How to get the Home Loan subsidy under the Pradhan Mantri Awas Yojana?: Pradhan Mantri Awas Yojna (PMAY) from the Narendra Modi government, under which the beneficiaries get subsidy on interest rate of their home loan. The most important term to be eligible for PMAY is that none of your family members should own a house already. In case you are married, you and your spouse will be eligible for a common home loan subsidy. Also, those people who have enjoyed the benefits of an earlier housing scheme are also ineligible for this scheme.
Applicants are classified into three categories based on their annual income. They are as follow:
- Economically Weaker Sections (EWS) and Lower Income Groups (LIG) are those with income up to INR 6 lakhs
- Middle Income Group (MIG) comprises of those with income between INR 6 lakhs and INR 18 lakhs.
Amount of Home Loan
On the basis of income group, the carpet area of the house should not exceed 60 to 200 square meters. The interest rate subsidy is something between 3% and 6.5% for a loan amount of INR 6 lakh to INR 12 lakh. As an example, EWS and LIG get an interest rate subsidy of up to 6.50% for a maximum loan amount of INR 6 lakh. Note that you don’t get interest rate subsidy on the complete amount of loan. Also, the subsidy will be granted for only loans with 20 years of tenure. However, there is no limit on the loan amount or the size of the property. But interest rate subsidy will be available only up to a limit.
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Once the loan is sanctioned, your details are verified. After the loan gets cleared, you are eligible for the subsidy. Then it is the duty of the financial institution to claim the subsidy on your behalf. After clearance, the amount is sent to financial institution, and then it gets credited to your home loan account. After the amount gets credited, your EMIs dip accordingly. It should be noted that the house should be bought in the name of a woman to be eligible for EWS and LIG category. Submission of Aadhar number is mandatory for middle-income group (MIG). Previous beneficiaries of any government housing scheme won’t be entertained.