A Guide for Home Loan Subsidy Under PMAY

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Home Loan Subsidy by the government is the Pradhan Mantri Awas Yojana which includes a Housing for All scheme with the aim that every Indian household should have a permanent house by 2022. Under the scheme, home loan interest subsidies can be availed by individuals if they meet the necessary criteria. The people who are eligible for this are the middle-class income earner category and will comprise households that have an annual income between Rs 12,00,001 up to Rs 18,00,000. So, anyone earning between Rs 6 lakh and Rs 18 lakh per annum can avail of the benefits of subsidized loans provided other conditions are also satisfied.

To get a home loan subsidy, one must opt for the most prominent verticals of the PMAY Yojana that is the Credit Linked Subsidy Scheme. This scheme would benefit EWS / LIG households earning up to Rs 6 lakh per annum who are first-time home buyers. The PMAY scheme for the middle-income group has also been launched with certain guidelines. Now the Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme introduced by the Central Government. Under this scheme, they will be provided with a home loan interest subsidy on the purchase, construction, extension, improvement of their home. 

The people who are eligible for this scheme are: Any household with an annual income between Rs 3 lakh to 18 lakhs. The applicant or any other family member must have a permanent house in any part of the country. The beneficiary cannot avail of PMAY benefits on the already built house. Benefits of the PMAY scheme are: PMAY promises equal housing opportunities for all, Grant’s subsidies of up to 6.5% on home loan interest rates, promotes mandatory homeownership for women, Facilitates the use of eco-friendly construction materials. 

If you are applying for the PMAY scheme online for the first time, then you need to follow these steps:

  1. Visit the PMAY official website 
  2. Enter your Aadhaar or Virtual ID and Name as per Aadhaar
  3. You will be redirected to a new page where you will have to fill the PMAY application form online.

Applications for the PMAY scheme can be made online, with the last date for the Economically Weaker Section and Low-Income Group being 31 March 2022. Families that fall under the Middle-Income Group have up to 31 March 2021 to apply for the interest subsidy scheme on the home loan.

If you are eligible for a PMAY subsidy benefit and have not availed the same while taking Home Loan from us, you can submit your request. The bank will review your request for a subsidy claim and submit the claim to National Housing Bank. You have to follow the below process:

  • Download the Self Declaration form
  • Submit the duly filled Self Declaration Form at the nearest Bank
  • Please carry your original ID proof. 
  • Aadhaar is mandatory to avail subsidy, hence carry original Aadhaar card of all family members.

Every applicant under PMAY must fall under the following income slabs to be qualified for a home loan subsidy.

  1. EWS – up to Rs 3 lakhs.
  2. LIG – between Rs 3 lakhs and Rs 6 lakhs.
  3. MIG-I – between Rs 6 lakhs and Rs 12 lakhs.
  4. MIG-II – between Rs 12 lakhs and Rs 18 lakhs.

To get maximum subsidy to benefit, a customer has to be eligible for the maximum subsidy if the disbursed amount is equal to or more than Rs. 6 lakhs in EWS/LIG category, 9 lakhs in the MIG 1 category, 12 lakhs in the MIG 2 category and loan tenure are of 20 years. In case loan disbursement or tenure is below the above-mentioned limits, the subsidy would be reduced proportionately. Home loans or housing loans are available for the purchase of under-construction or ready-to-move homes.

The following individuals are also eligible under our Griha Suvidha Home Loan:

  1. Employees drawing part of salary in cash
  2. Salaried employees seeking home loan term beyond retirement

Various banks, including the Bank of Baroda, extend the affordable housing benefits of any household that includes a married couple and unmarried children can apply for PMAY benefits. Any earning adult member of the family who is unmarried is considered as a separate household. Female ownership or co-ownership is mandatory for EWS and LIG categories. Also, under CLSS, interest subsidies are available on housing loans for beneficiaries of specific categories defined by the scheme. If you are looking to benefit from PMAY for an existing home loan, you are not qualified for the PMAY scheme. The most vital criteria to get a PMAY subsidy is that the applicant must not own any permanent house in their name across India. This is why PMAY on an existing home loan is not a possibility.

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