What is Pradhan Mantri Awas Yojana Scheme-PMAY
The government of India has announced “Housing for All” Mission in June 2015 with an estimated target of constructing 2 crore houses by 2022 and to provide central assistance to own a house.
An interest subsidy scheme for purchase/construction/extension/improvement of the house to the Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Group (MIG).
How interest subsidy benefit will be given?
The interest subsidy benefit will be upfront on the principal home loan outstanding amount. This means the subsidy amount is credited to the loan account directly at the beginning of the loan. This reduces the outstanding principal amount of the loan, the home loan borrower can lower the EMI amount or repay the loan faster with normal EMI amount.
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Eligibility Criteria for PMAY [emaillocker][/emaillocker]
- Any family who is does not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
- The complete family will be eligible for a single subsidy. The family will comprise of husband, wife and unmarried children.
There is no limit on the home loan amount or the cost of the house.
- This is not applicable for those who already own a house and want to do any modification or reconstruction.
- The beneficiary family should not have availed of central assistance under any housing scheme from the Government of India or any benefit under any scheme in PMAY.
- It will be applicable for any type of major renovation of the house to change from a kutcha to a pucca house.
Location of House must be in Town
All statutory towns as per Census 2011 and notified subsequently, including planning areas are covered around 4000+ towns.
Which Bank is offering Loans under PMAY?
Almost all Govt and Private banks including NBFCs are offering loan under PMAY.
What is the procedure for availing interest Subsidy on home loan under PMAY?
The eligible candidates have to apply through their Banker for getting subsidy benefit under PMAY. All applications will be examined and reviewed by the lending agency for meeting the required conditions, the same will be accepted only when the applicant meets the required conditions of the scheme.
In Union Budget 2018 Mr. Arun Jaitley said “Every Poor Person to have a House by 2022” Going forward this is a great step by Govt. of India
If you meet all the conditions applicable for the scheme, you must definitely avail interest subsidy on home loan under PMAY, which will reduce your EMI burden. You can get up to Rs. 2.65 Lacs interest benefit.