Two years ago, I had a similar question, how to calculate PMAY subsidy. I researched about it and discovered that the net present value (NPV) of the interest subsidy amount can be used to calculate it. Scroll down to get the complete steps to calculate PMAY subsidy.
How is PMAY Subsidy Calculated?
As a house buyer, you must have heard about the PMAY Scheme. The Pradhan Mantri Awas Yojana (PMAY) is a government scheme in India that aims to provide affordable housing for all. I also found that the loan amount, annual family income, and loan term are used to determine the subsidy amount.
To calculate the PMAY subsidy, you must follow the below steps:
Check Your Eligibility
Both individuals and families meeting certain income requirements are eligible for this subsidy. Your eligibility for the PMAY subsidy depends on whether you fall into one of the below-mentioned beneficiary categories:
Economically Weaker Section (EWS),
Low Income Group (LIG), or
Middle Income Group (MIG)
Calculate the Subsidy Amount
Based on the interest subsidy rate that applies to your income category, the subsidy is computed.
Next, using a discount rate, the interest subsidy's NPV is determined. Generally, using the loan's amortisation schedule and a 9% discount rate, the NPV is computed.
The loan receives an upfront credit for the interest subsidy amount.
Alternatively, you can directly use an online PMAY subsidy calculator. To find out how much of a subsidy I was eligible for under the CLSS PMAY programme, I used an online PMAY calculator.
There, I just need to input my annual income, loan amount, subsidy rate, and loan tenure. The calculator automatically computed and displayed the result.
I hope this helps you get an idea of how to calculate subsidy under PMAY.
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How to Calculate PMAY Subsidy?
Hajay79
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2024-07-22T16:01:31+00:00 2024-07-22T16:01:32+00:00Comment
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