The Pradhan Mantri Awas Yojana(PMAY) has brought a series of benefits for first-time homebuyers. A subsidy on your home loan interest is one of the prime advantages that PMAY extends to you. Claiming the subsidy on your home loan is easy basis your eligibility, if you apply for the Pradhan Mantri Awas Yojana according to your income and buy a home that fulfils the carpet area norms set out by the scheme.
Check if you are eligible for the Pradhan Mantri Awas Yojana
To access PMAY benefits and subsidies, you must either apply as an unmarried individual or as a representative of a family unit that includes your parents, spouse, and unmarried children. Apart from these basic eligibility points, you will also have to abide by a few income criteria and other PMAY eligibility norms to claim subsidies on your home loan. Read some of these criteria below:
You or your family cannot be the owner of a pucca house. Being an existing homeowner declares you unfit to apply for a home loan under PMAY.
You or your family should not have availed facilities and benefits of another government housing schemein the past.
You need to have an Aadhaar Card to apply for the Pradhan Mantri Awas Yojana.
To be eligible for PMAY under EWS category, your annual household income should be below Rs. 3 lakhs
To be eligible for PMAY under the LIG category, your combined annual household income should be between Rs.3 lakh to Rs.6 lakh.
To qualify as a MIG-I applicant, your annual household income should be between Rs.6 lakh and Rs.12 lakh.
To qualify as a MIG-II applicant, your annual household income must not exceed Rs.18 lakh.
What is The Maximum Subsidy that You can Claim?
You can enjoy a subsidy of up to Rs.2.67 lakh on your home loan under the Pradhan Mantri Awas Yojana. The percentage of subsidy that you can claim depends on the income category you fall under and the total carpet area of the house you buy. Here’s what you should know.
If you fall under the EWS or LIG category, you can claim a credit-linked subsidy of 6.5% on a home loan of up to Rs.6 lakh. The carpet area of the home you buy should be 30 sq. mt. if you apply under the EWS category and 60 sq. mt. if you apply under the LIG category.
Under the MIG I category, you can claim a credit-linked subsidy of 4% on a home loan of up to Rs.9 lakh. You can claim this subsidy if the home you buy has a carpet area of 160 sq. mt.
Under the MIG II category, you can claim a credit-linked subsidy of 3% on a home loan of up to Rs.12 lakh. You can claim this subsidy if the home you buy has a carpet area of 200 sq. mt.
There is no limit to the loan amount, however interest subsidy will be calculated on a maximum of Rs. 6 lacs for EWS/LIG, Rs. 9 lacs for MIG I and Rs. 12 lacs for MIG II.
The carpet areas for MIG I and MIG II category has been revised recently. This revised mandate allows you to purchase a bigger house on subsidy now. However, the important thing you must remember is that the PMAY subsidy is applicable for a maximum considered tenure of 20 years.
You can gain subsidies on your home loan even if you use funds from your sanction for renovation and construction purposes. The only exception here are MIG I and MIG II applicants. As a representative of these two income categories, you cannot use funds from your home loan to do anything else other than buying a home. Also, under PMAY-G (Gramin) segment, you can claim a credit-linked subsidy of 3% on your home loan of up to Rs.3 lakh.
So, say you take a home loan of Rs.12 lakh on a 9% interest rate. Then your EMIs will be Rs. 17,995 and your total interest cost for 20 years will come up to Rs.23.19 lakh. Now, you are eligible for a 3% credit-linked subsidy, which comes up to Rs.2,30,156. When this subsidy amount is deducted from your loan amount, then the revised loan amount will be Rs.9,69,844.
How to Claim the Subsidy?
Once you enrol for the Pradhan Mantri Awas Yojana, you can apply for a home loan with a lender of your choice. Here, be sure to select the one enlisted under PMAY. The next step will be to compare various lenders and loan offerings according to the home loan interest rates. As soon as your application gets approved, you will receive your loan amount in your account. The lender will then claim subsidy on your behalf from the government.
When the lender receives the subsidy, they will credit it into your home loan account and your EMIs will decrease accordingly from there on. This means that initially while repaying your home loan you will have to put forward EMIs with respect to the normal interest rate. It is only after a few months, when your lender’s application on your behalf is approved by the government that your EMIs will decrease and you will get compensated for the excess you have already repaid towards your interest obligation.
You can considerlenders like Bajaj Finserv to avail a Home Loan of up to Rs.3.5 crore at an affordable rate of interest. Make sure you check your pre-approved offer and enjoy a more convenient as well as a better repayment experience on your home loan.