The Pradhan Mantri Awas Yojana (PMAY) is an effective financial scheme for those looking get a home of their own. This scheme, launched by the Indian government, offers subsidies on home loan interest rates to make housing options more affordable for low and middle income groups.
Listed below are the main features of the PMAY:
Schemes for Different Sections: The subsidies are available to three groups—the middle income group (MIG), the lower income group (LIG), and the economically weaker section (EWS). If you fall under any of these, you can apply for a home loan under PMAY.
Subsidies: The subsidies are available on the housing loan interest rate. You can get the loan at a low rate of interest and save money on your overall home financing expenses.
Partners: The government has appointed two nodal agencies—HUDCO and NHB—to oversee the workings of the PM Awas Yojana. These agencies have tied up with some Indian banks and non-banking financial institutions to offer the subsidies.
Applying for the Subsidized Loan: You can easily apply for the subsidized loan. First, you need to determine the category you fall under. Next, locate a home loan provider that is enrolled in the PMAY programme. Submit the regular home loan application. Along with that, submit a letter stating your desire to opt for PMAY. If you are found eligible, your home loan will be disbursed at a subsidized rate.
Eligibility: If you are an Indian citizen and your family’s combined income is below Rs 18 lakh a year, you will be eligible for the home loan subsidy. But if you already have a pucca house, you won’t qualify for the home loan subsidy under PMAY.
Beneficiary: A beneficiary family can comprise husband, wife, and unmarried son(s) and/or unmarried daughters. Irrespective of the marital status, an adult earning member can be treated as a separate household.
The PMAY is a very handy financial scheme. If you’re tied down by financial constraints, this is time to break free to realize your dream of a home of your own.
Subsidies Based on Incomes
So how is the subsidy amount decided? Well, it is very simple—the lower the income of the applicant, the higher the subsidy. Take a look at the following chart to get a better idea:
|Group||Loan amount (Max)||Salary of applicant(Max)||Subsidy rate (Max)||Subsidy amount (Max)|
|MIG||Rs 12 lakh||Rs 18 lakh annually||3%||Rs 2.3 lakhs|
|LIG||Rs 6 lakh||Rs 6 lakh annually||6.5%||Rs 2.6 lakhs|
|EWS||Rs 6 lakh||Rs 3 lakh annually||6.5%||Rs 2.6 lakhs|
So, you need to know what your exact salary is and apply for the loan by stating the correct category. A clear and error-free application will help you get the loan in a smooth manner.
Choosing the Home Loan provider
As already mentioned, there are many banks and non-banking financial institutions enrolled in the PMAY scheme. You must weigh your options and find a suitable lender. You can also avail the facility of pre-approved home loans. NBFCs bring you pre-approved offers for home loan and other financial services. Not only does this simplify the process of availing financing, but also helps you save on time.
In a Nutshell
To put it in a nutshell, PMAY is a very useful aid for getting your own home. It is the easiest and more affordable to get a home loan. You can make use of this scheme if you belong to the MIG, LIG, or EWS categories. Choose your lender carefully and ensure you get a good deal on your home loan. Pay the EMIs on time and enjoy the luxury of being a home owner.