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Pradhan Mantri Awas Yojna (PMAY) is a scheme launched by the GOI for the people in below middle income group to help on Housing. Know more on this program and how you could apply?
Pradhan Mantri Awas Yojna (PMAY) is a scheme launched by the Government of India to provide affordable housing to the economically weaker section (EWS), Low income group (LIG), and Middle Income Group (MIG)). The Credit Linked Subsidy Scheme( CLSS) provides subsided interest rates to those who are eligible for this scheme. The aim of the scheme is to achieve the target of ‘Housing for all’ by 31 March 2022.
One of the key objectives of CLSS is to provide housing for the urban poor. The urban poor is divided into two groups, EWS ( with an income of Rs 0- Rs 3,00,000) per annum, and LIG ( with an income of Rs 3,00,000- Rs 3,00,000 per annum). These groups are eligible for an interest subsidy of 6.5 per cent. For this, the unit constructed or purchased should be 60 square meters or less in carpet area. The maximum loan amount is limited to Rs 6 lakh over a home loan for a period of 20 years. The maximum interest subsidy amount is Rs 2,67,280.
MIG is defined as those who have a household income between Rs 6 lakh to Rs 12 lakh per annum. This group is eligible for an interest subsidy of 4 per cent. For this, the carpet area of the unit constructed or purchased should not exceed 160 square meters. The maximum loan amount is limited to Rs 9 lakh for a home loan of a period of 20 years. The maximum interest subsidy amount is 2,35,068.
MIG 2 is defined as the category whose annual income is between Rs 12 lakh and Rs 18 lakh per annum. This group is eligible for an interest subsidy of 3 per cent. For this, the unit constructed or purchased should not exceed 200 square meters in size. The maximum loan amount is limited to Rs 12 lakh for a home loan of 20 years. The maximum interest subsidy amount is 2,30,156.
To be eligible for the PMAY scheme one needs to fulfil certain eligibility criteria. These are:
Here is how to apply for the PMAY scheme:
Existing home loan borrowers can avail this scheme if they fulfil all the required criteria.
There are a few more things to note about the PMAY subsidy. The interest subsidy is available for a maximum loan tenure of 20 years or lower. The interest subsidy is credited upfront to the loan account of the borrower, resulting in a lower EMI. For additional borrowings beyond the specified limit, no interest subsidy is available. Further, there is no upper limit on the loan amount or the cost of the property.
The PMAY scheme is a significant initiative to provide affordable housing for the masses. Check if you are eligible to claim the benefits of the interest subsidy.