How to avail housing loan subsidy under Pradhan Mantri Awas Yojana?

HomeFinancial

How to avail housing loan subsidy under Pradhan Mantri Awas Yojana?

In June 2021, nearly 708 proposals to construct 3.61 lakh houses were approved under PMAY Urban. However, there’s still a long way for PMAY to reach t

Things to Know before Applying for a Personal Loan
What Advantages Do Michigan Online Casinos Offer?
Simple Tips for Credit Card ATM withdrawal charges

In June 2021, nearly 708 proposals to construct 3.61 lakh houses were approved under PMAY Urban. However, there’s still a long way for PMAY to reach the target of 1.12 crore houses by 2022. While this government initiative provides affordable homes to low and middle-income groups, willing applicants need to comply with stringent eligibility to qualify for the same. 

Therefore, individuals planning to apply for PMAY subsidy need to know the requisites and application process to optimise the entire process. 

PMAY application process 

Applying for a PMAY subsidy is straightforward, and you can opt for either an online or offline procedure.

  • Online process

Following are the steps to apply for PMAY subsidy online: 

  1. Visit the official website of PMAY and navigate to ‘Citizen Assessment’. 
  2. Click on ‘Apply Online’ and select a scheme that applies to you. 
  3. Enter your Aadhaar number, name and other details to authenticate.
  4. Duly fill up the online form and enter the captcha and click on ‘Submit’. 

The form is submitted provisionally. During the process, you can also check the application status through this platform itself. 

  • Offline process

Besides online, you can also apply offline for a PMAY subsidy. Here are the steps – 

  1. Visit the nearest Common Service Centre (CSC) or PMAY listed financial institution. 
  2. Pay a registration fee of Rs.25 plus GST and duly fill-up the application form. 
  3. Submit the form alongside necessary documents. 

However, remember to apply for a home loan under Pradhan Mantri Awas Yojana scheme only from reputed HFCs. It will help maintain transparency. Besides, you should also check the eligibility criteria of PMAY to enjoy guaranteed approval. 

Who are eligible for PMAY subsidy?

PMAY benefits are available to individuals belonging to various economic backgrounds. It includes:

  • Economically weaker section (EWS)

The annual household income should not exceed Rs.3 lakh. They are eligible for a loan amount of up to Rs.3 lakh at a subsidised interest rate of 6.5% annually. 

  • Low-income group (LIG)

The income of this earning group should range from Rs.3 lakh and Rs.6 lakh per annum. The maximum housing loan amount they can avail is Rs.3 lakh with an interest subsidy of 6.5%.

  • Middle-income group I (MIG I)

The annual income of this particular group should range from Rs.6 lakh to Rs.12 lakh annually. They are eligible for a loan amount of up to Rs.9 lakh at an interest rate of 4%.

  • Middle-income group II (MIG II)

This income group comprises individuals with an annual income ranging between Rs.12 lakh and Rs.18 lakh p.a. The loan amount they are eligible for is up to Rs.12 lakh with a PMAY subsidy of 3%. 

Besides, individuals also need to meet the following basic eligibility criteria to qualify for PMAY subsidy:

  • Applicants must not have ownership of a pucca or concrete home in their or any of their family member’s names.
  • The beneficiary should not have applied for any central assistance for housing schemes from the central or state government. 
  • Beneficiary households should not have availed CLSS before. 
  • This scheme covers all statutory cities, villages and Union Territories.
  • The construction or extension for which the loan is opted for should be completed within 36 months from the loan disbursement date. 

Note that for EWS and LIG category, the female head of the family should own or jointly own the said property. 

Irrespective of the segment you belong to, you need to fulfil the eligibility parameters for the respective group. Top financial institutions offer a CLSS linked home loan at subsidised interest rates and other benefits. 

Existing home loan borrowers can also avail pre-approved offers that simplify the loan application process. Such offers are also available on several financial products like loans against property, home loans, etc. You can check your pre-approved offer online by entering your name and contact number. 

How to claim the PMAY subsidy?

Once the applicant can view his/her name on the PMAY list, he/she can approach a reliable financial institution and apply for a home loan under PMAY subsidy scheme. In this process, borrowers can also compare different lenders for better rates and terms.

After your loan application approval, you can service a home loan with subsided interest rates. You can also avail PMAY subsidy calculator and check total interest payable and EMI outgo for better understanding. 

These are the steps and factors that help individuals to avail PMAY subsidy on a home loan. However, besides a loan, this scheme also offers several other benefits like central assistance of Rs.1 lakh per house for slum dwellers.

COMMENTS