How to Get a Home Loan Subsidy under The Pradhan Mantri Awas Yojana
Nishant Vivek 18 September 2018
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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.
Comments
khambekarsandip
1 year ago
Respected sir, I purchase 2bhk flat in nov 2017 .The flat owner shall be my wife with anual income 3.2 lakh The loan amount willbe Rs18 lakh The is taken by co-operative bank but bank didnot register for PMAY subsidy scheme Please suggest me on my email address
ahirekiran_23
1 year ago
Hi,
In 2018 I bought a flat in Pune city (Maharashtra)
I bought this flat in cash/other personal loans.
Now my flat is nil. No loan on flat.
Can I eligible to PMAY.
Can I apply for subsidy.
Veena Misal
2 years ago
Sir how do i apply for subsidy towards the bank
As per they have told to write letter so plzz can anyone help me with the letter format
niranjan padhi
2 years ago
I had applied for subsidy of home loan under, pradhan mantri avas yojna, but still not received, so how to I know, when I will get it. I am now trouble with money, please help me. Loan taken from Indian bank, buguda, Odisha Branch .
Veena Misal
Replied to niranjan padhi comment 2 years ago
Sir plzz tell me how did u applied for pmay
DHARMENDRA SAHU
2 years ago
Sir i stast my home loan account on february 26 2019 and EMI from april 2019 , Then i want to know that can i link my home loan account before dec 2019
preeti ghonge
2 years ago
I just wanted to ask this policy Pradhan Mantri Awas yojana for home loan. it is only womens or Mens also.
sarika dharmaraj
2 years ago
hello.. I am Sarika Dharmaj , I am ownership in house, I had applied for subsidy of home loan under, pradhan mantri avas yojna, but still not received, so how to I know, when I will get it. I am now trouble with money, please help me. Loan taken from Addhar Housing Fiance Ltd., my Loan is Syndicate Yeyyadi Branch, Mangalore This is my House Loan Ac No. 01799740000066 Please Help me.
Ds Paliwal
2 years ago
I had applied for subsidy of home loan under, pradhan mantri avas yojna, but still not received, so how to I know, when I will get it. I am now trouble with money, please help me. Loan taken from Addhar Housing Fiance Ltd., Udaipur Branch .
Ranjeet
2 years ago
Hi, how can i apply for Pardhan Mantri Awas Yojna,
Arvind Bhatt
2 years ago
my Loan is Single and my allotment are also single i applied the PMAY but the bank has reject my application due to the property are female member or joint ownership with wife than I add my spouse name as co- allottee in allotment letter as I am legible to PMAY.
Sachin Warat
Replied to Arvind Bhatt comment 2 years ago
Can you help me. How can you add your wife name in your registry. I am also facing same problem.
Keyur Hirapara
2 years ago
I had applied for subsidy of home loan under, pradhan mantri avas yojna, but still not received, so how to I know, when I will get it. I am now trouble with money, please help me.
Apply in August 2018.
gourav
3 years ago
Hi Nishant...is it true that woman ownership is mandatory get subsidy in LIG schemes ?
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