A home loan availed against the mortgage of property/house can be availed for purchasing or constructing a new house. You can avail a home loan from banks and non-banking financial institutions for a tenure up to 30 years. Without a doubt, a home loan can ease the process of having your home through Equally Monthly Installments. But is it affordable for everyone? Can everyone make the payments for Principal amount taken towards the home loan along with interest charged on these loans? The answer is NO! Poor people can hardly dream about taking a home loan. Keeping this in mind, the government introduced a housing scheme to provide affordable housing for all.
What is Pradhan Mantri Awas Yojana?
PMAY or Pradhan Mantri Awas Yojana was introduced by the government in the year 2015 with the objective to provide Pucca houses to 20 million households by the year 2022. It aims to redevelop the slum areas into Pucca house by In-Situ-redevelopment of Slum areas. Further, the government also provides financial assistance of about Rs. 1.5 Lakhs to the economically weaker sections of society for the construction of the house. These houses are to be constructed safely as per the guidelines of RERA act.
What is a Credit-Linked Subsidy Scheme?
One of the significant components of the scheme is to provide home loans at a subsidized home loan rate at 6.5% per annum. The government gives special significance to the women borrowers and minorities and provides them with concessional home loan rates.
Who can avail CLSS( Credit-Linked Subsidy Scheme)?
Home loan borrowers can apply for the home loan under CLSS if they meet the following eligibility criteria.
- You can get a home loan subsidy only if you are first-time home loan borrowers. If you have already owned a house, you cannot take a Credit linked subsidy scheme. Also, if the home loan borrowers have previously availed any government scheme for the house, they cannot avail a home loan subsidy under PMAY scheme.
- Whether you can own a home loan at subsidized rates and the amount of home loan you can avail under PMAY scheme is dependent on your income level, and it differs from individual to individual based on the income level.
- If you earn Rs 3 Lakhs per annum, you would be categorized under the Economically Weaker Sections, and you can avail a loan amount up to Rs. 6 Lakhs. Further, the cap for maximum dwelling units or net carpet usable for a house for economically weaker sections is 30 Sq. m
- Individuals who are earning between Rs 3 Lakhs to Rs 6 Lakhs, fall in the bracket of Lower Income Group and can similarly avail for a home loan amount up to Rs 6 Lakhs. The maximum limit for a dwelling unit, in this case, is 60 Sq.m.
- For Middle-class individuals, there are two sub-categories; MIG 1 and MIG 2. If you have an income ranging between Rs 6 Lakhs to Rs 12 Lakhs, you fall in the category of MIG1 and are eligible for a loan amount up to Rs. 9 Lakhs. On the other hand, MIG2 are eligible for loan amounts up to Rs 12 Lakhs. MIG2 has an annual income between Rs 12 Lakhs to 18 Lakhs. The net carpet area for a dwelling unit for MIG1 is 160 sq m, and for MIG2 it is 200 Sq. m.
How can you avail PMAY Subsidy on your home loan?
You can also apply for the PMAY scheme through online and offline modes. To apply for the CLSS scheme online visit the PMAY official website on pmaymis.gov.in.Next, under the citizen assessment option, Choose between ‘ For slum dwellers’ and ‘Benefit under the other three components’ and now enter the Aadhar details on the page displayed. Also, fill in necessary information such as name, contact number and others in the application form. After filling the form, enter the Captcha code and click on the Save button.