The Government of India has targeted housing for all by 2022 under Pradhan Mantri Awas Yojana.
In our country there are millions of people who dream to have a shelter over their head and many dream to have their own house. The main objective of Pradhan Mantri Awas Yojana is to provide houses to people who are first time buyers with subsidy. But how to get subsidy on home loan? I will take it up in this answer along with a few other details on Pradhan Mantri Awas Yojana.
Who is eligible for subsidy on home loan under PMAY
The subsidies for home loan are divided into three categories by the Government of India
For economically weaker section of the society
Applicants with a family annual income of upto Rs. 3 lakh are eligible for subsidy. Under this scheme the interest rate on home loans will be 6.50% p.a. The tenure of the loan payment is 15 years and the maximum subsidy amount will be Rs.2.20 lakh.
For low income group
People with annual family income of upto Rs. 3 lakhs to Rs. 6 lakhs fall in this category. Under LIG group, the interest rate is 6.50% p.a. with the maximum subsidy amount going up to Rs. 2.76 lakhs. The payment of home loan tenure is 20 years.
For medium income group 1
The applicant whose annual income is between Rs 6 Lakh to 12 Lakh fall under this category. The applicant under this category can avail maximum 9 lakh of home loan.
For medium income group 2
Applicants whose annual income is between Rs.12 lakhs and Rs. 18 lakhs fall in this category. Under this category a person can take a maximum home loan amounting to Rs. 9 lakhs and the subsidy will be given for up to Rs. 2.35 lakhs.
How to get subsidy on home loan
Eligible candidates can directly apply for a subsidy home loan under CLSS or with a prime lending institution.
Carry the relevant document and loan application for home subsidy loan to banks or the financial institution, where you will approach for loan reimbursement.
These are important key points that you must know about how to get subsidy on home loan.
Pradhan Mantri Awas Yojana came in place by the Government of India to provide housing for all by 2022 as in India many people still live under settlements in the name of home. To remove this barrier under PMAY people can avail subsidy home loans at a low interest rate. Now the question arises how to get subsidy on home loan.New Rule Under PMAY
From April 2021 the people who fall under the medium income group or the people whose annual income is more than Rs. 6 Lakh per annum will not receive any benefits under PMAY subsidy home loan.
People who come under EWS and LIG can still avail the benefits of housing subsidy till March 31, 2022.
Once you reach the home page go to a citizen assessment option.
Then under assessment option click on apply online
Then go to credit link subsidy scheme (CLSS) option
Then you will be redirected to a new window, there you can check your eligibility criteria.
Once you are certain that you are eligible, check out the list of financial institutions that offer CLSS.
Apply with one of them and proceed with the home loan subsidy procedure as per you eligibility and income bracket.
The financial institution will ask for income proof, personal details, property details, loan application details, etc.
After careful verification, the application will be approved and the subsidy shall be transferred.
Mandatory Rules of PMAY
The application of PMAY will be registered in the name of the head of the family.
Many people also ask “ how can I get PMAY subsidy on my existing home loan”, well if you are also among those , then let me tell you that you are not eligible for this subsidy.
A person who already owns a pucca house is not eligible to avail the benefits of PMAY.
Also the benefits of this subsidy will be given only to those people who are buying a home for the first time.
A few years back, I read in an article that every Indian would have a pucca house by the year 2022. This was announced as part of the "Housing for All - Pradhan Mantri Awas Yojana" initiative. However, I wasn't sure whether a home loan subsidy is available or not for ladies. I thus looked up the eligibility requirements for PMAY subsidy online. I found that yes, it is possible to get a subsidy for ladies.
Subsidy on Home Loan by Government 2023
Women are given the chance to meet their dreams of becoming homeowners by getting financial support in the form of subsidised loan amounts or lower interest rates. This allows them to establish a sense of stability for themselves and their family. You can get a subsidy on home loan for ladies provided that you fit into one of the following categories:
LIG (Low Income Group) and EWS (Economically Weaker Section)
Middle Income Groups MIG-I and
MIG-II (Middle Income Group 2)
To find out the detailed requirements and the maximum amount you can receive in subsidies as per your categories, you must read Pranjal Saini's response.
How to Apply for Home Loan Subsidy Online?
Go to the Pradhan Mantri Awas Yojana official website.
Log in and select the appropriate category from the "Citizen Assessment" menu.
I was not well aware of how can I get subsidy on home loan so I asked my neighbour, an HDFC bank employee for help. They are well aware of the loan aspects and provide relevant details. I learned that the subsidy does not have to be claimed by the borrower. Usually, the loan provider takes care of it. But in case you feel you are not getting the subsidy, you can apply for it both online or offline.
How to Get Subsidy for Home Loan Online?
There are certain steps to follow on how to get subsidy of home loan. Here is what you need to do:
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How to get subsidy on home loan?
Swaiti Agarwala
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April 26, 2021
2021-04-26T14:41:54+00:00 2023-10-25T10:48:04+00:00Comment
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Home Loan
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