Housing for all—that is the aim of the government’s Pradhan Mantri Awas Yojana. It gives first-time homebuyers a better chance of buying that dream home. How? By offering Home Loans of up to Rs.12 lakh at subsidized interest rates. For example, if you avail of Bajaj Finserv’s Home Loan under the Pradhan Mantri Awas Yojana, you could save you up to Rs.2.67 lakh on interest. To make the deal sweeter, the government has also slashed the GST on a Home Loan through this scheme from 12% to 8%. But, there is a strict eligibility criterion for this scheme that applicants must meet. Read on to find out if you are eligible to apply for this scheme.
What is the Pradhan Mantri Awas Yojana?
Introduced in 2015, the Pradhan Mantri Awas Yojana, which was originally called Housing For All, aims to do just that. The scheme’s main purpose is to provide a roof over the heads of 20 million of the urban poor and recently extended its benefits to include India’s burgeoning middle class. It provides interest subsidies of 3% to 6.5% on Home Loans ranging between Rs.6 lakh and Rs.12 lakh. So, for those from the Economically Weaker Section (EWS) and the Light Income Group (LIG), who wish to take up a loan of up to Rs.6 lakh, the scheme provides an interest subsidy of 6.5%. Those in the Middle Income Group (MIG) category can avail of a Home Loan of up to Rs.12 lakh at an interest subsidy of 3%.
What are the eligibility criteria for the scheme?
The scheme divides the economic groups into four broad sections: EWS, LIG, MIG1, and MIG2. Each group has different eligibility criteria.
EWS: Applicants with an annual household income of Rs.3 lakh or less will come under this category. They can avail a Home Loan of up to Rs.6 lakh at an interest subsidy of 6.5%.
LIG: Applicants with an annual household income between Rs.3 lakh and Rs.6 lakh will fall under this category. They can also avail a Home Loan of up to Rs.6 lakh at an interest subsidy of 6.5%.
MIG1: Individuals with an annual household income below Rs.12 lakh fall under this category. They can avail a Home Loan of up to Rs9 lakh at an interest subsidy of 4%.
MIG2: Those with an annual household income between Rs.12 lakh and Rs.18 lakh can apply for a Home Loan of up to Rs.12 lakh under this category at an interest subsidy of 3%.
There are other common PMAY eligibility criteria that apply to all the economic groups that must be met in order to avail of a Home Loan under this scheme. These include:
1) The applicant or any of the beneficiary family members should not have a house in their name anywhere in the country.
2) If a married couple is applying, they are entitled to a Home Loan for a single house, provided their household income meets the required criteria.
3) The scheme cannot be applied to an existing or old Home Loan. A fresh loan has to be taken to enjoy its benefits.
If you meet the PMAY eligibility criteria, apply for Home Loan under the scheme today!