Key Facts About Home-Loan Subsidy Under PMAY
In order to fulfill Prime Minister Narendra Modi’s ambitious Housing For All mission, the government has revamped the Pradhan Mantri Awas Yojna (PMAY) that will cater to the housing needs of the mid-income segment apart from the economically weaker section and the low-income section. The PMAY has four components, one of which is credit-linked subsidy scheme (CLSS) to weaker and mid-income sections on home loan taken for new construction or renovation of existing homes. The subsidy is paid by the government under direct benefit transfer, routed through banks.
Here is all you need to know about home loan subsidy and benefit under the PMAY:
Under the CLSS, an applicant from the MIG category with an annual income of above Rs 6 lakh and up to Rs 12 lakh gets an interest subsidy of four per cent on a 20-year loan component of Rs 9 lakh. Those with annual income exceeding Rs 12 lakh and up to Rs 18 lakh would get interest subsidy of three per cent.
Eligibility for PMAY subsidy under LIG/MIG Scheme
For those in the EWS and LIG category who wish to take a loan of up to Rs 6 lakh, there is an interest subsidy (concession) of 6.5 per cent for a tenure of 15 years under Pradhan Mantri Awas Yojna. The interest subsidy on loans up to Rs 12 lakh will be three per cent.
Facts about PMAY home loan subsidy:
1) Home loans applied for on or after June 17, 2015, are eligible for subsidy.
2) To avail of the benefits, the applicant must have an Aadhar Card.
3) The lender should have executed a memorandum of understanding (MoU) with the National Housing Bank (NHB) or the Housing and Urban Development Corporation (HUDCO). Check out the link to know about the list of lenders who are enrolled with the NHB and the HUDCO.
4) A beneficiary family should not have availed of the Central assistance under any housing scheme earlier.
5) Annual family income shall not exceed Rs 6 lakh.
6) The family shall not own a pucca house anywhere in India. This criterion does not apply in case of extension of the house.
7) The property should be purchased in the name of a woman.
8) The unit to be purchased or constructed should fall within town limits identified as per 2011 census by the Central government.
Applicants from the MIG-I and -II can avail of PMAY subsidy of upto Rs 2.35 lakh under the CLSS.
1) Home loans obtained on or after January 1, 2017, qualify for a subsidy under this scheme. However, borrowers should check whether the lender has executed MoUs with the NHB or the HUDCO. The detailed list of approved finance companies is available with Ministry of Housing. You can download the list here
2) The annual family income should not exceed Rs 12 lakh under the MIG-I and Rs 18 lakh under the MIG-II scheme.
3) The carpet area of the property being purchased/constructed should not exceed 90 square metre (sqm) in case of the MIG-I category, and 110 sqm in the MIG-II category.