PMAY – The best way to buy your own home
by Litty Jose Finance AnalystOwning a home of your own is a
goal for most of us. But with real estate prices being sky high, not many of us
can actually afford to purchase our dream homes. But with PMAY or Pradhan
Mantri Awas Yojana you can finally fulfil your lifelong dream of owning a home
of your own.
PMAY is an interest subsidy
scheme that has been named as 'Credit Linked Subsidy Scheme for Middle Income
Groups - CLSS (MIG)'. As per this new subsidy, middle-income groups with
incomes in the eligible range will get a subsidy on their interest rate of
three to four percent. This scheme has been devised to ensure that more and
more people can avail of housing loans and purchase their own homes.
Here’s what you need to know
about this clss scheme and eligibility.
1. People whose incomes fall in the range of 6 lacs
to 18 lacs are eligible for this subsidy under the CLSS.
2.
People whose housing loans were approved and those
whose home loan application was in review since 1st January 2017 are
eligible for this subsidy.
3. Peoples who have an annual income of 12 lacs are eligible for a subsidy of four percent on their home loan of up to 9 lacs. People who have an annual income of 18 lacs are eligible for a subsidy of three percent on a home loan of 12 lacs.
Here are the income slabs for the CLSS eligibility under the Pradhan Mantri Awas Yojana.
1. People with an annual income of Rs.6 lacs and
below can avail of loan of Rs.6 lacs at an interest of 6.5% for tenure of 20
years.
2. People with an annual income of Rs.12 lacs and
below can avail of loan of Rs.9 lacs at an interest of 4% for tenure of 20
years.
3. People with an annual income of Rs.18lacs and
below can avail of loan of Rs.12 lacs at an interest of 3% for tenure of 20
years.
Here’s how this scheme will
affect home loan
interest rates.
1. The interest subsidy of four per cent under CLSS (MIG)
will bring down EMIs of borrowers by Rs. 2,062 per month and Rs 2,019 per month
on a housing loan of Rs 9 lakh and Rs. 12 lakh respectively.
2. The total interest subsidy accrued on these loan
amounts will be paid to the borrowers up front in one go. This in turn will
reduce the burden of EMI on the user.
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Created on Dec 26th 2017 02:01. Viewed 724 times.