According to an official progress report of the Pradhan Mantri Awas Yojana (Urban) initiative, a total of 111.03 lakh houses have been sanctioned till now. Ever since its inception in 2015, the scheme has made considerable headway in its objective of extending affordable housing to the low- and mid-income families in the country.
Illustrated below are all the must-know facts about this scheme and the subsidy it offers:
What is PMAY?
The PMAY(Pradhan Mantri Awas Yojana) is a social welfare initiative launched in June 2015 by the Government of India. It aimed at bringing affordability in housing options for specific categories of individuals in Indian society. This scheme targets to construct 2 crore houses in India’s rural and urban areas by the year 2022. It operates under two categories, namely, PMAY Urban and PMAY Gramin.
Features of PMAY
Illustrated below are some basic features of the PMAY scheme –
- Senior citizens and differently-abled citizens would mandatorily be provided with ground floor accommodation.
- Scheme coverage is being extended to cover all the urban regions of India.
- A subsidy of around 6.5% would be applicable on the home loan interest rate for a period of 20 years.
- Eco-friendly materials would be used compulsorily for building construction.
- The house is to be constructed under the name of the eldest woman member of the family.
Eligibility parameters of PMAY
- Basic eligibility parameters
Eligibility parameters should be met to avail the PMAY subsidy on home loans. Given below are the basic eligibility parameters –
- Beneficiary families who belong to the Middle-Income Group must mandatorily provide their Aadhar details to avail subsidy benefits.
- A beneficiary’s family must not have received any benefit under any prior government housing scheme.
- No member of the beneficiary’s family should hold ownerships of a pucca house in any part of India.
- Eligibility of a single subsidy for married couples would apply to either of the spouse or both in joint ownership.
- Home loan borrowers would be deemed ineligible to claim benefit again if they opt for a balance transfer by switching lenders after initially availing the home loan subsidy.
- Pradhan Mantri Awas Yojana scheme is suitable for all those beneficiary families, which comprise a couple and unmarried children. Irrespective of marital status, an adult earning member in the family would count as a separate household in the MIG category.
- Income-based eligibility parameters
- Middle Income Group 1 (MIG-I) – Rs.6 lakh to Rs.12 lakh
- Middle Income Group 2 (MIG –II) – Rs.12 lakh to Rs.18 lakh
- Lower Income Group (LIG) – Rs.3 lakh to Rs.6 lakh
- Economically Weaker Section (EWS) – Maximum Rs.3 lakh
How to claim the home loan subsidy?
Individuals can claim interest benefit under the PMAY scheme by following the steps below –
- The lender sends necessary information to NHB for validating data after the home loan has been disbursed.
- The NHB approves the subsidy, which applies to eligible borrowers after due diligence.
- Disbursement of subsidy amount for eligible borrowers is processed to the lenders.
- The subsidy amount is credited to the respective loan accounts of borrowers after NHB receives it.
Just like a home loan EMI calculator, potential beneficiaries of the PMAY scheme can use a subsidy calculator to estimate the amount that would apply to them.
Borrowers should exercise utmost responsibility towards their repayments irrespective of the subsidy they can enjoy. This would help them boost their credit score, which would again help them in future to determine home loan EMIs. Apart from this, they would also become eligible for several offers from the NBFCs.
For instance, financial institutions provide pre-approved offers which help in simplifying and accelerating a lending process. These offers are provided on various financial products like home loans, loan against property and more. You can check your pre-approved offer by providing a few details such as your name and contact number.
As the Pradhan Mantri Awas Yojana is a highly beneficial scheme, individuals must know all the details related to it to optimise their advantages. This guide above gives all must-know facts about PMAY and its subsidy.
With such effective factors into play, individuals can access the loans easily and ensure that they can repay the borrowed amount without hassle.