Are you looking to buy your first home? Is the prospect of paying high interest rates holding you back from closing the purchase?
You need not lose sleep over this, as anybody can now buy a house without worrying about the pressures of financial commitment. Thanks to Pradhan Mantri Awas Yojana (PMAY), housing for all is not a dream, but is turning into reality.
Pradhan Mantri Awas Yojana offers subsidies on home loan interest rates, which is especially useful for first-time buyers. It makes home loans accessible to everyone. It also helps eradicate the worries that come with acquiring finances for housing purposes.
The following categories are eligible for financing under PMAY.
- Economically Weaker Section (EWS)
- Those with a maximum annual income up to Rs.3 lakh form the EWS category.
- Those who belong to this section enjoy the maximum percentage of interest subsidy of 6.5%, provided under the PMAY scheme.
- Maximum loan amount eligible for interest subsidy under this section is Rs.6 lakh. One is free to buy a property that costs more, but the benefit will be applicable to the Rs.6 lakh limit.
- Also, the maximum subsidy amount under the EWS category is Rs.2.67 lakh.
- For this category, the maximum dimension of the carpet area cannot be more than 30 sq. mts.
2. Low Income Group (LIG)
- Those with annual income between Rs.3 lakh and Rs.6 lakh form the LIG Group.
- Citizens who are a part of this LIG group also enjoy maximum percentage of interest subsidy of 6.5%, provided under the PMAY scheme.
- Maximum loan amount eligible for interest subsidy under this section is Rs.6 lakh. The interest subsidy is calculated on the maximum loan amount.
- Maximum subsidy amount that can be obtained under the LIG category is Rs.2.67 lakh.
- 60 sq. mts. is the maximum dimension of the carpet area that can be constructed under this component.
For the above two categories, the ownership of the house constructed or acquired should be in the name of the female head of the household, or in the joint name of the male head of the household and his wife. In cases where there is no adult female member in a family, a house can be constructed or bought in the name of a male member of the household.
3. Middle Income Group-1 (MIG-1)
- Those with income between Rs.6 lakh and Rs.12 lakh per annum, form the MIG-1 category.
- People falling under this category get an interest subsidy of 4%. It is the second best in terms of percentage rate of interest subsidy.
- Maximum loan amount eligible for interest subsidy under this section is Rs 9 lakh. The interest subsidy is calculated on the maximum loan amount.
- Maximum subsidy amount that can be obtained is Rs 2.35 lakh.
- 160 sq. mts. is the maximum dimension of the carpet area that can be constructed under this category.
4. Middle Income Group – 2 (MIG – 2):
- Those earning between Rs 12 lakh – Rs 18 lakh per annum, form the MIG-2 category.
- In this category, the interest subsidy is of 3%.
- The interest subsidy is calculated on a maximum loan amount of Rs 12 lakh.
- Maximum subsidy amount that can be obtained in this category is Rs 2.30 lakh.
- The size of property constructed/bought under this category cannot be more than 200 sq. mts.
Women’s ownership of a property is not mandatory for these last two categories.
Lucrative Home LoansThanks to the objective of housing for all, Pradhan Mantri Awas Yojana now offers excellent opportunities for first-time home buyers, taking away a lot of worries on the financial front. What’s more, you can take the help of companies that can get you get attractive home loans in India that suit your requirements.