Building the home of your dreams is an expensive undertaking. To ensure that you can create a space for yourself, you can rely on Home Loans to help you out with the finances. And while Home Loans can assist you in buying or building your home, an extra interest subsidy can reduce the weight of repaying the loan liability. Now, with the Pradhan Mantri Awas Yojana (PMAY), you can avail of a Home Loan subsidy easily to repay Home Loans.
However, before you avail for a Home Loan Subsidy, here are a few things to know about PMAY.
What is the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (PMAY-CLSS) that allows you to avail of an interest subsidy when you take up a Home Loan. Essentially, the Pradhan Mantri Awas Yojana Home Loan offers a subsidy designed to assist people in purchasing or designing their first pucca house. Under this scheme, you can obtain a PMAY subsidy of up to Rs 2.67 lakhs towards the principal amount. Since the principal amount gets lowered, you have to pay lower EMIs, as well.
What is covered under the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) applies to all Statutory Towns as per Census 2011. It also includes towns that are notified subsequently along with planning areas as reported with respect to Statutory Town. Thus, if you are buying or constructing your first pucca house in any area mentioned above, you can apply for a PMAY Subsidy.
In addition, for persons belonging to the Economically Weaker Sections/Low-Income Groups, the PMAY Subsidy can also be availed for the new construction, acquisition and addition of rooms, kitchen, toilet etc., to existing dwelling as incremental housing.
What are the PMAY eligibility criteria?
To meet the PMAY eligibility criteria, you must be the following:
A beneficiary family has an annual income of up to ₹ 18 Lakh.
A beneficiary family not owning a pucca house in their or the name of any member of their family in any part of India
A beneficiary family not having availed of central assistance under any housing scheme from the Government of India or any benefit under any scheme in PMAY.
If you are a married couple, either spouse or both in joint ownership will be eligible for a single PMAY Subsidy.
Also, a beneficiary family comprises a husband, wife, and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in the MIG category).
What are the PMAY benefits available to different income groups?
Under the PMAY Scheme, you can avail of a Home Loan Subsidy according to the guidelines for your income group. The different income group slabs and the corresponding PMAY Subsidy limits are as follows:
CLSS EWS/LIG (Economically Weaker Sections/Low Income Groups) Scheme under PMAY:
Your household income should be above ₹3 lakh but below ₹6 lakh.
You are eligible for a maximum interest subsidy of 6.5%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 60 square metres (approximately 645.83 square feet).
The interest subsidy provided to you is limited up to a maximum loan amount of ₹6 lakh.
CLSS MIG 1(Middle Income Group-1) Scheme under PMAY:
Your household income should be above ₹6 lakh but below ₹12 lakh.
You are eligible for a maximum interest subsidy of 4 %, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 160 square metres (approximately 1,722.23 square feet).
This subsidy provided to you is limited to a maximum loan amount of ₹9 lakh over a Home Loan tenure of up to 20 years.
CLSS MIG 2(Middle Income Group-2) Scheme under PMAY:
Your household income should be above ₹12 lakh but below ₹18 lakh.
You are eligible for a maximum interest subsidy of 3%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 200 square metres (approximately 2,152.78 square feet).
This subsidy provided to you is limited to a maximum loan amount of ₹12 lakh over a Home Loan tenure of up to 20 years.
Can you apply for a PMAY subsidy on an HDFC Bank Home Loan?
HDFC Bank offers Home Loans that provide quick disbursal of the loan amount at affordable interest rates. With various repayment options and EMI facilities, you can pay off the loan amount with relative ease. However, to help your buy/construct your first pucca house, HDFC Bank also allows you to benefit from the Pradhan Mantri Awas Yojana (PMAY). You can avail of a PMAY Subsidy on an HDFC Bank Home Loan with utmost ease and convenience.
You can apply for a Pradhan Mantri Awas Yojana Home Loan at HDFC Bank by clicking right here.
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*Terms and conditions apply. Home Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.
