To ensure that there are no homeless in the country, the Government of India has planned to give home to the homeless by 2022, which has been named the Pradhan Mantri Awas Yojana. Under this, the government will make people build houses, as well as those who buy houses or flats on loan, they will get subsidy.
Pradhan Mantri Awas Yojana was launched in June 2015 with the aim of providing houses to all people in the country. Under this scheme, a target has been set to provide houses to all by 2022. This scheme is divided into 3 phases. The first phase of the scheme started in June 2015, which was terminated in March 2017. The second phase started from April 2017, which ended in March 2019. The third and last phase of the scheme was started in April 2019 and will be closed by March 2022 with providing homes to all.
The benefit of Pradhan Mantri Awas Yojana (PMAY) was earlier only for the poor. But now, by increasing the amount of home loan, the poor and middle class of urban areas have also been brought under its purview. Initially, the amount of home loan in PMAY was from 3 to 6 lakh rupees, on which interest subsidy was given, now it has been increased to 18 lakh rupees.
Age should be from 21 to 55 years
Applicants should be 21 to 55 years of age to avail PMAY. If the head of the family or the applicant is over 50 years of age, then his principal legal heir will be included in the home loan. The annual household income for EWS (lower economic class) is fixed at Rs 3 lakh. The annual income for LIG (low income group) should be between 3 lakh to 6 lakh. Now people with annual income up to Rs 12 and 18 lakhs can also take advantage of this.
Under this scheme, 6.5 percent credit linked subsidy is available only on loans up to six lakh rupees. People earning up to Rs 12 lakh per annum can avail four per cent interest subsidy on loans up to Rs 9 lakh. At the same time, people with an annual income of up to Rs 18 lakh can avail three percent interest subsidy on loans up to Rs 12 lakh.
This is how the subsidy will be calculated
Let’s say that the annual income of a person taking a loan is 6 lakh rupees. In this case, the actual loan amount will be 6 lakh rupees. On this, the monthly installment at the rate of 9 per cent will be Rs 5,398. In this way, the total interest in 20 years will be 6.95 lakhs. The NPV will be 2.67 lakh rupees after subsidizing your interest according to 6.5 percent subsidy. The government is providing this interest subsidy to the people. Accordingly, if your PMAY loan becomes Rs 3.33 lakh instead of 6 lakhs, due to which your monthly installment decreases to Rs 2,996.
How will you get the benefit of subsidy?
First of all talk about the subsidy from the home loan institution. If you are eligible then your application will be sent to the Central Nodal Agency first.. If your annual income is seven lakh and the loan amount is 9 lakh, then your subsidy will be 2.35 lakh rupees. After deducting this, your loan amount will be Rs 6.65 lakh, on which you will pay the monthly installment. If the loan amount is more than your subsidy eligibility, then you will have to pay interest at the normal rate on the additional amount.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.