Why Pradhan Mantri Awas Yojana is Being So Popular?

by Alisha Antil Financial Blogger

Are you all set to buy your first home using a home loan? Congratulations! Why don’t you check your credit linked subsidy scheme eligibility under the Pradhan Mantri Awas Yojana?

Yes, many people only dream of having an own home but unable to fulfil their wish due to financial constraints. People who even avail a home loan find it tough to adjust their monthly finances as a home loan affects their income for a longer duration.

However, with the facility of the home loan credit linked subsidy scheme under the PMAY plan helping you earn subsidy on home loans, you can grab an own home.

Yes, when you repay a conventional home loan, the home loan EMIs comprise of the principal amount along with the home loan interest rates. The combination of such factors makes a home loan repayment costly. Thus, when you opt for the credit linked subsidy scheme under the PMAY plan, you get to save up to 6.5% on the interest rate.

How do You Buy a Home Under the Pradhan Mantri Awas Yojana?

The Pradhan Mantri Awas Yojana was initiated in 2015 to build around 2 crore affordable houses made with eco-friendly materials for the urban populace of India.

People who don’t want to avail this housing scheme and get home under the plan can also opt for the credit linked subsidy scheme. Under the credit linked subsidy scheme, they can apply for a home loan from a lender and buy a home. They also get to enjoy saving thousands to lakhs of rupees as they get interest subsidy on the availed home loan under the CLSS scheme.

People are categorized in the Economically weaker section (EWS), Lower income group (LIG), Middle-income groups I (MIG I) and Middle-income groups II (MIG II). As per their groups, they get home loan interest rate subsidy starting from 3% to 6.5%.

What’s the Eligibility Criteria of the Credit Linked Subsidy Scheme Under PMAY?

The credit linked subsidy scheme under the PMAY have some eligibility criteria which you will need to fulfil if you want to make the most of it such as:

You need not have a pucca home in your name or in the name of any of the family members in any part of the country
The family, in this case, means the husband, wife and unmarried children like sons and daughters
If you are taking home up to Rs.3 lakh per year, you are kept in the EWS section and people carrying home between Rs.3 lakh and Rs.6 lakh under LIG.
The MIG – I section is for people earning between Rs.6 lakh and Rs.12 lakh
The MIG – II section is for people earning between Rs.12 lakh and Rs.18 lakh
The scheme gives priority to women as women homebuyers will be given quick consideration for home loan subsidy request compared to others
Disabled and senior citizens are also offered priorities over other while processing their home loan interest subsidy application

The Bottom Line

With the Government even helping you to save thousands to lakhs of rupees under the credit linked subsidy scheme under the PMAY, why wait and let your dream home wait? Check your eligibility for PMAY scheme as per your income and apply for it online. Good luck!