction of property. The Credit Linked subsidy will also be provided for housing loans to customers falling under this category. It can be availed by existing tenants for construction of additional rooms, toilet, kitchen, etc. This benefit is synonymous with the term ‘incremental housing’.

Your interest subsidy benefit will be determined by the outstanding principal amount. Applicants should fulfil the income criteria as mentioned in the scheme to avail its benefits. Let’s understand the definition of the term beneficiary in the context of this policy. It comprises family members like husband/wife, unmarried daughters and/or unmarried sons. An adult earning member of the family will not be considered as a beneficiary and can be included in the separate household category. Read on to know more and understand the steps involved in the Bajaj Finserv lending process. 

Particulars

EWS

LIG

MIG I

MIG II

Total Household Income (Rs. p.a)

0-3,00,000

3,00,001-6,00,000

6,00,001-12,00,000

12,00,001-18,00,000

Housing Loan Amount Eligible for Interest Subsidy (Rs.)

Up to 6,00,000

Up to 6,00,000

Up to 9,00,000

Up to 12,00,000

Interest Subsidy (% p.a.)

6.50%

6.50%

4.00%

3.00%

Maximum loan duration/tenure (in years)

20

20

20

20

Maximum dwelling carpet area

30 Sq. m.

60 Sq. m.

160 Sq. m.

200 Sq. m.

Discount Rate for Net Present Value (NPV) calculation of interest subsidy (%)

9.00%

9.00%

9.00%

9.00%

Maximum Interest Subsidy Amount (Rs.)

2,67,280

2,67,280

2,35,068

2,30,156

Lump sum amount paid per sanctioned to PLIs in lieu of Processing Fee (Rs.) to the extent of loan amount on which subsidy is applicable.

3000

3000

2,000

2,000

Application of scheme on existing home loans sanctioned on or after

17.06.2015

01.01.2017

Applicability of No Pucca House

Not for renovation/upgradation

Yes

Yes

Woman Ownership/Co-ownership

Compulsory for new acquisition, Not compulsory for existing property

Not compulsory

Not compulsory

Quality of House/Flat Construction

National Building Code, BIS Codes and according to NDMA Guidelines adopted

Approvals for the Building Design

Mandatory

Basic Civic Infrastructure (water, sanitation, sewerage, road, electricity etc.)

Mandatory

This beneficial scheme is provided by reputed institutions like -Finserv Markets. By availing a Bajaj Finserv loan you will be also provided with a host of other benefits like minimal documentation, transparency, quick loan amount disbursement and many more.

Let’s consider the key parameters of this scheme through the subsequent table.

The details mentioned above are subject to change and it’s important to be equipped with the latest information. This scheme was launched by the Government of India. Only the government can authorise any changes in the offerings.

 

FAQs

Q: What programs are covered under this scheme?

A: The following programs are covered under this scheme:

  • Bringing private and public sector together for facilitating affordable housing development.
  • Slum rehabilitation
  • Offering credit-linked subsidy for the economically disadvantaged.
  • Constructing and improving beneficiary led houses.

Q: What is this scheme focused on?

A: It focuses on affordable housing for all, especially for the country’s economically weaker sections.

Q: What is the eligibility criterion for this scheme?

A: The following are the clauses:

  • The individual and his/her family should not own any brick and mortar houses under their name or any other family member’s name.
  • Any person currently owing a solid structured (pucca) house cannot apply for this scheme.
  • The maximum income per year to avail EWS or LIG should be up to Rs. 6 Lakh.
  • To avail MIG1, your income should be between 6-12 lakh rupees per year.
  • To be eligible for MIG2, your annual income should be in the range of 12 to 18 lakh rupees per year.

Q: What do you mean by CLSS, MIG, LIG and EWS?

A: CLSS: Credit Linked Subsidy Scheme.

MIG: Middle Income Group

LIG: Low Income Group

EWS: Economically Weaker Sections

Q: What are the processing fees?

A: There are no processing fees for this scheme.

If you fall under the above-mentioned income categories, then you should definitely think about applying for your Bajaj Finserv loan under this scheme. Reputed lenders like Finserv Markets will help you get the best deal for your home loan. You can contact our executives if you have any further doubts regarding this government scheme. 

 

You can contact our executives if you have any further doubts regarding this government scheme.

Find answers to other PMAY FAQs here. 

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