How is the Subsidy Under Pradhan Mantri Awas Yojana (PMAY) Given?

Pradhan Mantri Awas Yojana (Urban) for guaranteeing lodging for all in metropolitan regions was dispatched on 25th June 2015 giving pucca houses to all qualified recipients by 2022.

The idea behind the introduction of PMAY was to provide affordable housing to every Indian, and in this regard, the government set to build about 2.95 crore houses by 2022. Under this scheme, the Central government has extended PMAY subsidies that reduce the overall home loan burden.

Nonetheless, before applying for this PMAY subsidy, one needs to know the claim process to make it hassle-free.

The Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (CLSS) presented by the Central Government. It is a first-of-its-sort drive intended to give ‘Lodging To All’ the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), and Middle-Income Group-II (MIG-II) of the Urban culture before the year’s over 2022.

Under this Pradhan Mantri Yojana, they will be furnished with home advance revenue appropriation on buy/development/expansion/improvement of their home. This drive will see two focal nodal organizations viz., Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) channelizing endowment to the loaning foundations, which thusly will assist the qualified candidates with profiting the subsidy.

Indiabulls Housing Finance Limited is regarded to broaden the reasonable lodging advantages of Pradhan Mantri Awas Yojana plot through a Credit-Linked Subsidy Scheme as a moneylender. You can apply for PM Awas Yojana by clicking underneath to check your qualification models.

 

The Central Government of India had presented Interest endowment on private property advance for EWS/LIG families from June 17, 2015. Under this plan, candidates who have a yearly pay of up to Rs. 3 Lakhs and up to Rs. 6 lakh can apply for a credit and profit sponsorship.

Notwithstanding, the recipient family ought not claim some other pucca house in any piece of India.

The most extreme sponsorship one can get is up to Rs. 2.67 lakh.

Interest appropriation can be profited at a pace of 6.5%* for a residency of 20 years or residency of the credit, whichever is lower.

The sponsorship will be pertinent just for advance sums up to Rs. 6 lakh.

Extra advance past Rs. 6 lakh, assuming any, will be accessible at a non-sponsored rate.

Subsidy attributed forthright to the advance record of the recipient brings about decreased viable home advance rate and EMI

Aadhaar Card is a compulsory prerequisite while applying for PMAY plot.

Claim process for PMAY subsidy

About this concession on home loans, borrowers should know that they cannot apply for it directly. Once they complete their PMAY application process and avail credits, lenders will do the remaining work. Here are the steps –

  1. Once a home loan is disbursed, financial institutions forward the required information to nodal agencies like NHB or HUDCO. The reason being verification of PMAY details and other information.
  2. After that, NHB or HUDCO will complete due diligence and approve a particular subsidy.
  3. Following this approval, this subsidy amount will be credited to lenders.
  4. After receiving the PMAY subsidy amount, the home loan provider will credit the same to a borrower’s account and adjust the home loan accordingly.

Along with this claim process, one should also know how this subsidy is adjusted for a home loan availed under PMAY.

Know how this subsidy is adjusted

This interest subsidy is not applicable to the rate of interest charged by a financial institution. Instead, it is calculated on the Net Present Value (NPV) of a home loan. For instance, you have availed an Rs.12 lakh loan, and this NPV of total interest value at 3% comes down to Rs.2.30 lakh. Hence, individuals need to pay instalments of Rs.12 lakh – Rs.2.30 lakh = Rs.9.7 lakh. 

Additionally, borrowers need to pay this amount as per the interest rate levied by that particular financial institution.

Moreover, individuals can now track their subsidy for the PMAY scheme online. Here is the process –

Step 1: Visit the CLSS Awas Portal.

Step 2: Provide the application ID given by respective financial institutions. Usually, a borrower receives this number within 24 hours of a lender submitting an application.

Step 3: Verify their mobile number via OTP.

Step 4: It will then show all the required details.

A point to note here is that if an individual has received a subsidy in multiple disbursements, this portal will show all the previous details. Hence, one can easily keep track of it.

This online facility can also be used for PMAY applications and checking the PMAY list. This list allows individuals to ascertain whether their application has been approved or not. They can visit the online portal of PMAY and provide their name or registration number and get the required details. This process has two components – Urban and Gramin.

The Pradhan Mantri Awas Yojana has presented an opportunity for individuals to avail a house at a reduced cost. Nonetheless, such aspiring homebuyers need to meet a set of PMAY eligibility norms.

Eligibility criteria of PMAY

  1. Applicants and their immediate family members cannot have a pucca house anywhere in this country.
  2. Their annual income must stay within the bracket of Rs.3 lakh to Rs.18 lakh.
  3. Individuals applying for PM Awas Yojana must not have availed any housing scheme offered by their respective state governments or the Central government.
  4. The property ownership deed must have the name of a female individual of a particular family. Also, female ownership is mandatory for EWS and LIG, and it is desirable for MIG.
  5. The construction of the property must be completed within 36 months of getting the home loan amount.
  6. Lastly, the property’s location must be within the bounds of statutory towns notified in the 2011 Census.

Meeting these eligibility norms enables individuals to avail the key benefits of the Pradhan Mantri Awas Yojana. Additionally, they should keep in mind the eligibility criteria and documents required by a particular lending institution.

Furthermore, the availability of pre-approved offers extended by leading HFCs further streamlines the loan application process and saves time. Financial products like loans against property, home loans, etc., are included in this offer, and individuals can check their pre-approved offer by providing their essential contact details.

The availability of PMAY subsidies has eased the process of availing a home loan and buying a house. Nonetheless, this is quite a complex process; hence, individuals must go through the fine print of this scheme before applying, especially if they are a first time home buyer eligible for PMAY. 

 

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