Homeownership is a dream for many people in India. It is not just a status symbol but also a sense of accomplishment. To help millions of people in India realize this dream, the government of India has launched the Pradhan Mantri Awas Yojana (PMAY). PMAY is a scheme that provides affordable housing to the economically weaker section (EWS), low-income group (LIG), and middle-income group (MIG) sections of society.
Under PMAY, the government provides home loan subsidy to eligible beneficiaries, making it easier for them to avail of housing loans at concessional interest rates. The subsidy reduces the cost of the housing loan, making the monthly EMI affordable for the borrower. In this article, we will discuss how one can avail home loan subsidy under PMAY in a step-by-step guide.
Step 1: Check Your Home Loan Eligibility
Before applying for a housing loan, you need to check your home loan eligibility. The eligibility criteria under PMAY is as follows:
For EWS/LIG category:
The annual household income should be up to Rs 6 lakhs for the EWS category and up to Rs 12 lakhs for the LIG category.
For MIG-I:
The annual household income should be between Rs 6 lakhs to Rs 12 lakhs.
For MIG-II:
The annual household income should be between Rs 12 lakhs to Rs 18 lakhs.
Apart from the income, there are other factors that determine your home loan eligibility, such as age, credit score, existing debts, and job stability.
Step 2: Choose an Appropriate Housing Loan
Once you know your home loan eligibility, you can choose a housing loan that suits your requirements. You can check the home loan interest rates of various banks and financial institutions, compare them and choose the one that offers the lowest interest rate. Keep in mind that your eligibility and loan amount will depend on the value of the property you intend to purchase. Most banks offer up to 80% of the property value as a loan amount.
Step 3: Apply for PMAY Home Loan Subsidy
Once you have chosen the housing loan provider, you can apply for home loan subsidy under PMAY. You can visit the official PMAY website at pmaymis.gov.in and click on “Citizen Assessment” to apply online. Or you can visit the nearest Common Service Center (CSC) or housing finance company to apply offline.
You will be required to provide your Aadhaar number, personal details, the property’s value, and other necessary information while applying for the subsidy. Make sure to keep all the required documents handy to avoid any hassle.
Step 4: Wait for Subsidy Approval
Once you have applied for the PMAY home loan subsidy, you need to wait for the approval. The government officials will verify your application and if found eligible, your subsidy amount will be calculated based on the income category you fall under.
For EWS/LIG category:
The subsidy amount will be 35% of the loan amount, subject to a maximum of Rs 2.67 lakhs.
For MIG-I:
The subsidy amount will be 4% on a loan amount up to Rs 9 lakhs, subject to a maximum of Rs 2.35 lakhs.
For MIG-II:
The subsidy amount will be 3% on a loan amount up to Rs 12 lakhs, subject to a maximum of Rs 2.30 lakhs.
The subsidy amount will be credited to your loan account, reducing the outstanding loan amount and making the monthly EMI affordable.
Step 5: Benefits of PMAY Home Loan Subsidy
The PMAY home loan subsidy has numerous benefits. Here are some of the key benefits of availing of the subsidy:
- Lower interest rates: The subsidy reduces the cost of housing loans, making them more affordable for borrowers.
- Affordable EMIs: The subsidy reduces the loan amount, making the monthly EMI affordable for borrowers.
- Long repayment tenure: Under PMAY, the maximum repayment tenure for a housing loan is 30 years, making it easier for borrowers to repay the loan amount.
- No collateral required: Housing loans under PMAY do not require any collateral or collateral security, making it easier for borrowers to avail of the housing loan.
Conclusion
Homeownership is a dream for everyone, and PMAY has made it easier for millions of people in India to realize this dream. Availability of the PMAY home loan subsidy can help you reduce the cost of housing loans, making it more affordable for you. Follow the steps mentioned in this article to avail of the subsidy and enjoy the benefits of affordable housing loans.
