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PMAY
Pradhan Mantri Awas Yojana (PMAY) is a housing scheme launched in 2015 by the Central Government of India, which proposes “Housing for All” through the Credit Linked Subsidy Scheme (CLSS). This housing scheme aims to provide subsidies on home loans to all eligible Indians without a pucca house in their name.
The PMAY subsidy scheme offers credit to first-time homeowners to build or purchase homes with basic amenities, such as water, electricity, drainage system, and others. PMAY loan applicants should use the PMAY eligibility calculator before availing of a loan to have an idea and assessment of their repayment capacity of the loan amount.
PMAY Scheme
There are two types of PMAY schemes applicable to the home loan borrowers as per the region the applicants belong to PMAY-Urban and PMAY-Gramin.
PMAY-G
PMAY-G was rechristened from the housing scheme Indira Awas Yojana in 2016. It aims to provide housing facilities to all eligible Indians in rural areas across India (except Delhi and Chandigarh).
PMAY-U
Also aims to provide housing facilities to all eligible citizens residing in urban areas. Over 4000 towns across India are enlisted UNDER this project. The scheme aims to provide housing facilities in three different phases.
The first phase began in April 2015 and ended in March 2017. Within this period, the scheme covered affordable housing in 100 cities. In the second phase, it covered around 200 cities by March 2019. The housing facilities for the remaining cities will cover in Phase 3, which aims to end by March 2022.
PMAY Eligibility Criteria
Possessing an Aadhaar card is mandatory for the applicants who wish to claim the PMAY subsidy benefits. Other than this, the applicant should be above 21 years of age with a stable income. The PMAY eligibility is determined by the household income of the applicant and categorized as:
- Economically Weaker Section (EWS)
- Lower Income Group (LIG)
- Middle Income Group (MIG).
The household income should be up to Rs.3 lakh, Rs.3-6 lakh, Rs.6-12 lakh, and Rs 12-18 lakh per annum for EWS, LIG, MIG(I), and MIG(II) categories, respectively. Furthermore, the government uses the Socio-Economic and Caste Census of 2011 to list out and identify the beneficiaries of PMAY for the Lower Economic Group.
It should note that for EWS and LIG, applicants must have a woman as a co-owner to be eligible for PMAY subsidy. However, this rule is not obligatory for MIGs and purchasing an existing property across all categories.
PMAY Eligibility benefits
You can be eligible for PMAY benefits when you avail of a home loan through any registered lenders, such as Bajaj Housing Finance if you belong to the EWS, LIG, or MIG categories.
Note that the regulatory authority has not extended the validity of MIG I and II categories. If the beneficiary belongs to any of the income brackets (EWS, LIG, or MIG), s/he can claim for the benefits of PMAY subsidy while applying for a home loan.
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If your household earning is up to Rs.3 lakh per annum, then you will qualify for the EWS category; where you can claim an interest subsidy of up to 6.5%, amounting to Rs 2.67 lakh for a maximum loan amount of Rs.6 lakh.
Similarly, to claim the subsidy benefits for LIG category. The household income should lie in the bracket of Rs3 to Rs6 lakh per annum, where the interest subsidy is 6.5%. Suppose you belong to the Middle Income Group.
In that case, you can be eligible for 4% and 3% interest subsidies across the two categories MIG(I); where the household income lies in the bracket Rs.6 to Rs.12 lakh. Also, MIG(II), where the household income lies in the bracket Rs.12 to Rs.18 lakh.
The subsidy provided over the loan amount for MIG(I) and MIG(II) cannot exceed Rs.2.35 lakh and Rs.2.30 lakh, respectively.
Conclusion:
If you plan to avail of a home loan from Bajaj Housing Finance. You can reap the benefits of PMAY subsidy on the fixed amount of loan according to your applicability provided. You are eligible and qualify for the same. For example, if your annual income is Rs.5 lakh per annum and you wish to apply for a home loan of Rs.15 lakh.
According to the PMAY scheme; you will be eligible to claim the benefits under the LIG category; if you opt for a home loan of Rs.15 lakh from Bajaj Housing Finance.
The Rs.6 lakh loan amount will be subsidized at a 6.5% interest rate (around Rs.2.67 lakh). While the remaining Rs.9 lakh will be paid according to the regular interest rate applicable on your loan.
