PMAY: Pradhan Mantri Awas Yojana (Subsidies for low-budget housing)

PMAY:PradhanMantriAwasYojana (Subsidies for low-budget housing)

 This is a benefit that can be availed by certain buy buyers. One kind that can apply are the people who are living as an Individual Or Another case would be that of a representative of a family who have their Parents, Spouse and unmarried children. Although, there are other factors to be considered under this scheme to be eligible! I’ll be focusing on segments of earnings between 6Lacs and 18 Lac. 

So, for the folks in-between 6 Lacs and 12 Lacs have something they can apply for called the MIG-I application and as for the people whose earnings are not exceeding 18 Lacs They are eligible for applying the MIG-II application. 

  Speaking about the maximum claim you can enjoy with this scheme is precisely about 2.67 Lacs. But again it gets categorized on the basis of what application you are eligible for. There is a different percentage for different applications. And what applications you can apply for depend upon the applicant’s earnings.   

  Another catch to  this scheme is that you have to opt for the tenure that is for a period of 20 years. There are 13 states that can apply for this subsidy. The bigger picture of the Government is to expand this scheme for all the citizens in India.

There are a large variety  of benefits individuals are given the option to avail. The list goes on as down below..

1. Loan Amount: Those looking to avail a loan within the EWS and LIG, can avail a Home Loan of up toRs. 25 lacs including insurance. Those within MIG can avail a home loan up to Rs.140 lacs including insurance (minimum loan amount of Rs. 50,000 excluding insurance).

2. Tenure & Term: Home Loans can range from 1 up to 30 years in its tenure. The term, however, does not extend beyond the retirement age or 60 years, whichever is earlier (70 years for self-employed individuals).

3. Purpose: Credit Linked Subsidy will be available for housing loans availed for new/ resale purchase of home, construction loan for all segments and additionally for EWS/ LIG, extension/improvement of rooms to existing dwelling can be done.

4. Interest Subsidy: For EWS and LIG, the credit linked subsidy will be available only for loan amounting up to Rs. 6 lacs which would be eligible for an interest subsidy at the rate of 6.50% p.a. (Approx.Rs. 2.67 lacs), for tenure of 20 years or during the tenure of loan whichever is lower, to the eligible customers under the scheme. *

For MIG 1 customers, subsidy will be applicable for loan amounts up to ` 9 lacs and such loans would be eligible for an interest subsidy at the rate of 4% p.a. for a tenure of 20 years. For MIG 2 customers, subsidy will be available for loan amounts up to ` 12 lacs and such loans would be eligible for an interest subsidy at the rate of 3% p.a. for a tenure of 20 years.

5. Processing Fees: Processing Fees on loan amount as per maximum subsidy applicable (as per customer applicability) to be refunded once claim is received from NHB.

6. Easy Repayments: There are 2 options for repayment of the loan based on the EMIs payable.

a.) Through ECS (Electronic Clearing Service) based on standing instructions to your bank.

b.) Post Dated Cheques (PDCs) drawn on your Savings/Salary account.

7. Home Loan Tax Benefits: Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is Rs. 2,00,000/- for the interest amount paid in the financial year and up to Rs. 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.

8. Applicant and Co-Applicant: Home Loans can be applied for by an individual. The loan amount can be enhanced by including an earning co-applicant. Female property ownership is mandatory for EWS/ LIG category but not mandatory for MIG category.

There are also problems faced by the initiative. Them being.. In July, the Prime Minister's Office called a meeting to review the housing scheme. During the meeting, officials pointed out that lack of funds with the NHB was a major concern.

However, when asked for a response, ministry officials denied any shortage of funds and said the subsidies are being cleared in a timely manner through the extra budgetary resource (EBR) allocation of Rs 60,000 crore.

In the current financial year, the budgetary allocation for the housing scheme is Rs 7,000 crore, which has been completely utilised.

Sources however confirmed to India Today TV that Rs 28,000 crore has been withdrawn from the EBR to disburse subsidies. While this has been done, the demand for CLSS has risen by almost 285 per cent in comparison 2017-18. Reluctance of banks and NBFCs to supply funds for subsidies is evident from the fact that in July this year, the EBR required for the Housing and Urban Development Corporation (HUDCO) wasn't approved by the department of economic affairs. The source for this information being India Today. 

Applicant’s family comprises husband, wife, unmarried sons and/or unmarried daughters.

**For the NPV calculation the time period under consideration is 20 years or actual tenor of the loan, whichever is lower. The savings highlighted in this booklet are based on the current rules set by Govt. of India, which may change as per the directive of the Government. Please get in touch with our bankers at the site for additional details on eligibility and application process.

This document is informational only and is based on data as available on the date of printing. OSS HOMES Group does not bear any responsibility for the accuracy of the information in the document. Folks are requested to check their eligibility and other details of the scheme with their bankers.