Are You Eligible For A Home Loan Subsidy?

To make housing affordable for all in India, the Government rolled out the initiative of the Pradhan Mantri Awas Yojna- PMAY home loan subsidy that was focused on the urban underprivileged groups categorised as, Economically Weaker Sections-EWS, Lower Income Groups- LIG and on Middle Income Groups- MIG of the society. It was introduced with the announcement of Housing for All by 2022. 

The scheme has four integral segments:

• Rehabilitation of existing slum dwellers by utilising land through a private partnership. 
• Subsidy for beneficiary supported residential construction and or any enhancement. 
• Affordable housing through varied partnerships
• Credit Linked Subsidy Scheme (CLSS)

To provide suitable living options for the urban dwellers, the Government is urging these first-time homebuyers to apply for a home loan through banks and financial institutions that have tied up with the Government to offer them a home loan subsidy. To make the entire process simple, the Credit Linked Subsidy Scheme assists the borrower through the complete procedure from application to allotment at subsidised interest rates. 

Who is eligible for PMAY? 

• An applicant who does not presently own a dwelling unit on their name or the name of any family member. Applicability to any property held in any part of India. 
• The applicant or the family should not have benefitted from any central assistance under any other housing scheme of the Central Government to use this scheme. 
• Under the PMAY, the CLSS scheme allows any applicant who is of considerable age. That is an adult earning member of the family, who does not have a house on their name. Even if they currently reside with their family will be considered as an applicant to apply for this scheme. 

If the loan amount exceeds INR lac, the additional loan amount is not considered under the subsidised rate of the scheme. The borrower can enjoy a maximum repayment of the loan for 20 years. It elaborates the different segments of the scheme to highlight who is eligible for Pradhan Mantri Awas Yojana. 

How to assess if the applicant is eligible for the Pradhan Mantri Awas Yojana scheme subsidy?
To check who are eligible for PMAY scheme, review the below criteria.

General Criteria:

• The applicant should apply as an unmarried individual applicant
• The applicant could be a representative of your family, which includes your parents, spouse or any unmarried children. 
• The applicant or another family member should not present own a proper house. If you do own an adequate home, you are unfit to apply for the PMAY scheme. 
• The applicant or family should not have availed any other benefits or facilities of any other Government Housing Scheme in the recent past. 
• An Aadhar Card is mandatory to apply for the home loan subsidy. 

Income Criteria: 

• Under the Economically Weaker Sections category, the annual household income of the applicant should be below INR 3 lacs. 
• Under the Lower Income Groups category, the combined annual household income should range between INR 3 lacs to INR 6 lacs. 
• Under the Middle- Income Groups-I, your annual household income should be anywhere between INR 6 lacs and INR 12 lacs. 
• Under the Middle- Income Groups-II, your annual household income should be under INR 18 lacs. 

If the applicant meets all the criteria for the PMAY home loan subsidy, the application can be submitted and processed further. 

How to claim the PMAY subsidy?

• Enrol for the Pradhan Mantri Awas Yojana scheme. Choose the lender of your choice who has partnered for this scheme. 
• Compare the loan offerings present as per their maximum loan amount sanction capability and interest rates offered. 
• Once your application is approved, the principal amount is credited to your bank account. 
• The bank or financial institution lending you the funds, will claim the subsidy on your behalf from the Government. 
• Once the subsidy is received, the bank will credit the funds to your home loan account, and your EMIs will reduce as per the drawn-out structure. 

It is a simple process to claim the subsidy for those individuals who are eligible for Pradhan Mantri Awas Yojana. 

Do note that initially, the applicant will have to match up the EMIs on the regular interest rate applicable and not on the subsidised interest rates offered through the scheme. The PMAY home loan subsidy is an initiative most of the individuals should make use off. If you are eligible for this scheme, do apply here.

Related Articles:

• Own A Home with Pradhan Mantri Awas Yojana
• Making The Most Of PMAY for EMI Reduction
• Government Gives Major Boost To Housing And Home Loans in India

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