Reduce your Home Loan EMI under PMAY Scheme
It’s time to fulfill your dream of either living in an affordable home or buying a home on a Home Loan and availing subsidized or lower rates, and paying lower loan EMIs.
Yes, the Pradhan Mantri Awas Yojana scheme is here to help urban poor sections of the society realize their dreams of owning a dream home. Let’s throw some insights on the Pradhan Mantri Awas Yojana scheme as you read on!
What is Pradhan Mantri Awas Yojana Scheme?
The Pradhan Mantri Awas Yojana scheme is an ambitious ‘housing for all by 2022’ program of the Central Government of India and was launched in 2015.
The Pradhan Mantri Awas Yojana scheme has two modules – Pradhan Mantri Awas Yojana urban for the urban poor and the Pradhan Mantri Awas Yojana for the rural poor.
The mission or the scheme is intended to offer central assistance to implementing agencies through states and Union Territories.
In the same context, the Pradhan Mantri Awas Yojana scheme also offers a Credit- Linked Subsidy Scheme (CLSS) which is a Home Loan plan letting all get home by 2022.
People availing the Credit-Linked Subsidy Scheme (CLSS) are qualified to enjoy interest subsidies either on the purchase or the construction of a home or its renovation.
A Quick Look at Pradhan Mantri Awas Yojana’s CLSS Eligibility
People coming from Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group (MIG) 1 and 2, are eligible
Applicants’ age must be 70 years or less
Women who are citizens of India irrespective of the income group are eligible
Income Groups that are Eligible as per their Income Range
Income group – Economically Weaker Section (EWS) with an annual income of up to Rs.3 lakh
Income group – Low Income Group (LIG) grossing a yearly income between Rs.3.01 lakh to Rs.6 lakh
Income group – Middle Income group (MIG) taking home the annual income between Rs.6.01 lakh to Rs.12 lakh
Income group – Middle Income Group (MIG) with a yearly revenue between Rs.12.01 lakh to Rs.18 lakh
Home Loan Interest and EMIs under the PMAY Scheme
The maximum tenor of the Home Loans under the Pradhan Mantri Awas Yojana scheme is 20 years
Under the scheme, the National Housing Bank is required to pay the entire subsidy in one go to your respective lenders. As a result, you get to lessen your Home Loan EMI burden considerably
If you are availing a Home Loan of Rs.9 lakh, the interest subsidy will be 4% which will reduce the housing loan EMIs by Rs.2062 per month. Also, for availing a Home Loan of Rs.12 lakh, the subsidy stands at 3% and will reduce the Home Loan EMIs by Rs.2019 per month.
How to Apply for a Home Loan under the PMAY
- The borrowers need to imitate the Home Loan demand by putting their request for subsidy with their lenders. The lender will take an undertaking from the user asserting that it is the only home in their name in India. Lenders won’t levy extra processing charges for this facility
- The Home Loan borrower can, then either avail reduced Home Loan EMIs or repay the loan quickly with the currently ongoing EMIs
- To increase the implementation and coverage of the scheme, multiple small finance banks, non-banking finance companies (NBFCs), micro finance institutions are selected as primary lending partners under the scheme
- This scheme helps you bring down your Home Loan EMIs considerably
The Bottom Line
Why wait when you can make the most of the Pradhan Mantri Awas Yojana scheme, lower your Home Loan EMIs, and fulfil your quest for having a dream home! Apply online now, and get going! All the best!