Property prices are ever increasing. So, in order to buy a house in a locality of your preference, you will have to wait until you have saved enough to pay the down payment. Once that’s done, you take a Home Loan to fund your home purchase. However, as a step to make this process more pocket-friendly, the Indian Government is now making ‘housing for all’ a reality. They are doing this by offering Credit-Linked Subsidies on Home Loans taken under the Pradhan Mantri Awas Yojana (PMAY) scheme. This means that you can now buy your own home while saving big bucks on your Home Loan.
Here is the checklist of the things you should consider before applying for the PMAY scheme.
The Pradhan Mantri Awas Yojana scheme lays down a few basic pointers for everyone. In order to avail PMAY benefits you will first have to check these PMAY eligibility parameters. You are eligible only if:
● You or your family members do not own a pucca house in your name anywhere in the entire country.
● Your family should not have availed any assistance from the government under any other housing scheme.
● You will be considered a beneficiary if you are unmarried or are representing a family unit, which consists of you, your spouse, your parents, and unmarried children.
Once you qualify on these basic conditions, you will then have to apply for PMAY based on your income. As per the terms and conditions of the Pradhan Mantri Awas Yojana eligibility, you will have to use your household income to decide the sub-scheme under which you can avail the PMAY benefits.
● Under Economically Weaker Section category (EWS) with an annual household income of up to Rs.3 lakh
● Under Lower Income Group category (LIG) with an annual household income of Rs.3-6 lakh
● Under Middle Income Group I category (MIG 1) with an annual household income of Rs.6-12 lakh
● Under Middle Income Group II category (MIG II) with an annual household income of Rs.12-18 lakh
Apart from checking the PMAY eligibility parameters, it is also important to check the financial benefits that you will get once you qualify for PMAY. So, as a first-time homebuyer you do not have to worry too much about the Home Loan interest rates. This is because under the interest subsidy scheme for PMAY, your total interest paid on your Home Loan is reduced. Here, the percentage of subsidy depends on your eligibility.
● For EWS/LIG, interest subsidy is available at 6.5% for a maximum Rs.6 lakh Home Loan.
● For MIG-I, you can avail interest subsidy at 4% for a Home Loan of up to Rs.9 lakh.
● For MIG-II, you can avail subsidy of 3% for a Home Loan of up to Rs.12 lakh.
Remember two things here. Firstly, in case your Home Loan amount exceeds the maximum cut-off, you will not receive any subsidy on the exceeding amount. Secondly, the subsidy is applicable on your Home Loan for a tenor of 20 years. So, even if your loan tenor exceeds then you will not get a subsidy beyond 20 years.
Once you meet the Pradhan Mantri Awas Yojana eligibility parameters, apply for PMAY in a click at the pmaymis.gov.in website. Then it’s time for you to avail a nominal-interest Home Loan with lenders like Bajaj Finserv to access up to Rs.3.5 crore without a delay and make the most of your eligibility.