We get one life, and we get to live this life only once. Hence living it with class and dignity is very crucial. Doing what makes you happy and living as you see fit for yourself, is how you should value your life.
So, if living in luxury is what you would want for yourself, go ahead work hard towards achieving your dream, because, now, the government will help make things easier for you.
Government of India has introduced the Pradhan Mantri Awas Yojana (PMAY) in June 2015, which is designed to offer affordable housing to the people. The Credit-Linked Subsidy Scheme (CLSS) under PMAY provides home loan to first-time buyers at subsidised interest rate. They do this by providing interest subsidy from 3% to 6.5%.
PMAY is available for the following group of people:
1. Economical Weaker Section (EWS): Buyers with maximum annual income of Rs 3 lakh fall under this category and get an interest subsidy of 6.5%. The loan tenure for this category is a maximum of 20 years. And the interest subsidy amount that can be availed under this category is Rs 2.6 lakhs.
2. Lower Income Group (LIG): Buyers having annual income between Rs 3 lakh and Rs 6 lakh belong to this category and get an interest subsidy of 6.5%. The loan tenure for this section is also a maximum of 20 years. And the interest subsidy amount that can be enjoyed under this section is Rs 2.6 lakhs.
3. Middle Income Group (MIG): the Middle income is sub-categorised into two groups:
- Middle Income Group-1 (MIG-1): Buyers with annual income between Rs 6 lakh and Rs 12 lakh belong to this category. Those in the MIG-1 category get an interest subsidy of 4%. The loan tenure for this section is a maximum of 20 years. And the interest subsidy amount that can be enjoyed under this section Rs 2.35 lakhs.
- Middle Income Group-1 (MIG-1): Buyers having annual income between Rs 12 lakh and Rs 18 lakh fall under this category, the interest subsidy for which is 3%. The loan tenure for this section is also a maximum of 20 years. And the interest subsidy amount that can be enjoyed under this section Rs 2.3 lakhs.
Calculating EMIs
Getting an estimate is very important when you are taking such a huge investment decision. This will help you plan your future expenses.
If you want to get an estimate of your monthly EMIs based on the home loan interest rate and home loan tenure, you can take help from home loan EMI calculator. They calculate the equated monthly instalment efficiently and give you a fair understanding of how you will repay the loan.
Non-banking financial companies (NBFCs) provide online home loan EMI calculator. Such NBFCs typically provide you easy-to-get pre-approved offers for home loan, personal loan, EMI finance on different products and other financial services.
Does this simplify the procedure for availing funding, but also makes it possible to save in time. All you have to do is talk about some essential information and have a look at your pre-approved offer.
Process to avail PMAY subsidy
To avail subsidy under PMAY, you need to submit a request—along with the required documents—to your lender, who, in turn, will forward it to the National Housing Bank for its clearance. To apply for the subsidy, you’ll need to:
- Fill up a self declaration form
- Submit the form to your lender
- Make sure all documents you submit are in order
- Since it is mandatory to submit Aadhaar details to avail any government subsidy, share your Aadhaar details with your lender
Just make sure that you have provided all the documents properly and meticulously to avoid any confusion and get ready to step into your dream home!
