PMAY – Make your home dreams come true

by Litty Jose Finance Analyst

If you’re looking to invest in your own home in this new financial year here’s something you must absolutely know about, PMAY. The Pradhan Mantri Awas Yojana is designed to help people all over the country buy homes of their own.

So what is PMAY? The Pradhan Mantri Awas Yojana is a 'Credit Linked Subsidy Scheme for Middle Income Groups - CLSS(MIG)', which means it’s an interest subsidy that will help more people afford home loans. This new subsidy is targeted towards middle-income groups. People whose incomes fall in the eligible range will get a subsidy on their home loan interest rates of three to four percent. This clss scheme is devised to ensure that more people can afford to take housing loans and fulfil their dreams of owning their own property.

Income slabs have been devised to bifurcate income groups so they can avail of this clss scheme. Here’s are details of who is eligible for this subsidy under this scheme.

1. People with income ranging from 6 lacs to 18 lacs are eligible for this subsidy under the PMAY.

2. This subsidy can be availed by people whose housing loans were approved after 1^st January 2017.

3. People with an annual income of 12 lacs are eligible for a subsidy and can get four percent off their home loan of up to 9 lacs. People with an annual income of 18 lacs can get three percent off of a home loan of 12 lacs.

If you’re interested in availing this clss scheme, here are the details of the income slabs so you can check what percentage of the subsidy you’re eligible for.

1. A person whose annual income is Rs.6 lacs and below can avail of loan of Rs.6 lacs at an interest of 6.5% for a tenure of 20 years.

2. A person whose annual income is Rs.12 lacs and below can avail of loan of Rs.9 lacs at an interest of 4% for a tenure of 20 years.

3. A person whose annual income is Rs.18lacs and below can avail of loan of Rs.12 lacs at an interest of 3% for a tenure of 20 years.

The Pradhan Mantri Awas Yojana has been designed to help the masses buy their own property. This clss scheme has made it possible for a lot of the working middle class people to finally fulfil their dream of buying their own property.