Articles

The who, what, how of the PM Awas Yojana

by Litty Jose Finance Analyst

At the end of the year in 2016, the Prime Minister of our country announced the Pradhan Mantri Awas Yojana. The PM Awas Yojana or PMAY as it is know is a credit linked subsidy scheme, in which people belonging to certain income groups get an interest subsidy on their home loans. This move was designed to make it possible for more people to own property and homes of their own. 

This scheme is an opportunity for the common man to maximize his savings and own a home of his own. By giving a subsidy on housing loan interest rates, it has been made feasible for more people to own house of their own. If you’re interested in a buying a home, but your income is what is keeping you from getting a home loan and a home, then this scheme is made for you. Read on to know everything important about this scheme. 

1.  Who is eligible for this scheme: As per the PM Awas Yojana, people whose income falls in the bracket of 6 to 18 lakhs per annum are eligible for the subsidy on their home loan rates. People who apply for home loan online as well as those who don’t are eligible for this scheme. People whose home loan got approved on 1st January 2017 and also those whose application was in review are eligible for this scheme.

2.  How much loan and subsidy am I eligible for: The subsidy on your home loan interest rates, depends on which income slab you fall into. If your annual income is Rs.6 lakhs or below, you can avail of a loan of Rs.6 lakhs at an interest of 6.5% for a tenure of 20 years. If your annual income is between Rs.6 lakhs to Rs.12 lakhs, you can avail of a loan of Rs.9 lakhs at an interest of 4% for a tenure of 20 years. If your income is between Rs.12 lakhs and Rs.18 lakhs you can make your home loan application for Rs.12 lakhs at an interest of 3% for a tenure of 20 years.

3.  What documents do I require: Documents required for home loan under this scheme are pretty much the same as anywhere else. The main documents you require are your personal identification documents, i.e. AADHAAR card, birth certificate, and marriage certificate if you’re applying for a joint loan. The other documents you require are proof of employment, salary slips, bank and credit statements dating back at least six months and any other documents that your lender may ask for.



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About Litty Jose Advanced   Finance Analyst

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Joined APSense since, August 2nd, 2016, From Mumbai, India.

Created on Jun 18th 2018 06:31. Viewed 422 times.

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