The Government of India launched the Pradhan Mantri Awas Yojna Scheme to provide affordable houses in urban and rural regions of India. In the Union Budget of 2019, the Government announced its goal of constructing 1.95 Crore housing for all by the end of the financial year 2022.
The PMAY came into effect on 25th June, 2015 to provide home loan at a subsidised interest rate to those who meet the eligibility criteria. Under the scheme, all the houses are constructed using eco-friendly technologies.
One of the key benefits of the PMAY is that it provides preference to the disabled, transgender, women, and individuals from the minority society. It also provides subsidy to the senior citizens of the country.
To avail a subsidy under the scheme, you have to meet the PMAY eligibility criteria. The required criteria are divided into three categories depending on your annual income.
- Economically weaker sections (EWS): You fall under this category if your yearly income is less than Rs. 3 Lakh.
- Lower-income group (LIG): Applicants having an annual pay ranging between Rs. 3 Lakh and Rs. 6 Lakh can avail a subsidy under the Pradhan Mantri Awas Yojana 2019 scheme.
- Middle-income group (MIG): it is further divided into two categories, that is, MIG-I and MIG-II. If your yearly income ranges between Rs. 6 Lakh and Rs. 12 Lakh you fall under the MIG-I category. To qualify in the MIG-II category, you should have a yearly pay between Rs. 12 Lakh to Rs. 18 Lakh.
The net usage floor allowance
- MIG-I: Applicants falling under this category are eligible for a net usage floor up to 120-square metres.
- MIG-II: If you belong to this category, you can qualify for a carpet area of 150-square metres.
- LIG: Applicants under this category can be eligible for a net usage floor up to 60-square metres under the Pradhan Mantri Awas Yojana loan subsidy scheme.
- EWS: Individuals belonging to this category can use net floor area up to 30-square metres.
Subsidy in home loan interest rate
- MIG-I: Individuals belonging to this category can enjoy an allowance of 4% and a loan amount up to Rs. 9 Lakh.
- MIG-II: According to Pradhan Mantri Awas Yojana 2019 scheme applicants can enjoy a subsidy of 3 % with a loan amount up to Rs. 12 Lakh.
- LIG: Applicants can enjoy a subsidy of 6.5% with a loan amount up to Rs. 6 Lakh.
- EWS: The PMAY eases your way to becoming a homeowner if you fall under this category. Individuals under this category can avail a loan amount up to Rs. 6 Lakh at a subsidy of 6.5%.
The application for a home loan subsidy under the Pradhan Mantri Awas Yojana scheme is convenient and can be done online. To apply, visit their official website and select your category under the ‘citizen assessment link’. Once you have chosen your category, register yourself with your Aadhaar number and fill the application form with some of your required personal and financial details. After you submit the application form, download a digital copy of the same for your future reference.
However, if you do not qualify for a subsidised home loan interest rate under this scheme, you can avail a loan at attractive interest rates from several financial institutions and NBFCs. Bajaj Finserv is one such NBFC that provide Home Loan at a competitive interest rate against minimum documentation with minimal pre-payment and foreclosure charges. They also offer instant approval, flexible EMI options, prolonged tenor, online account access, loan amount up to Rs. 3.5 Crore and other lucrative benefits.
Bajaj Finserv also brings in pre-approved offers to make the application process fast and hassle-free. These pre-approved offers are available on secured credits such as home loans and unsecured advances like business loans and personal loans. You can check your pre-approved offer by sharing minimal details like your name and phone number.
The tenor you can enjoy under the PMAY scheme is around 20 years and can be extended to 30 years if you are below 70 years of age. Also, to be eligible, you should have a regular source of income ranging anywhere between the mentioned limits and a family, including your spouse and unmarried children.