Home Loan PMAY Eligibility and PMAY Subsidy Calculator


Home Loan PMAY Eligibility and PMAY Subsidy Calculator

What is PMAY?

The Central Government started Pradhan Mantri Awas Yojana (PMAY) in 2015 as part of the ‘Housing for All’ goal, which aims to offer shelter to the homeless in both urban and rural areas across the country. Under this flagship project, the government aims to build over six crore homes across the country by 2022. The government has implemented many funding methods under the PMAY scheme (Urban) to ensure that the specified beneficiaries receive the greatest benefit. For homebuyers interested in accepting a loan under PMAY home loan, the Credit Linked Subsidy Scheme (CLSS) is the most beneficial among all other financial supports (Urban). The CLSS benefit is divided into categories based on carpet area and household income. A home buyer can avail home loan for the following purposes:

● Construction of a house

● Acquisition of a house

● Repair of a house

● Extension of a house

The beneficiaries who can avail the benefit of this loan after meeting PMAY eligibility are divided into four categories on the basis of their income, these are as follows:

● Economically Weaker Section (EWS)

● Low Income Group (LIG)

● Middle Income Group-I (MIG I)

● Middle Income Group-II (MIG II)

What is PMAY Eligibility?

An applicant will only be able to get a loan under the PMAY scheme if they fulfil the following PMAY eligibility criteria:

● Husband, wife, and unmarried sons or daughters should make up a beneficiary household

● Married couples can apply for a subsidy whether they own the property individually or jointly; both alternatives will receive the same amount of money.

● The beneficiary must be a first-time homebuyer.

● The beneficiary or their family must not have received central aid through the PMAY or any other government housing scheme.

● There should be no pucca houses in the beneficiary’s name or the name of any family member.

In the PMAY list, the loan aspirant can qualify for a category only if the applicant’s or their cumulative household income every year stands within a specified amount. Here’s what makes the loan aspirant eligible under PMAY eligibility.

● The applicant is eligible for the EWS segment provided their annual household income stands below Rs 3 lakh.

● The applicant can qualify under the LIG segment provided their annual household income is Rs. 3-6 lakh.

● The applicant can qualify for the MIG 1 segment provided their annual household income is Rs. 6-12 lakh.

● The applicant can qualify for the MIG 2 segment provided their annual household income is Rs. 12-18 lakh.

Benefits of CLSS scheme

● Loan recipients receive the subsidised amount from the Government directly in their loan account. This brings down their outstanding principal amount, thus, reducing the EMIs.

● As EMIs become more manageable, it becomes easier to repay the housing loan. Alternatively, if the loanee chooses to pay the actual EMIs, the loan tenor shortens. As a loan recipient, the receiver can select a suitable option as per their requirements.

● Applicants claiming this interest subsidy can also avail of tax benefits on the home loan.

What is the PMAY subsidy calculator?

The PMAY calculator is a general planning tool for self-help. Many factors influence the outcome, including the information provided by the applicant. It should be emphasised that the PMAY calculator was designed to provide a rough idea to the loan recipient and should not be taken as absolute. This calculator helps the applicant in knowing what they will get in the form of a subsidy for getting a loan under PMAY.

There are various housing finance companies that provide the facility of PMAY home loans. The subsidy that a person gets under PMAY is close to 6.5% per annum. These loans are easy to apply for and get approved in a very short span of time. Therefore, a first-time homebuyer should consider PMAY as a suitable option for fulfilling the dream of getting their first home.

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