According to official reports, a total of 45.01 lakh houses have been completed as of March 2021, under the Pradhan Mantri Awas Yojana (Urban) scheme. This initiative undertaken by the Government of India is aimed at providing affordability in housing options to specific sections of the society by 2022. Individuals can also avail subsidised interest rates for home loans under this scheme.
Find all the required information for availing a home loan subsidy under this PMAY scheme:
PMAY eligibility
In order to avail home loan subsidy under the Pradhan Mantri Awas Yojana initiative, one must meet the eligibility parameters. Below mentioned are the basic eligibility parameters for availing PMAY benefits.
- Applicants should not own a pucca house anywhere across India under the name of any member of the beneficiary’s family.
- The beneficiary or his/her family members must not have benefitted through any government housing scheme.
- Initially availing a home loan subsidy and then opting for a balance transfer by switching to another lender would make home loan borrowers ineligible for claiming this benefit a second time.
- The initiative is meant for beneficiary families, which comprise a husband, wife and unmarried children. An adult earning family member would be considered a separate household in the MIG category irrespective of marital status.
- For married couples, eligibility for a single subsidy would apply to either of the spouse or both in joint ownership.
- To avail subsidy benefits, it is mandatorily required by beneficiary families belonging to the MIG income group to furnish their Aadhar numbers.
Eligibility parameters based on income criteria
The eligible household income amount applicable for every income category is as follows:
- Lower Income Group (LIG) – Rs.3 lakh to Rs.6 lakh
- Economically Weaker Section (EWS) – Up to Rs.3 lakh
- Middle Income Group 1 (MIG-I) – Rs.6 lakh to Rs.12 lakh
- Middle Income Group 2 (MIG –II) – Rs.12 lakh to Rs.18 lakh
How does a borrower claim the home loan subsidy?
Illustrated below is the process for claiming subsidised interest benefit of the Pradhan Mantri Awas Yojana scheme:
- After disbursement of home loan, the lender sends required information to the National Housing Bank (NHB) for validating data and conducting other checks.
- After due diligence, NHB provides approval to the applicable subsidies for eligible borrowers.
- After the subsidy amount is received by NHB, it gets credited into the respective home loan accounts of the borrowers.
How to apply for PMAY benefits?
- Visit the official PMAY website https://pmaymis.gov.in/ and click on the tab ‘Citizen Assessment’.
- Click on the tab ‘Benefits under other 3 components’.
- Input Aadhar details in the specified area and click ‘Check’.
- Fill PMAY application form correctly, which is provided after Aadhar details are entered correctly.
- Notify being aware of the claims, etc., by ticking the appropriate box.
- Click on the ‘Save’ tab.
- Finally, an application number is generated, which needs to be preserved for future reference.
Even after receiving a subsidy, home loan borrowers must be responsible for repayment. That would boost their credit score, which in turn helps determine home loan EMIs in the future. In addition to that, they would be eligible for several offers from financial institutions.
For instance, financial institutions provide pre-approved offers, which help in simplifying and accelerating a lending process. These offers are provided on various financial products like home loans, loans against property and more. You can check your pre-approved offer by providing a few details such as your name and contact number.
For efficiently repaying home loan EMIs, borrowers can estimate payable home loan EMIs using a home loan EMI calculator.
It is evident that the Pradhan Mantri Awas Yojana initiative would highly benefit potential home loan seekers. The above-mentioned are details that are required to be known for availing subsidy under this scheme.
