PMAY
PMAY
What is PMAY?
Pradhan MantriAwasYojana (PMAY) is a government initiative that aims to provide “Housing for all by 2022”. Under this initiative, the scheme offers affordable home loans for Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) 1 & 2 customers in the urban market.
First time home buyers or any pucca residential house in India and wishes to buy a dream home for his/ her stay may avail the benefit under this scheme.
Benefits of the scheme
1. Loan Amount: Those looking to avail a loan within the EWS and LIG, can avail a Home Loan of up toRs. 25 lacs including insurance. Those within MIG can avail a home loan up to Rs.140 lacs including insurance (minimum loan amount of Rs. 50,000 excluding insurance).
2. Tenure & Term: Home Loans can range from 1 up to 30 years in its tenure. The term, however, does not extend beyond the retirement age or 60 years, whichever is earlier (70 years for self-employed individuals).
3. Purpose: Credit Linked Subsidy will be available for housing loans availed for new/ resale purchase of home, construction loan for all segments and additionally for EWS/ LIG, extension/improvement of rooms to existing dwelling can be done.
4. Interest Subsidy: For EWS and LIG, the credit linked subsidy will be available only for loan amounting up to Rs. 6 lacs which would be eligible for an interest subsidy at the rate of 6.50% p.a. (Approx.Rs. 2.67 lacs), for tenure of 20 years or during the tenure of loan whichever is lower, to the eligible customers under the scheme. *
For MIG 1 customers, subsidy will be applicable for loan amounts up to ` 9 lacs and such loans would be eligible for an interest subsidy at the rate of 4% p.a. for tenure of 20 years. For MIG 2 customers, subsidy will be available for loan amounts up to ` 12 lacs and such loans would be eligible for an interest subsidy at the rate of 3% p.a. for tenure of 20 years.
5. Processing Fees: Processing Fees on loan amount as per maximum subsidy applicable (as per customer applicability) to be refunded once claim is received from NHB.
6. Easy Repayments: There are 2 options for repayment of the loan based on the EMIs payable.
a.) Through ECS (Electronic Clearing Service) based on standing instructions to your bank.
b.) Post Dated Cheques (PDCs) drawn on your Savings/Salary account.
7. Home Loan Tax Benefits: Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is Rs. 2,00,000/- for the interest amount paid in the financial year and up to Rs. 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.
8. Applicant and Co-Applicant: Home Loans can be applied for by an individual. The loan amount can be enhanced by including an earning co-applicant. Female property ownership is mandatory for EWS/ LIG category but not mandatory for MIG category.
*Terms and conditions apply.
