Steps To Avail Of Home Loan Subsidy Under PMAY Explained!

As soon as Narendra Modi came into power as the Indian Prime Minister, he launched a slew of social security schemes. One such popular scheme was the Pradhan Mantri Awas Yojana. This Credit-Linked Subsidy Scheme was launched catering to the following people –

• Economically Weaker Section
• Low Income Group
• Middle-Income Group 1 (MIG 1)
• Middle-Income Group 2 (MIG 2)

The PMAY scheme provides subsidised home loan interest rates depending on your household income. You can avail of this benefit not only for the purchase of a home, but also on construction, extension, and improvement of existing kaccha or semi-pucca houses. You must be first eligible for the scheme for availing the same.

Essential eligibility criteria for PMAY are –

• The scheme caters to beneficiaries who families comprise of husband, wife, and unmarried children.
• The beneficiary must not own a pucca house in the name of any family member across India.
• If you are a married couple, either of the spouse or both together in joint ownership are eligible for a single subsidy.
• The beneficiary’s family must not have benefitted any Government housing scheme, including PMAY.
• Home loan applicants, who switched to another lender due to balance transfer, are not eligible for the scheme.
• The beneficiary family who falls under MIG must mandatorily furnish Aadhaar to reap the benefits of the program.

Eligibility parameters for each segment:

• Economical Weaker Section: They are divided into three categories, namely –
  
  
• Eligible Family Income: The annual household salary, according to the income category is up to INR 3 lakh for EWS and between INR 3 lakh to INR 6 lakh for LIG.
  
  
• Women Ownership: This is mandatory. The house, whether new or existing, should be in the name of an adult female member of the family. The condition, however, is not compulsory in case of house construction or enhancement.
  
  
• Carpet area: The maximum carpet area is up to 30 sq. mts. and up to 60 sq. mts, for EWS and LIG section respectively. 
  
  

• Middle Income Group (1 & 2): The eligibility conditions for them are –
  
  
• The annual household income is between INR 6 lakh to INR 12 lakh and INR 12 lakh to INR 18 lakh for MIG 1 and MIG 2 respectively.
  
  
• Women ownership is not compulsory.
  
  
• The carpet area of the house under this category is 160 sq. mts. and 200 sq. mts. each.

The process to claim subsidy:

The home loan subsidy routed through two central nodal agencies – Housing & Urban Development Corporation (HUDCO) and NHB. These agencies channelise the subsidy to pre-listed financial institutes, which further helps the beneficiaries for availing the interest subsidies on PM Awas Yojana.

The process is as follows –

• Once the loan gets disbursed, the lender sends details to the National Housing Bank for validation of data and other verifications.
• NHB then approves of the subsidy to eligible borrowers.
• The subsidy amount gets disbursed to the lender for eligible borrowers.

Upon receiving the amount from NHB, the lenders credit the same to the respective borrowers and adjust it in the loan accordingly.

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Created on Oct 16th 2019 00:16. Viewed 345 times.

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