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How to avail subsidy on home loan under PM Awas Yojana?

PM Housing Scheme Urban

Under the Pradhan Mantri Awas Yojana (Urban), credit linked subsidy scheme (interest subsidy) to the weaker income group (EWS) and lower income group (LIG) can be availed. People from weaker income group can avail Rs 2.60 lakh on the interest of home loan.



In which category?

People whose income is less than three lakh rupees per annum fall in the EWS category. People earning up to six lakh rupees annually come to LIG. In both these categories, up to 6.5 percent interest subsidy can be availed on loans up to six lakh rupees under PMAY.

Also Read: PMAY: Pradhan Mantri Awas Yojana Apply, check this status

Benefit of PM accommodation

The CLSS was launched under the Modi government’s ambitious plan for everyone, home-2222. Later it was increased to six lakh to 12 lakh rupees annually and even people with income ranging from 12 to 18 lakh rupees annually.

How much loan in which category

Those earning up to Rs 12 lakh were placed in the MIG-1 category, while those with higher income were placed in the MIG-II category. People in the first category can avail four percent interest on home loans up to Rs 9 lakh and three percent interest subsidy on home loans up to Rs 12 lakh in the second category.

General interest on excess loan

If you take a loan beyond this limit, the interest on the remaining amount will be paid at the normal rate. The maximum time limit for each type of loan can be 20 years. Now, in the case of each beneficiary segment, the total amount of subsidy is reduced from the initial principal.

Interest rate advantage

In PMAY, after deducting the subsidy amount provided by the government from the total amount of loan, interest is charged at the normal rate. Monthly installment of the person taking loan from PMAY scheme up to Rs 2,318 from 2012 and interest Total liability can be reduced from Rs 4,85,866 to Rs 5,56,102.How much will it benefit?



In Credit Linked Subsidy Scheme (CLSS), people from middle income group whose annual income is between 6 lakh to 12 lakh rupees will get 4 percent interest subsidy on 20 year term home loan of 9 lakh rupees. For example, the rate of interest on home loan is 9 percent, then you will have to pay only 5 percent under PMAY. Those with an annual income of Rs 12 lakh to Rs 18 lakh will get an interest subsidy of 4 per cent.

Benefit from bank

Banks, housing finance companies, regional rural banks, small finance banks and many institutions are providing the benefits of PM Awas Yojana to the customers. National Housing Bank (NHB) and HUDCO are also included in this scheme.

 

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