The Pradhan Mantri Awas Yojana is a government initiative that offers a wide range of benefits to first-time home buyers. Under the CLSS (Credit Linked Subsidy Scheme), which is an integral part of the PMAY, the government offers financial aid to the aspiring home buyers by providing the subsidy on the home loan interest rate.
To ensure that all home loan applicants from different strata of the society get maximum subsidy benefits, the government has divided the beneficiaries into different groups based on their income. The income groups are:
- EWS – Economically Weaker Section
- LIG – Low Income Group
- MIG-1 – Middle Income Group 1
- MIG-11 – Middle Income Group 2
The Pradhan Mantri Awas Yojana offers a subsidy on the home loan interest rate for the purchase of a new flat, construction of a new home, and extension or improvement of your existing house.
While the PMAY subsidy is beneficial for all, to avail the benefit, you must meet the following specific criteria.
- You or any of your family members must now own a pucca house (permanent residence) anywhere in India.
- If you are a married individual, you can apply for the PMAY subsidy either as an individual or you and your spouse together can apply for it in joint ownership. However, you both will be eligible for a single subsidy.
- Your or any of your family members should not have benefited from any other state or central government affordable housing scheme.
- If you have availed of a home loan under PMAY and received the subsidy but later switch to a new lender will not be eligible for the subsidy again.
- If you apply for the PMAY interest subsidy under the MIG category, you must compulsorily provide details of your Aadhaar number.
- If you belong to the EWS or LIG income group, the annual household income should not be more than Rs. 3 lakhs and Rs. 6 lakhs respectively.
- According to the PMAY mandate, people who apply for the home loan interest subsidy benefits under the MIG income group, the annual income should not exceed Rs. 18 lakhs.
Now that you are aware of the basic criteria to claim the PMAY subsidy, it would help you to know the process for claiming the subsidy benefits.
Once you enrol for the Pradhan Mantri Awas Yojana, you can apply for a home loan with any lender of your choice. However, you must be careful to choose a lender that is authorised to extend the PMAY benefits.
Next, compare the different home loan offers from different lenders and choose the right lender that offers the loan at an affordable interest rate.
Once your home loan application is sanctioned, the lender will disburse the amount in your loan account. The lender will then submit the subsidy claim application on your behalf to the National Housing Bank for data verification and other checks.
The NHB after verifying all the details approves the subsidy for eligible borrowers and disburses the subsidy amount based on their income group.
When the lender receives the amount from the government, they credit the same to your home loan account and your EMIs get revised accordingly. This means before you get the subsidy benefits, you must pay the EMIs as per the standard interest rates.
But after your subsidy is approved, your EMI gets revised, and you get compensated for the additional interest you have paid previously.
The Pradhan Mantri Awas Yojana has benefitted several home buyers in India. It makes home buying more affordable, so if you are looking to purchase a home for a long time, avail the PMAY benefits and make your dream of being a homeowner come true.