How to Reduce Home Loan EMI with the PMAY?

The biggest for most Indians is to own a house. As owning a house is a matter of pride for some, while to others gives financial security and mental peace. Thus the Government of India has launched a housing scheme known as Pradhan Mantri Awas Yojana (PMAY) to bring affordable homes for the low-income groups.

The scheme is mainly for the economically weaker sections (EWS) of the society, low middle-income group (LIG), and middle-income group (MIG) individuals, and the subsidy available is termed as "Credit- Linked Subsidy Scheme."

The Government of India takes into account the whole family’s income while deciding the subsidy to which an applicant is entitled. Moreover, the subsidy rate provided to applicants is often calculated according to the economic category of which they are a part of.

Now, you must be thinking about whether you are eligible?

How can you avail this subsidy?

How should an individual apply for the scheme?

If yes, here is all that you need to know about the scheme and how you can reduce Home Loan EMI with the PMAY.

Eligibility Criteria: 

The first thing you should check is the eligibility criteria. All home loans sanctioned should be eligible for availing the interest subsidy.

-People who fall in the annual income between 3 lakhs to 6 lakhs are eligible to avail the subsidy of 6.50%

-Individuals with a yearly income of 12 lakhs and 18 lakhs can avail a subsidy of 3% to 4% on their interest rates.

-To avail this scheme, families with a husband, wife, and unmarried children are eligible. It involves constructing a new house, or obtaining a newly built home, or even repurchasing an existing home. Even young unmarried men and women may apply for this PMAY CLSS subsidy.

Interest & EMI of the home loans under the PMAY

If you're applying for an interest subsidy under PMAY, your lender has to submit the application to the National Housing Bank.

-The maximum tenure of the housing loans under the PMAY scheme is 20 years.

-Once you are eligible for the subsidy, then the National Housing Bank will pay the entire subsidy in one go to your lender. This further reduces your EMI burden.

More Preferences Are Given To Women

As per the PMAY scheme, women are given more preference than men. Single, working women, widows, differently-abled women, transgender, and people belonging to scheduled castes and tribes are given first preference.

How to apply for a home loan under this scheme:

Borrowers should express their desire to avail the subsidy. The lenders then get an agreement signed from the customer, ensuring that this is only home under their name. To avail this subsidy, To make use of this subsidy, no additional processing fee is charged.

The borrower may then either choose for reduced EMIs or, repay the loan easily with the existing EMI.

To increase the implementation of this subsidy, several housing financial banks such as Shubham Housing Finance, Aadhaar Housing Finance, and non-banking financial institutions have been chosen as primary lending institutions.

Hope this article is helpful for you. If you have any doubts, you can reach us at any time. We are here to help you!