When the Indian Government introduced PMAY (Pradhan Mantri Awas Yojana) in 2015, it was hailed as a revolutionary move. The PMAY subsidy scheme is aimed at uplifting the country’s financially-deprived population. This credit-linked subsidy scheme aims to provide affordable housing by providing home loan borrowers with a subsidy on their home loan interest rates.
PMAY promised to provide ‘housing for all by the year 2022, with all the basic amenities like electricity, water, and proper sanitation.
PMAY Scheme Scope and Eligibility
The section of the population to be benefited from this subsidy scheme includes –
Economically Weaker Sections and Lower-Income Group
Applicants from both categories receive almost equal benefits except for their allotted carpet area. Both the sections are allowed to avail an interest subsidy of 6.5% on a loan amount of up to Rs. 6 Lakh. The repayment tenor has been extended by up to 20 years from 15 to encourage more citizens to apply for the Pradhan Mantri Awas Yojana subsidy scheme. The carpet area allotted for EWS is 322 sq. ft. and for LIG, it is 645 sq. ft.
Middle Income Group
They are categorized into –
- MIG-I – Applicants under the MIG-I section can avail of an interest subsidy of 4% on their home loan interest rate on a loan amount of up to Rs. 9 Lakh. The tenor is set at 20 years, and the allotted carpet area is 1772 sq. ft.
- MIG-II – Under the MIG-II section, the applicants are eligible for a subsidy of 3% on Rs. 12 Lakh loan amount and a maximum tenor of 20 years. The allotted carpet area is 2152 sq. ft.
Special Priority for Women Applicants
Widows and women who are the sole earning members of their families are entitled to higher priority under the Pradhan Mantri Awas Yojana 2019 Scheme. Along with these, senior citizens and physically-challenged people will be given a higher priority. This is how PMAY eases your way to becoming a homeowner.
Housing Loans Under PMAY Scheme
The Pradhan Mantri Awas Yojana loan scheme enables a borrower to enjoy subsidies on the home loan interest rate based on their eligibility criteria. It outlines –
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An applicant must not own a ‘pucca’ residence.
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You cannot apply for this scheme if you are already enrolled in any other Government housing schemes.
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The house’s carpet area is within a range of 645-2150 sq. ft. depending on which income slabs you fall under.
Therefore, it is essential to check your PMAY eligibility to enjoy the key benefits of the PMAY (Pradhan Mantri Awas Mantri) scheme.
How to Avail This Subsidy Scheme?
Start by contacting reputed financial institutions and NBFCs covered under the PMAY subsidy scheme. For instance, you can avail of affordable housing loans from lenders like Bajaj Finserv and reduce your home loan EMIs under this CLSS (credit-linked subsidy scheme). Besides, if your current lender is not covered under the PMAY scheme, you can consider an easy home loan balance transfer to them with nominal documentation. Moreover, you also enjoy additional benefits like –
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High-value top-up loan to fund immediate financial necessities.
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Flexible repayment tenor.
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No extra charges on prepayment and foreclosure of the loan.
Once you are an eligible borrower, the lender will hand you a loan subsidy application. Fill it up with all the necessary information and submit it along with all relevant documents. Upon verification, your housing loan amount will be disbursed. Once this is initiated, your lender will approach the nodal agencies to include your account with the PMAY subsidy you’re entitled to.