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Pradhan Mantri Home Loan Scheme

Know-How to Avail Subsidy Under Pradhan Mantri Home Loan Scheme 2020

in Real Estate
Avail Subsidy Under Pradhan Mantri Home Loan Scheme

The Pradhan Mantri Yojana scheme has brought with it a broad range of benefits for all first-time homeowners. Out of several prime advantages of this scheme, a subsidy on the interest rates of the housing loan is one of them. Based on your eligibility, you can apply for PMAY and claim PMAY subsidy on your housing loan easily. Here, the determining factor is the income bracket, which allows one to purchase a home that fulfils the carpet-area norms set forward by this scheme.

Check Your Eligibility for Pradhan Mantri Awas Yojana 2020

To access all PMAY benefits and subsidies, one must fulfil the following eligibility criteria –

  • You and your family cannot own a ‘pucca’ house. If you are looking for a residential property, you are eligible to apply for a home loan under this ‘housing for all’ scheme.
  • One must not avail any facilities and benefits from any other Government housing schemes in the past.
  • You need your Aadhaar card for applying under this scheme.
  • One’s annual household income must be within Rs. 3 Lakh to qualify for Pradhan Mantri Yojana under the EWS category.
  • To qualify for PMAY under the LIG category, the combined household income must lie between Rs. 3 to 6 Lakh.
  • Your annual household income must be between Rs. 6 to 12 Lakh to qualify under the MIG I category.
  • To qualify under the MIG II segment, the annual household income should not exceed Rs. 18 Lakh.

Apart from these criteria, the applicant must either apply as a representative of a family or as an unmarried individual under the Pradhan Mantri Awas scheme.

Maximum Subsidy One Can Claim

Under the PMAY scheme, one can claim a maximum subsidy of Rs. 2.67 Lakh on a housing loan. The subsidy percentage which you can claim depends on your income category and the house’s total carpet area.

Here’s what you need to know –

  • If one falls under the LIG or EWS category – one can claim a 6.5% credit-linked subsidy on a Pradhan Mantri Awas Yojana loan of up to Rs. 6 Lakh. The total carpet area must be 30 sq. mt. for the EWS category and 60 sq. mt. for the LIG category.
  • You can claim a 4% subsidy on home loans of up to Rs. 9 Lakh for the MIG I category applicants. You can only claim this subsidy if you purchase a home having a carpet area 160 sq. mt.
  • A 3% credit-linked subsidy on housing loans of up to Rs. 12 Lakh can be claimed for MIG II applicants. You are eligible to claim this subsidy only if the home’s carpet area is 200 sq. mt.

These are the key benefits of the Pradhan Mantri Awas Yojana (PMAY) scheme that you need to know. Apart from these, you can also gain subsidies on your housing loan if you utilize funds from your sanctioned amount for construction and renovation purposes. However, one must always check the Pradhan Mantri Awas Yojana eligibility criteria before applying under the credit-subsidy scheme.

How to Claim PMAY Subsidy?

After enrolling for the PMAY scheme, one can apply for a housing loan from a lender based on preference. Make sure your lender is listed under the PMAY; compare between various lenders and their offerings as per the home loan interest rates. Once your application gets approved, you will receive the loan amount in your bank account.

Only then can a lender claim PMAY subsidy on your behalf from the Indian Government. On receiving, this will get credited to your housing loan account, and the EMIs will start reducing according. However, this takes a few months to process, and one gets compensated for the excess he/she has already paid towards the interest obligation.

Hence, you can also consider lenders such as Bajaj Finserv for availing a Home Loan of up to Rs.5 Crore*T&C* at attractive interest rates. Along with it, you enjoy instant approval, fast disbursal of the sum and flexible repayment experience.

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