PMAY, a program introduced by MUDRA under the aegis of the Government of India, is a credit-linked subsidy scheme that aims to provide affordable housing to all. As per reports, 19 lakh houses were built in India between March and September 2020, with an average span of 45-60 days for the construction of each home under this scheme.
If you are eligible to avail subsidies under the scheme, opting for and repaying home loans should become much easier as well. Listed below are the various benefits that one can avail via this scheme Pradhan Mantri Awas Yojana.
- Significant subsidies for all eligible applicants
One of the primary benefits of PMAY is the subsidy it offers to first-time homebuyers. The quantum of subsidy depends on the applicant’s annual income and that of his/her family. The various categories under this scheme include –
- EWS (up to Rs.3 lakh annually) and LIG (up to Rs.5 lakh annually) – These beneficiaries can avail home loans at subsidised rates of 6.5% for a maximum tenure of up to 20 years.
- MIG 1 (between Rs.6 lakh and Rs.12 lakh annually) – These borrowers can look forward to home loan subsidy of up to 4%. The maximum principal and loan tenure is Rs.9 lakh and 20 years, respectively.
- MIG 2 (between Rs.12 lakh and Rs.18 lakh annually) – This group is eligible for subsidies of up to 3%. The loan amount should not exceed Rs.12 lakh in such cases.
Thus, one can obtain the bountiful savings possible for his/her respective group under this specific housing scheme.
- Elderly and differently-abled applicants can avail homes on the ground floor
Applicants under the scheme at an advanced age or those who are differently-abled do not need to seek residence on the upper floors. Under PMAY, all such applicants are provided with affordable housing on the ground floor, ensuring convenient access to these individuals.
- Equated development goals for the rural and urban areas
Under the PM Awas Yojana, housing is not limited to the urban regions of India alone. Instead, a similar development is planned for all rural regions as well. Thus, the rural populace will also benefit from this affordable housing scheme.
The government plans to undertake the construction of 2 crore such properties under this initiative, dividing urban and rural constructions equally.
These are some of the key benefits of the Pradhan Mantri Awas Yojana. Individuals opting for it can sizeably reduce the interest outgo on their home loans with the subsidies provided.
How do you apply for a PMAY subsidy on home loans?
Before you proceed with this application, keep in mind that only first-time homebuyers are eligible for the PMAY scheme. Thus, if you already own a property, do not waste time applying for subsidies under this scheme.
- Offline application process
To submit your Prime Minister Awas Yojana application through the offline process, follow the steps mentioned below –
- Step 1: Obtain an application form from your state’s Common Service Centre or any financial institution listed under this scheme.
- Step 2: Fill up this application form with accurate details.
- Step 3: Attach all the relevant documents, along with your application form.
- Step 4: Pay an application fee of Rs.25 plus GST.
- Step 5: Submit your application form, along with all necessary documents.
If you find the offline procedure burdensome, online application for the housing scheme’s subsidy benefits is also possible.
- Online application process
To complete this application online, complete the steps mentioned below –
- Step 1: Navigate to the official PMAY website.
- Step 2: In the menu bar, select ‘Citizen Assessment’.
- Step 3: Choose ‘Slum Dwellers’ or ‘Benefit Under Other 3 Components’ from the drop-down menu that appears, depending on whichever is applicable for you.
- Step 4: In the next page, provide your Aadhaar number. As soon as you enter your Aadhaar details, you will be redirected to the main application page.
- Step 5: Enter all valid details on this page, including residential address, household income, etc.
- Step 6: Check the box to agree to terms and conditions.
- Step 7: Complete the captcha code verification.
- Step 8: Click on the save option, following which your application is automatically submitted to the portal.
When applying for the housing loan subsidy scheme, one must rely only on reputed financial institutions as they offer quality customer service, along with several other features, on their home loans.
Such HFCs also provide pre-approved offers, thus simplifying and accelerating loan approval process significantly. These offers are available on several financial products, such as home loans, loans against property, and others. One can check his/her pre-approved offer by submitting the name and phone number.Another important thing to check before applying for benefits under this scheme is whether you meet all eligibility criteria. Sizable subsidies on home loans through PMAY can reduce your financial burdens significantly.