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Pradhan Mantri Awas Yojana (PMAY) is a comprehensive and progressive mission, launched in India. The scheme is an initiative by the Government of India which aims at providing affordable housing for the economically weaker classes by the year 2022.
The following are eligible for the scheme:
#1. Economically Weaker Section (EWS) – Families with an annual income up to Rs. 3 Lakh are eligible for the PMAY scheme.
#2. Low Income Group (LIG) – Families with an annual income between Rs. 3 Lakh and Rs. 6 Lakh can avail the benefits of the affordable housing scheme.
#3. Middle Income Group I (MIG I) – Families within an annual income between Rs. 6 Lakh and Rs. 12 Lakh are eligible.
#4. Middle Income Group II (MIG II) – Families with an annual income between Rs. 6 Lakh and Rs. 12 Lakh.
#5. Women belonging to EWS and LIG categories can avail all the benefits of the scheme.
#6. Scheduled Caste (SC), Scheduled Tribe (ST) and Other Backward Class (OBC).
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You’re not eligible for the PMAY scheme if…
1. If your family has already availed of central assistance under any housing loan scheme in the past.
2. You already own a house in your name or in the name of a family member in India.
3. Your spouse claims interest on subsidy for a house.
What does the PMAY scheme offer?
| Particulars | Middle Income Group I | Middle Income Group II |
| Annual Household Income | 6-12 lakh | 12-18 Lakh |
| Interest Subsidy | 4% | 3% |
| Eligible Loan Tenure for a Subsidy | 20years | 20years |
| Eligible Loan Amount for a Subsidy | 9 Lakh | 12 Lakh |
| Maximum Carpet Area In Sq Metres | 90 sq. m. | 110 sq. m. |
| Maximum Carpet Area In Sq Ft | 968.5 sq. ft. | 1,184 sq. ft. |
| The Discount rate for Net Present Value (NPV) Calculation of interest subsidy (%) | 9% | 9% |
Impact under MIG I
Borrowers get an interest subsidy of 4%
Annual income: Rs 7 lakh per annum
| Example | A | B | C |
| Loan Amount (Rs) | 6 Lakh | 9 Lakh | 12 Lakh |
| Loan Amount eligible for a subsidy | 6,00,000 | 9,00,000 | 9,00,000 |
| Interest subsidy (Rs) | 1,56,712 | 2,35,068 | 2,35,068 |
| Balance Loan (Rs) | 4,43,288 | 6,64,932 | 9,64,932 |
| Normal EMI @ 8.5% | 5,207 | 7,810 | 10,414 |
| Reduced EMI after subsidy | 3,847 | 5,770 | 8,374 |
| Monthly savings due to subsidy | 1,360 | 2,040 | 2,040 |
| Annual savings | 16,320 | 24,480 | 24,480 |
| Total savings over the loan tenure (Rs) | 3.26 Lakh | 4.89 lakh | 4.89 Lakh |
All figures are in Rs. For tenures of over 20 years, tenure of 20 years has been considered for the purpose of calculation of interest rate subsidy.
Impact under MIG II
Borrowers get an interest subsidy of 3%
Annual income: Rs 14 lakh per annum
| Example | I | II | III |
| Loan Amount (Rs) | 9 Lakh | 12 Lakh | 15 Lakh |
| Loan Amount eligible for subsidy | 9,00,000 | 12,00,000 | 12,00,000 |
| Interest subsidy (Rs) | 1,72,617 | 2,30,156 | 2,30,156 |
| Balance Loan (Rs) | 7,27,383 | 9,69,844 | 12,69,844 |
| Normal EMI @ 8.5% | 7,810 | 10,414 | 13,017 |
| Reduced EMI after subsidy | 6,312 | 8,417 | 11,020 |
| Monthly savings due to subsidy | 1,498 | 1,997 | 1,997 |
| Annual savings | 19,796 | 23,968 | 23,968 |
| Total savings over the loan tenure (Rs) | 3.59 Lakh | 4.79 lakh | 4.79 lakh |
Online application for Pradhan Mantri Awas Yojana
The online application process to apply for a PMAY scheme is very simple and convenient.
- For PMAY you can apply online from their official website http://pmaymis.gov.in/
- Enter your personal details and your bank account details
- If you’re eligible for a subsidy, your application will then be forwarded to the Central Nodal Agency (CNA)
- Once approved, the subsidy amount will be credited to your account
- With a home loan EMI calculator, you can get the exact amount you need to shell out every month towards your home loan
Before you fill the application, make sure that your name is listed in the beneficiary list and you’re eligible to apply for the PMAY scheme.
This scheme makes the home loan affordable as the subsidy provided on the interest component reduces the outflow on the home loan. Pradhan Mantri Awaz Yojana scheme has made it easier for all the lower economical classes to be able to afford a home and turn their dreams into reality.
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