The Pradhan Mantri Awas Yojana (PMAY) has delivered a series of advantages for first-time homebuyers. A subsidy on your home loan interest is one of the top benefits that PMAY extends to you. Claiming the PMAY subsidy on your home loan is a simple foundation of your eligibility, in case you apply for the Pradhan Mantri Awas Yojana as per your income and purchase a home that fulfills the carpet area norms set out through the scheme.
Eligibility Criteria for Pradhan Mantri Awas Yojana:
You must apply as an unmarried individual or as a representative of a family unit that includes your parents, spouse, and unmarried children to get PMAY benefits and subsidies. Apart from these fundamental eligibility requirements, you will also need to meet a few income requirements and other PMAY eligibility components to get home loan subsidies.
The following are the eligibility requirements for the housing loan subsidy program:
- You are not allowed to possess any pucca houses in the country.
- The annual household income cannot exceed 18 lakh rupees.
- You must not have previously received any financial aid through a government housing initiative.
- A female family member’s name must be on the deed or property paper. Co-ownership with a female member is also permitted.
- The system applies to all towns as of Census 2011, as well as those that have been notified since then.
- Within 36 months after receiving the loan amount, the building, extension, or renovation of the property for which a house loan has been obtained must be completed.
- Already built houses do not come under the coverage of the scheme.
What is The Maximum PMAY Subsidy that You can Claim?
Under the Pradhan Mantri Awas Yojana, you can get a subsidy of up to Rs.2.67 lakh on your home loan. The amount of subsidy you are eligible for is determined by your income group and the total carpet area of the home you purchase. Here’s what you should be aware of.
- If you fall into the EWS or LIG categories, you can get a 6.5 percent credit-linked subsidy on a home loan up to Rs.6 lakh. If you apply under the EWS category, the carpet area of the property you buy should be 30 square meters, and if you apply under the LIG category, it should be 60 square meters.
- A credit-linked subsidy of 4% on a home loan of up to Rs.9 lakh is available under the MIG I category. If the home you buy has a carpet area of 160 square meters, you can apply for this discount.
- A credit-linked subsidy of 3% on a home loan of up to Rs.12 lakh is available under the MIG II category. If the home you buy has a carpet area of 200 square meters, you can apply for this discount.
The process to Claim PMAY Interest Subsidy Benefit
The following steps can help you acquire a home loan subsidy under the PMAY scheme:
- Check your income threshold: If you’re thinking of applying for a PMAY subsidy on your house loan, you should first see if you meet the scheme’s income requirements (EWS, MIG, or LIG). The carpet area for your residential home against which you would be eligible for the PMAY scheme will be determined by your income criterion. You can use an online housing loan EMI calculator to figure out how much you can save on your house loan.
- Fill out the PMAY application online: The PMAY application can be completed both online and offline. While offline application filing is a time-consuming process, you can apply for pmay online by following the procedures outlined below.
- Visit the PMAY website at https://pmaymis.gov.in for further information.
- Select the category for which you want to apply for the scheme under the ‘Citizen Assessment’ page.
- To link your Aadhar Card to your application, fill out the form below (This is mandatory)
- You’ll be taken to the application form, where you’ll have to fill in your other personal information.
- To save your PMAY application for future use, click on the ‘Save’ button.
What are the Benefits of the CLSS Scheme?
The following are the advantages of the housing loan subsidy program:
- The subsidized interest rate on your home loans up to a specified level.
- The subsidized amount is deposited directly into your account under the plan. As a result, both your outstanding principal and your EMI are decreased.
- You can extend the term of your loan up to 20 years.
- The amount of the loan has no upper limit. If the sum exceeds the indicated limits, interest will be charged at the lender’s normal rate.
- You may be eligible for tax benefits as a result of the government’s home loan subsidy, as indicated in the Income Tax Act of 1961.
Things to keep in mind about PMAY CLSS
- Only residential loans are eligible for the PMAY CLSS subsidy.
- The highest loan amount that can be used to profit from this program is INR.6 lakhs.
- A maximum subsidy of INR.2.67 lakhs is available to the applicant.
- To be eligible for this plan, the applicant must not own or be the owner of a “pucca” dwelling in his or her name or the name of a family member.
- If the applicant or any member of his family has previously taken advantage of a similar housing program offered by the Central or State governments, he or she will be ineligible for the PMAY-CLSS program.
- It is critical to have a female owner. If the applicant is a man, he must enlist the help of a female family member (wife, daughter, or mother) to become a co-owner of the property.
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