Pradhan Mantri Awas Yojana Home Loan Subsidy Scheme – There is a great news for home seekers, the Central Government has announced more subsidy in home loan interest rates under the Pradhan Mantri Awas Yojana. The Central Government has launched the Pradhan Mantri Awas Yojana Home Loan Subsidy Scheme for providing home loans to the people at low-interest rates.
Under the Pradhan Mantri Awas Yojana Home Loan Subsidy Scheme, the amount of home loan increased from 6 lakh to 12 lakh and subsidy at the rate of interest would be 4%.
Pradhan Mantri Awas Yojana Home Loan Subsidy Scheme Interest Rates
|Subsidies Explained||Earlier Scheme (2015) – CLSS for EWS/LIG||Revised Scheme (2017) – CLSS for MIG|
|Loan Amount||Up to Rs. 6 Lakh||Up to Rs. 9 Lakh||Up to Rs. 12 Lakh|
|Eligibility Criteria||EWS (Annual income of Up to Rs. 3 Lakh) and LIG (Income of up to Rs. 6 Lakh per annum). Women to be the co-owner along with the beneficiary.||MIG 1 – Up to Rs. 12 Lakh per annum||MIG 2 – Up to Rs. 18 Lakh per annum|
|Subsidy Calculation for a loan tenure of up to 15 years||6.5%||4%||3%|
|Subsidy Amount||Rs. 2.2 Lakh for a loan of 6 lakh||Rs. 2.35 Lakh for a loan of Rs 9 Lakh||Rs. 2.3 Lakh for a loan of Rs. 12 Lakh|
|Interest Rates and Subsidy|
|Loan Amount||Rs. 12 Lakh||Rs. 9 Lakh or More||Rs. 12 Lakh or More|
|Amount Eligible for Subsidy||Rs. 6 Lakh||Rs. 9 Lakh||Rs. 12 Lakh|
|Subsidy Amount||2.2 Lakh||2.35 Lakh||2.3 Lakh|
With the increase in the loan amount under the Pradhan Mantri Awas Yojana, there will also be a considerable decrease in monthly installments. The central government will provide 4% subsidy instead of 6.5% subsidy on loans upto Rs 6 lakh and giving 3% subsidy on home loan up to Rs 12 lakh. Home loan under PMAY can be taken for a maximum period of 20 years. The government has also included two new middle income groups under this scheme.
At this time, home loans are available from banks and non-banking financial companies (NBFCs) at approximately 9% interest rates. After interest disbursement of 4%, effective interest rate goes up to 5%, which is significantly reduced in EMI.
Pradhan Mantri Awas Yojana Home Loan Subsidy Scheme – Subsidy Calculation
For example, a person takes a loan of 9 lakh rupees for 15 years, and at a lower interest rate of 4%, his savings are Rs 2,011, so that his monthly installment goes down from Rs 9,128 to Rs 7,117. And likewise, with a 3% lower interest on loan of 12 lakh rupees, there is a monthly savings of Rs 2,044 in installments.
Pradhan Mantri Awas Yojana Online application for urban is being invited through CSC’s and official website pmaymis.gov.in.
The government has also announced to give up to 3% discount on the interest of home loan upto Rs 2 lakh under PMAY Gramin.
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