According to a report, the Indian Government, under its PMAY-U scheme, has allowed the construction of 56,368 houses. The PM Awas Yojana came into existence in June 2015 with the notion to provide ‘housing for all by 2022’. This Pradhan Mantri Awas Yojana subsidy is designed to support the dream of owning a residence, especially for individuals from an economically challenged section of society. Under this scheme, applicants receive an affordable interest rate against the funding to build a residence or purchase one.
Eligibility criteria apply for the PMAY scheme
To enroll in the Pradhan Mantri Awas Yojana for the home loan scheme, one must fulfil these parameters.
- The age limit of an applicant must be between 18 and 70 years.
- Applicants with an income structure of Rs.6 lakh would fall into the EWS category. The MIG-I income group consists of applicants with an income ranging between Rs.6 lakh and Rs.12 lakh, and MIG-II comprises individuals with an income ranging from Rs.12 lakh to Rs.18 lakh.
- A beneficiary must not have received benefits from other central housing schemes in the past.
- He/she must not own a Pucca house or a beneficiary of state or central government financial backing under Pradhan Mantri Awas Yojana subsidy.
- Only individuals under LIG and EWS category can apply for home improvement or renovation loan.
However, a Kisan Credit Card beneficiary having a spending limit of Rs. 50,000 or above, and paying income tax and landline connection is excluded from the PMAY-G list.
For instance, if an applicant fails to fulfil the PMAY eligibility criteria mentioned above, they can avail a home loan from HFCs instead. This credit form provides substantial funding against simple eligibility and easy documentation.
Moreover, borrowers must look for an HFC which provides pre-approved offers to streamline the loan application process. These offers are levied on financial products like loan against property, home loans, etc. Check your pre-approved offers by entering details like name and contact number.
What are the advantages of Pradhan Mantri Awas Yojana?
One of the significant benefits of this Pradhan Mantri Awas Yojana subsidy is the reduced interest burden on a home loan. The amount is incurred on the outstanding credit form and credited directly to the recurring loan account. In this regard, using a Pradhan Mantri Awas Yojana subsidy calculator helps in determining the subsidy and interest rate.
This tool helps a borrower to plan efficient savings by understanding the repayment amount after eliminating the subsidy.
For instance, an individual with a loan amount of Rs.6 lakh, an interest rate of 9%, a tenor of 20 years and an EMI of Rs.5,398 will have a total interest cost of Rs.6.95 lakh on this said credit.
When applying a 6.5% subsidy, interest value comes down by Rs.2.67 lakh. Thus, the reduced interest burden and EMI outage are the key benefits of Pradhan Mantri Awas Yojana PMAY.
How to check the PMAY list?
The central government releases the names of beneficiaries in the PMAY list each year. Here’s how to check beneficiary names.
- Log in to the official PMAY site and select the respective category, i.e. Gramin or Urban.
- Individuals have to fill in the details like Aadhaar or reference number.
- Redirect to the next page and select the submit option.
Following these steps will help a Pradhan Mantri Awas Yojana subsidy candidate to access his/her application status. Before applying to this beneficial scheme, applicants must understand the parameters and registration process to streamline the process.