Home Loan
How to apply for Home Loan subsidy (PMAY)? - 7 steps
Home Loan Subsidy PMAY was launched in June 2015 with the aim of providing housing for individuals living in urban areas by the end of 2022. Under this scheme, the government of India offers to assist agencies operating in states and Union Territories (UTs) in providing housing to eligible beneficiaries.
By benefiting from this scheme, the eligible beneficiaries can receive financial assistance in terms of subsidy on interest paid on home loans to buy, build, renovate or make extensions.
So, if you are looking to benefit from this scheme, read more and understand everything about the home loan subsidy PMAY scheme, including how to apply for PMAY.
Who can apply for Home Loan subsidy PMAY?
Before you start the application process for PMAY, you must know about the eligibility criteria of the scheme. There are many factors that define your home loan eligibility for the scheme. They are listed below:
- The PMAY scheme is applicable for housing loans only
- There are three categories, Economically Weaker Section (EWS), Low Income Group (LIG) and Middle-Income Groups I and II (MIG I and II), which are based on applicants’ income ranges. For example, if the applicant’s income exceeds the income range for MIG-II, i.e. more than Rs. 18 lakh p.a, they are not eligible for PMAY
- A female’s name should be on the property papers as either owner or co-owner. This can be surpassed only when there are no female members present in the family
- The scheme is only applicable to the purchase of a new house or for incremental housing
- The applicant must not have a pucca house anywhere in the country before applying for PMAY (except under Beneficiary-led individual house construction/enhancements (BLC))
- The applicant is not eligible for this scheme if they have benefited from any other housing scheme before
- Beneficiaries must belong to the listed areas, villages, cities, and towns as per the Census 2011
Why opt for Home Loan subsidy PMAY?
With the aim of providing financial funding for home buyers, PMAY offers many benefits to its beneficiaries. The government of India is also promoting women’s empowerment through PMAY by making it mandatory for females to be the owners or co-owners of the house.
Furthermore, your benefits of gaining a subsidy will vary depending on which income group you belong to. Here are the benefits of PMAY on the Home Loan interest rate
- A PMAY beneficiary will receive a significant amount of reduction to the payable interest over home loans.
- The subsidy received from the PMAY scheme is directly deposited into the beneficiaries’ bank accounts.
- Beneficiaries may also be eligible for tax deductions as per the Income Tax Act of 1961.
- Based on their eligibility, the beneficiaries can receive subsidies ranging from 3% to a maximum of 6.5% on the loan amount.
Subsidy benefits based on income groups:
| Income Groups | Annual Income Range | Subsidy (%) |
|---|---|---|
EWS | Up to Rs. 3 lakh | 6.5 |
LIG | Between Rs. 3 lakh and Rs. 6 lakh | 6.5 |
MIG I | Between Rs. 6 lakh and Rs. 12 lakh | 4 |
MIG II | Between Rs. 12 lakh and Rs. 18 lakh | 3 |
How to apply for Home Loan subsidy PMAY
Now that you have understood the eligibility criteria, the next step is to know about how to apply for PMAY. Here is an easy guide to applying for the PMAY subsidy on a housing loan online:
1. Visit the office website of PMAY.
2. Go to the “Menu” tab and click on “Citizen Assessment.”
3. Enter your Aadhaar number.
4. After Aadhaar verification, you will be redirected to the application form.
5. Fill out all the information, including personal details, income details, and bank account details.
6. Verify the information filled in and proceed with submission.
7. Click on “Save”, and you will receive a unique application number. You can use this for a home loan application.
Also Read:Types of Home Loans: 5 different kinds of Home Loans
Frequently Asked Questions (FAQs)
What is the PMAY scheme's maximum duration?
maximum duration of this scheme is 20 years.
Can I purchase a plot of land with a PMAY subsidy?
Buying a plot of land is not eligible for receiving a subsidy under the PMAY. It is only applicable for home loans.
If I already own a house, can I still apply for PMAY?
Yes, even if you have a home, you can still apply for a home loan subsidy PMAY, provided you fit the scheme and the home loan eligibility criteria.
Can existing homes be repaired or renovated using PMAY?
PMAY’s CLSS covers the repair and renovation of existing homes. The subsidy will be based on the income categories.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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