Are you wondering how much benefits are available to you under the Pradhan Mantri Awas Yojana? Check out all eligibility criteria and available subsidies in this guide.
The Pradhan Mantri Awas Yojana or the Housing for All by 2022 Scheme is a huge boon for first-time home buyers. If you meet the eligibility criteria, you can avail subsidies on your home loan interest rate, which in turn, reduces your overall home loan burden.
Here, in this post, you can find all that you need to know about the subsidies and eligibility criteria of this scheme and the subsidy you are eligible for.
What are the Eligibility Criteria?
To access the benefits of the housing scheme, you have to meet some qualifying criteria. Here are the details of the scheme:
● You and your family members (husband, wife, and dependent children comprise a family unit) should not have owned a pucca house ever before. This scheme is primarily for first-time home buyers. If you have previously owned a home, then you are not eligible for the benefits offered by this scheme.
● You or your family members should not have availed any benefits from any government housing schemes provided either by the central or state government.
● You must hold an Aadhaar card to apply for this scheme.
● For eligibility under the EWS (Economically Weaker Section), your cumulative household income must be lesser than Rs. 3,00,000 in a financial year.
● For eligibility under the LIG (Low Income Group), your household income must be between Rs. 3,00,000 to 6,00,000 in a financial year.
● For eligibility under the MIG-I (Mid Income Group), your household income must be between Rs. 6,00,000 to 12,00,000 in a financial year.
● For eligibility under the MIG-II, your household income must be above Rs. 12,00,000 but must not exceed Rs. 18,00,000 in a financial year.
Now, that you’ve understood the eligibility criteria, let’s take a look at the overall subsidies you can avail under this scheme.
How much subsidy can you claim under the Scheme?
The amount of subsidy available to you depends on several factors like – the total carpet area of the home you are purchasing, your income category and whether you are a woman, senior, SC/ST. The maximum subsidy available under the PMAY is Rs. 2.67 lakhs.
Here’s a closer look at the subsidies available to different categories:
● For EWS and LIG – You can claim a credit-linked subsidy of up to 6.5% on home loans up to Rs. 6 lakhs. To qualify for this, the carpet area of the home should not exceed 30 m2 for EWS and 60 m2for LIG.
● For MIG-I – You can avail a credit-linked subsidy of up to 4% on home loans up to Rs. 9 lakhs. The carpet area of the home should not exceed 160 m2.
● For MIG-II – You can avail a credit-linked subsidy of up to 3% on home loans up to Rs. 12 lakhs and the carpet area of the home should not exceed 200 m2.
Note that there is no cap on the loan amount you can borrow. However, the interest subsidy will be applicable only up to the loan amount mentioned for each category.
Let’s illustrate the available subsidies using an example. Say, you belong to the category MIG-II, and you borrow a home loan for Rs. 12 lakhs and the interest rate is 9%. For tenure of 20 years, the EMI will be Rs. 17,995 and the total cost of your loan, including the interest is Rs. 23.19 lakhs.
By using your 3% credit-linked subsidy under the Pradhan Mantri AwasJoyana, you are eligible for a deduction of Rs. 2,30,516. This brings down your total loan burden to Rs. 9,69,844 which effectively reduces your monthly EMI.
As you can see, this scheme is a great option for first-time homebuyers. If you are eligible, make sure to avail the subsidies and reduce your home loan burden.