According
to a report, 35 lakh houses constructed under the Pradhan Mantri Awas Yojana or
PMAY have already been handed over to their respective beneficiaries. The sole
objective of this credit-linked subsidy scheme or CLSS subsidy is to provide
affordable housing to everyone. The PMAY scheme was introduced in 2015,
allowing individuals from economically challenged backgrounds to acquire a
residential property.
When
looking to avail the benefits of this CLSS subsidy, you must know that it can
be divided into two sections, namely PMAY Urban and PMAY
Gramin.
A brief idea regarding
PMAY-U and PMAY-G
PMAY-U
or Urban is a credit-liked subsidy housing scheme operated by the Ministry of
Housing and Urban Affairs. Its goal is the construction of affordable
residential properties for individuals belonging to economically challenged
households located in urban regions.
Similarly,
PMAY-G or Gramin is an affordable housing scheme, providing pucca houses to
homeless individuals across the rural regions in India. One thing to remember
is that Chandigarh and Delhi are the only places which are unqualified from the
benefits of PMAY Gramin scheme.
Salient features of the
PMAY scheme
The
Pradhan Mantri Awas Yojana offers the following benefits to eligible applicants
–
·
Home loan interest
rates are subsidised by up to 6.5% if the tenure of the advance is not more
than 20 years.
·
Eco-friendly materials
are used for the creation of these properties.
·
Senior citizen and
differently-abled beneficiaries are provided ground floor accommodation under
this CLSS subsidy.
·
To avail benefits under
this scheme, the property in question must be registered in the names of both
the male and female heads of a family, unless there are no female family
members.
These
are just some of the key benefits of the Pradhan Mantri Awas Yojana Gramin and
Urban. The exact subsidy that one can receive depends on his/her family’s
annual income.
Eligibility factors
under PMAY
Before
applying for this scheme, one should know the PMAY eligibility criteria. In
general, only first-time homebuyers can avail this subsidised rate.
Additionally, here are the criteria for the different categories –
1.
EWS/LIG
Family
income for applicants under this group should range between Rs.3 lakh and Rs.6
lakh. By the end of the loan tenure, an applicant must not be aged more than 70
years. Moreover, the maximum tenure for such housing loans should not exceed 20
years.
2.
MIG-I
To
avail credit under this scheme, applicants must possess a family income ranging
between Rs.6 lakh and Rs.12 lakh per year. You can avail subsidies of up to 4%
on loans up to Rs.9 lakh. If you avail higher sums, no subsidies will apply on
the additional amount.
Another
requirement for this CLSS subsidy is that the total discount cannot be more
than 50% of your household’s gross income. Tenure for such home loans tends to
range between 20 and 30 years if the borrower’s age is less than 70 years by
the end of this repayment term.
3.
MIG-II
Income
requirement for this group is between Rs.12 lakh and Rs.18 lakh per annum. You
can avail a home loan with an interest rate subsidy of 3% for a home loan
amount of up to Rs.12 lakh. For any additional sum you acquire, no subsidised
rate would be applicable. Here too, the repayment term can extend up to 30
years if the borrower is less than 70 years old by the tenure ends.
Urban
residents can get a house via PMAY under the MIG-I and MIG-II brackets. With
such features, affording a residential property has become much simpler.
Eligible
candidates can qualify for home loan interest subsidies worth up to Rs.2.67
lakh through the PMAY scheme. However, one must first
search for a suitable lending institution, offering such credit-linked subsidy
scheme loans. While many reputed financial institutions offer such advances,
you should compare the base rates on offer from these HFCs to ensure minimum
interest liabilities on your housing loan.
Some
HFCs also provide pre-approved offers to ease the loan application process
significantly. These offers are available on a range of financial products,
including home loans, loans against property, and more. You can check your
pre-approved offer by submitting a few essential personal details.
Under such a scheme, the government of India bears the subsidised interest on a home loan on your behalf, while you service the rest. With significant deductions, such a scheme has the potential to reduce your EMIs substantially.
