Pradhan Mantri Awas Yojana (PMAY) has been introduced by the Government of India aimed at providing affordable housing for all Indian citizens. With the launch of this 'Housing for All' program, 20 million houses will be built by 31st March, 2022.
The essence of Pradhan Mantri Awas Yojana is to boost the affordability of houses against inflation that has gripped the real estate sector for those belonging to economically weaker sections of society and low-income groups.
PMAY constitutes 2 components. They are Pradhan Mantri Awas Yojana - Urban (PMAYU), meant for the urban middle-class, and Pradhan Mantri Awaas Yojana - Gramin (PMAYG) or Pradhan Mantri Awaas Yojana - Rural (PMAY-R), directed towards people residing in rural areas.
The benefit that is bestowed under the PMAY scheme tends to be the subsidy extended by the government on buying a new home. The initial interest rate under the PMAY scheme is 6.50% per annum, and the maximum tenure is up to 20 years.
It is mandatory that one should not own a house to avail the subsidy, that is, you cannot be the owner of any existing home. The government also provides credit linked subsidies based on the applicant's income. It ranges from EWS/LIG to MIG 1 & MIG 2.
Furthermore, three schemes come under the purview of PMAY-U - these are EWS (Economically Weaker Sections)/LIG (Low Income Group), Credit Linked Subsidy Scheme CLSS (MIG-I), and CLSS (MIG-II).
Individuals who fulfil the following criteria as tabulated in the table below are eligible to avail the benefit of PMAY subsidy.
|Particulars||Economically Weaker Section||Lower Income Group||Middle Income Group 1||Middle Income Group-2|
|Maximum carpet area||30 sq.m.||60 sq.m.||160 sq. m||200 sq. m|
|Household annual income||Upto Rs. 3 lakh||Rs 3 lakh to Rs 6 lakh||Rs 6 lakh to Rs 12 lakh||Rs 12 lakh to Rs 18 lakh|
|Subsidy on home loan interest rate||6.50%||6.50%||4.00 %||3.00 %|
|Eligible Loan amount for Interest Subsidy||Rs. 6 lakh||Rs. 6 lakh||Rs 9 lakh||Rs 12 lakh|
|Maximum repayment tenure of home loan||20 yrs.||20 yrs.||20 yrs.||20 yrs.|
|Max. interest subsidy amount||Rs. 2,67,280||Rs. 2,67,280||Rs 2,35,068||Rs 2,30,156|
One of the best ways to calculate the PMAY subsidy is to use the subsidy calculator, which are abundantly available online. You need to put in some details like:
Once you submit the details, you will get to know the subsidy amount. Yes, it is that easy to compute PMAY subsidy!
To apply online, individuals can log on to the official PMAY website:
However, they need to keep a valid Aadhaar Card handy to apply.
There are two central nodal agencies, namely the Housing & Urban Development Corporation (HUDCO) and National Housing Bank (NHB) deputed to pay the interest rate subsidy for all PMAY loans.
The PMAY interest subsidy benefit can be claimed using the process given below:
You need to follow the step-by-step approach -
Disclaimer: The information available on this site has been gathered from publicly available sources and is accurate to the best of our knowledge. However, please be aware that the rates and other offers may vary based on your profile and may be subject to change without notice. Therefore, we advise you to verify the information before applying for any loan through this website. Magicbricks accepts no liability for any loss arising from the use of the information on this website. Refer T&C for the detail.
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**This service is available in select cities only.
*These calculators are only for illustrative purposes. These figures may or may not be applicable to your particular situation. Magicbricks will not be responsible for any loss or liability arising from the use of these calculators.