For many in India, owning a home is an unachievable dream. To make this dream a reality, the Government of India has introduced an initiative called the Pradhan Mantri Awas Yojana (PMAY).
What Is the PMAY Scheme?
The PM Awas Yojana aims to provide affordable housing to the economically-weaker sections of society. You can become a homeowner on easy terms and benefits, under the PMAY scheme. One of the major verticals of this programme – the Credit-Linked Subsidy Scheme, offers a Pradhan Mantri Awas Yojana subsidy on home loan interest rates. This home loan subsidy benefits the urban poor in availing of housing finance at cheaper ROIs. The PMAY subsidy amount depends on the applicant’s income and category.
The beneficiaries of PMAY-U include.
- Economically Weaker Sections (EWS)
- Lower Income Groups (LIG)
- Middle Income Groups (MIG)
Additional Read – What is the Eligibility for PMAY Scheme?
Can I Avail PMAY on Existing Home Loan?
If you are looking to take benefit of PMAY for existing home loan, then you don’t qualify for the PMAY scheme. The PMAY scheme is launched for those people who are looking to buy a home for the first time.
The most vital criteria to get a PMAY subsidy is that the applicant must not own any pucca house in their name across India. This is why PMAY on existing home loan is not a possibility.
To understand more about Pradhan Mantri Awas Yojana for existing home loan and why PMAY for existing home loan is not possible, you need to take a look at the PMAY eligibility criteria of the PMAY scheme.
Who Can Avail PMAY?
- A beneficiary family should comprise of husband, wife, and unmarried sons or daughters.
- The beneficiary must be a first-time homebuyer.
- The beneficiary should not own any pucca house in their name or the name of any family member.
- The beneficiary or their family should not have availed central assistance under the PMAY scheme or any other Government housing scheme.
- Married couples can apply for subsidy under individual or joint ownership of the property; both options will receive just one subsidy.
The eligible applicants can avail of subsidy under the following guidelines.
|Beneficiary||Annual household income||Maximum loan allowed for availing subsidy||Interest rate Subsidy|
|EWS||Up to Rs.3 lakhs||Rs.6 lakhs||6.5% p.a.|
|LIG||Rs.3 to 6 lakhs||Rs.6 lakhs||6.5% p.a.|
|MIG-1||Rs.6 to 12 lakhs||Rs.9 lakhs||4% p.a.|
|MIG-2||Rs. 12 to 18 lakhs||Rs.12 lakhs||3% p.a.|
You can also apply for the Pradhan Mantri Awas Yojana online. The PMAY online apply process is quite simple. Log onto the official scheme website and click on the ‘Citizen Assessment’ button to be redirected to an online application form. Input your Aadhar card number in the form and click submit. Remember, before you fill out the application, make sure to check your eligibility and name in the beneficiary section of the PMAY list.
If you’re looking to apply for a home loan under this scheme, head to Tata Capital. You can also visit our website, to know more about Pradhan Mantri Awas Yojana for existing home loan.
So, what are you waiting for? Check your Pradhan Mantri Awas Yojana eligibility and apply for a housing loan with Tata Capital today!