The introduction of Pradhan Mantri Awas Yojana in 2015 has significantly affected the real estate market in India. In a recent announcement, the government has approved the construction of around 1.68 lakh houses in urban India under this plan. It has taken the total tally to around 1.1 crore houses.
This scheme has presented an opportunity for first-time homebuyers to source required funds and avail subsidy on housing credit. The PMAY subsidy is available to every applicant, considering the fact that they meet the required eligibility norms.
How to avail of PMAY benefits
Nevertheless, to avail of the PMAY subsidy, one needs to apply through a financial institution registered to extend the loan. Following registration for PMAY, borrowers need to mention that on their loan application.
After successful loan approval and disbursal, the lender will claim for this benefit on behalf of a debtor. After they receive the amount, they will credit it to the respective individual’s account, reducing the EMI.
Know more about the PMAY subsidy
Borrowers of EWS, LIG, and MIG are eligible for a subsidy on their housing loan availed under this scheme. Here are the highlights –
- Economically weaker section (EWS)
Individuals with an annual income of up to Rs.3 lakh are categorised under this group. They can avail of a 6.5% subsidy on their home loan of up to Rs.6 lakh. The maximum subsidised amount here is capped at Rs.2.67 lakh. The units are restricted to 30 square metre carpet areas.
- Lower-income group (LIG)
Borrowers with an annual income of up to Rs.6 lakh are eligible under this category, and they get up to 6.5% subsidy on a housing loan amount of up to Rs.6 lakh. The maximum concession amount is also the same as before, but the carpet area here is limited to 60 square metres.
- Middle-income group 1 (MIG)
Individuals with an annual income of up to Rs.12 lakh are a part of this group. They can receive a subsidy on a home loan under PMAY of up to Rs.9 lakh at 4%, which amounts to Rs.2.35 lakh. The maximum available carpet area here is 160 square meter.
- Middle-income group 2 (MIG)
Prospective homebuyers with an annual income of up to Rs.18 lakh are eligible in this class. They qualify for a subsidy of up to Rs.2.30 lakh on a loan amount not exceeding Rs.12 lakh. The rate of subsidy here is 3% on a unit whose carpet area can be up to 200 square metres.
Apart from this, under PMAY-Gramin, applicants can receive a subsidy of 3% on a home loan of up to Rs.3 lakh.
Nevertheless, to avail of the PMAY benefits, one needs to meet the required eligibility norms.
Read Also: Top 6 Effective Ways to Increase Your Home Loan Eligibility
Eligibility criteria of PMAY subsidy
- Only first-time homebuyers eligible for PMAY.
- Applicants or their immediate family member cannot own a pucca house anywhere in India.
- Additionally, beneficiaries must not have availed of any other government housing scheme.
- The location of a property must be in the statutory towns as per the 2011 Census.
- Female ownership, be it single or joint, is mandatory to avail funds under this scheme.
When looking for the perfect lender for housing credit, one should be on the lookout for pre-approved offers. It shortens the loan application process and saves time. Such offers are applicable to financial products like home loan, loan against property, etc. Individuals can check their pre-approved offer by submitting their contact details.
The PMAY subsidy has acted as a boon for the prospective homebuyers of this country. With the help of this scheme, they can now get the necessary funds that ease their way of becoming a homeowner.
