If you think owning a home of your own will take you years, there is help at hand in the form of the Pradhan Mantri Awas Yojana. This scheme aims to provide affordable housing to citizens. So, if you meet the eligibility criteria, consider applying for this home loan under this scheme. It not only gives you an interest subsidy between 3% to 4% if your household income is between Rs.12 lakh and Rs.18 lakh in the middle income segment, but also offers you the freedom to choose between constructing a new home, buying a home, or do additional construction such as adding a toilet or kitchen to your existing home.
When you avail the Home Loan under the Pradhan Mantri Awas Yojana, for example, you can save up to Rs.2.67 lakh on interest by paying a home loan interest rate of just 6.93%. The scheme even benefits you in the long term because your interest subsidy can last up to a tenor of 20 years. Here is everything you need to know about how you can avail this home loan subsidy.
What is the Home Loan Subsidy Scheme?
The Pradhan Mantri Awas Yojana offers a Credit Linked Subsidy Scheme, which allows you to avail a home loan at an interest subsidy between 3% and 6.50%, depending on your income eligibility. The income groups are divided into three broad categories, Middle Income Group, Lower Income Group and Economically Weaker Section. You can avail of this subsidy on a home loan not just to purchase your dream home, but also to construct it or renovate it. This scheme is available to a beneficiary family that can comprise a husband, wife, unmarried sons and/or unmarried daughters. A married couple can either avail the subsidy separately or jointly on a single home subject to the income criteria set by the scheme. In case you are a married couple living with parents, you can still apply for the scheme if the house you live in is in the parent’s name because you will be considered as a separate household.
What are the Different Subsidies the Scheme Offers?
The Pradhan Mantri Awas Yojana divides the Middle Income Group (MIG) into two more categories, MIG I and MIG II. You are eligible under the MIG II category if your household income is between Rs.12 lakh and Rs.18 lakh. In this case, you can avail a loan of up to Rs.12 lakh at an interest subsidy of 3%. The MIG I category includes those households that earn Rs.6 lakh to Rs.12 lakh. Under this, you can get a loan of up to Rs.9 lakh at an interest subsidy of 4%. Those households that fall under the Lower Income Group and Economically Weaker Section can avail of loan of up to Rs.6 lakh at an interest subsidy of 6.50%.
What is the Process to Get this Subsidy?
The process to apply for the Pradhan Mantri Yojana is fairly easy. The main documents you will need to submit include a declaration form, your PAN card, your Aadhaar card and income proof. Before you apply for a housing loan under this scheme, however, check if the lender of your choice has an MoU with the NHB or the HUDCO. You can find the list of lenders on the official website of the Ministry of Housing. Once you have your lender sorted, download the application form available on the official Pradhan Mantri Awas Yojana website, fill it in and submit it to the relevant office nearest to you. You can also apply online.
Once your loan amount is approved and disbursed, the lender, such as Bajaj Finserv, for example, claims the subsidy from the NHB, which will be credited to your loan account. You can then repay the remaining loan amount in EMIs.
The Pradhan Mantri Awas Yojana makes homes loans more affordable than ever. So, what are you waiting for? Start planning to become a homeowner today!