The Pradhan Mantri Awas Yojana, when initially proposed, was meant to serve homebuyers from the lower-income groups. However, with each passing year, several reforms have been brought into the policy and this initiative undertaken by the Indian Government today provides affordable housing to most sections of society. PMAY stands to fulfil the ‘housing for all by 2020’ promise in many ways. One of the most important ways you can benefit from this scheme is to avail PMAY subsidy on your home loan interest rate, which you can claim based on your income and other eligibility criteria. Read on to know more.
What are the eligibility criteria to claim a home loan subsidy under PMAY?
Under the Pradhan Mantri Awas Yojana scheme, a subsidy on your home loan is offered to you through the Credit Linked Subsidy Scheme (CLSS). Once eligible for this scheme, you can claim interest subsidy of up to 6.5% on your home loan interest repayment. Here are the eligibility terms that you need to abide by to claim a home loan subsidy.
- Credit linked subsidy is available at 4% for loans up to Rs.9 lakh, in case you belong to the MIG 1 category.
- Credit linked subsidy is available at 3% for loans up to Rs.12 lakh, if you belong to the MIG 2 category.
- Credit linked subsidy is available at 6.5% for loans up to Rs.6 lakh, if you belong to EWS or LIG category.
You can be earmarked for a category only if you or your cumulative household income every year stands within the specified amount. Here’s what makes you eligible.
- You can be eligible for the EWS segment provided your household annual income stands below Rs.3 lakh.
- You can qualify for the LIG segment provided your annual household income is Rs.3-6 lakh.
- You can qualify for the MIG 1 segment provided your household annual income is Rs.6-12 lakh.
- You can qualify for the MIG 2 segment provided your household annual income is Rs.12-18 lakh.
How is the subsidy calculated on your home loan?
In case a financial institution approves you a loan higher than the eligible amount for which you can claim PMAY subsidy, then the extra amount will not be credit linked to the support. This apart, you can enjoy the support on your home loan for 20 years. However, you are allowed to enjoy the subsidy up to a maximum of 30 years if your age at the end of the tenure is less than 70 years. Here’s a simple calculation to explain the subsidy calculation on your home loan.
Say you take a home loan of Rs.6 lakh, and qualify for the EWS category. Basis the eligibility terms of CLSS, you can claim a 6.5% subsidy on this loan. Initially, your EMI on this loan will get deducted at the normal rate, but once your financial institution submits an application on your behalf claiming the subsidy then instantly your EMIs will reduce. Moreover, you will get the credit for the extra deduction as a lump sum until you start repaying the loan on reduced EMIs. You can use the PMAY eligibility calculator to know the amount of subsidy on your loan in advance, which in this case will amount to Rs.2,67,280.
Along with subsidy, the scheme also offers other benefits to a homebuyer. Knowing about these in advance will help you become a homeowner with greater ease. Here’s what you need to know when availing a home loan under the PMAY scheme.
- PMAY makes use of eco-friendly building material a mandatory clause for developers.
- As per the terms of the scheme, women and weaker sections of the society are given first preference. This scheme promotes mandatory homeownership for women for the LIG/EWS and rural segments. This way, it aims to uplift the status of widows, unmarried women, SC/ST groups and transgender individuals in the society.
- Pradhan Mantri Awas Yojana scheme also makes ground floor accommodation for the senior citizen a compulsory norm.
Abide by these PMAY guidelines to avail a home loan under the Pradhan Mantri Awas Yojana 2019 scheme. When you are ready to become a homeowner, apply for an affordable Home Loan with lenders like Bajaj Finserv and make your loan more affordable via the subsidy.
Here you can get a sanction of up to Rs.3.5 crore for a tenure of up to 240 months. This apart, you can avail a low-interest top-up loan and benefit from the Flexi Loan facility. You can also enjoy easy doorstep pickup of documents to fast track your application. To start right away, check your pre-approved home loan offer and enjoy instant approval online to become a homeowner this year!