Pradhan Mantri Awas Yojana (PMAY): Housing loan

 

(Updated on 07.05.2019) Pradhan Mantri Awas Yojana May 2019 – Details on Pradhan Mantri Awas Yojana (PMAY) Housing Scheme ✓ Eligibility ✓ Application Procedure✓Price✓Location✓Allotment Process✓Result Draw & more.

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Interest Subsidy for PMAY home loans Borrowers

New year is always about making new resolutions and turning our long awaited wishes into reality. To make your wish comes true, major banks have reduced their home loan interest rates to a large extent. Making it simple and easiest to take a home loan at the lowest interest rates, the citizens of India have ever experienced. To keep our Prime Minister’s vision of “Housing for All” alive in everyone’s heart, India’s largest financial institutions have slashed down their lending rates in the benefit of the larger section of the society.

As recently announced by our honourable prime minister, on the eve of new year, that under the Pradhan Mantri Awas Yojna there has been a 33% increase in the construction of houses across rural India. Now the poorest and the underprivileged will get an interest subsidy of 4% for a loan amount of Rs. 9 lakhs. Also home loan borrowers will get an interest subvention of 3% for home loans up to 12 lakhs.

You can be a beneficiary of Pradhan Mantri Awas Yojana if your Yearly Income is less than 6 lakhs and you don’t own a ‘PUCCA’ house in your name or in the name of any of your family member in any party of India. Individuals from Economically Weaker Section (EWS) & Low Income Group (LIG) category are eligible for PMAY Scheme and must be permanent resident of India.

You can include your spouse’s income or your children’s income to be eligible for PMAY, but in any case, the yearly income being clubbed together should not be above Rs. 6 lakhs. If your yearly income exceeds Rs. 6 lakhs then you are not at all eligible for the Scheme.

Let us analyses the new interest subvention as proposed through Pradhan Mantri Awas Yojna. Suppose, you have opt for a home loan amount of Rs. 20 lakhs at the interest rate of 8.6% from SBI for 20 years. Now, on this loan amount of Rs. 20 lakhs, you will get an interest subsidy of 4% on the loan amount of Rs. 9 lakhs out of the 20 lakhs loan amount. For the rest amount, you will get an interest subvention of 3% for next loan amount of 3 lakhs out of the 20 lakhs loan amount. The remaining 8 lakhs loan amount will be calculated at normal interest rate of 8.60%.

In simple terms, on a loan amount of 20 lakhs , you will get 4% interest subsidy (i.e. 8.60%-4%=4.60%) for the first 9 lakhs amount, 3% interest subsidy (8.60%-3%=5.60%) for the next 3 lakhs amount and the rest 8 lakhs amount will be calculated at 8.6%. Have a look at the table below

Interest Calculated @ 4.60% (8.60%-4%=4.60%) for loan amount of 9 lakhs out of 20 lakhs

Loan Amount(In Rs.)

Loan Tenure(In Yrs.)

Interest Rate(p.a.)

Monthly EMI(In Rs.)

Total Interest Outgo(In Rs.)

9,00,000

20

4.60%

5743

4,78,210

Interest Calculated @ 4.60% (8.60%-3%=5.60%) for loan amount of 3 lakhs out of 20 lakhs

Loan Amount(In Rs.)

Loan Tenure(In Yrs.)

Interest Rate(p.a.)

Monthly EMI(Rs)

Total Interest Outgo(In Rs.)

3,00,000

20

5.60%

2081

1,99,354

Interest Calculated @ 8.60% for loan amount of 8 lakhs out of 20 lakhs

Loan Amount(In Rs.)

Loan Tenure(In Yrs.)

Interest Rate(p.a.)

Monthly EMI(Rs)

Total Interest Outgo(In Rs.)

8,00,000

20

8.60%

6,993

8,78,392

Total Interest Outgo & Monthly EMI for 20 years

Amount

Loan Tenure

Monthly EMI (Rs.)

Total Interest Outgo

20,00,000

20

5743+2081+6993=14,817

4,78,210+1,99,354+8,78,392= 15,55,956

Above is just an example from State Bank Of India, interest rates differ from bank to bank and major banks provides home loan in compliance with PMAY scheme. Home Loans taken in 2017 will carry the advantage of interest subsidy only, as declared by the government. Explore our website Loansninsurances.com for a wide range of home loans and other related products.

Pradhan Mantri Awas Yojna is an aspiring housing scheme under which the government aims to create affordable housing units for urban poor and also for rural people. It’s government of India’s significant step towards providing a shelter for every citizen of India within their financial limit.

The Yojana would benefit people irrespective of their caste, creed and religion. A project being undertaken to strengthen the dreams of the poor.

Primary Aim

  • Providing affordable houses to Indian Citizens.

  • To ensure that 2 crore houses are built across nation’s length and breadth.

  • Homes for Urban slum dwellers and people from economically-weaker sections and low income groups and also for rural people.

  • Constructing homes within a span of 7 years (2015-2022).

Implementation of Pradhan Mantri Awas Yojna

The implementation of Pradhan Mantri Awas Yojna will be carried out in 3 sustainable phases:

  • Phase 1: Under the phase one of Pradhan Mantri Awas Yojana, housing units will be created in the selected 100 cities in the period from April 2015 to March 2017.

  • Phase 2: The next phase of PM Awas Yojna will cover about 200 cities or more and will take place from April 2017 to March 2019.

  • Phase 3: The final phase of Pradhan Mantri Awas yojana Scheme, housing units will be developed in the remaining cities between April 2019 to March 2022.

Under the Pradhan Mantri Awas Yojna , the allotment of houses will be done on the name of the female head of the household or in the joint name of women and his husband.

Who will be the Main Beneficiary?

The Beneficiaries of Pradhan Mantri Awas Yojna are as follows:

  • Women including widows.

  • Trans gender families.

  • People belonging to Scheduled Casts (SC).

  • People belonging to Scheduled Tribes (ST).

  • Urban homeless families belonging to the economically weaker section (EWS) and lower income group (LIG) categories of the society.

Pradhan Mantri Awas Yojna : Main Features

  • Government will provide interest subsidy of 6.5 percent on housing loan availed by the beneficiaries for 15 years.

  • A central assistance will be provided to the beneficiaries from Rs. 1 lakh to Rs. 2.30 lakh under the different components.

  • The houses under Pradhan Mantri Awas Yojna would be allotted, preferably, to the female member of the family. In general, Preference would be given to the female applicants.

  • While allotting ground ground floors in any apartment under PMAY, preference would be given to differently-abled and aged people.

  • Under the fourth category of subsidy, 35 percent of dwelling units of the affordable projects under the scheme will be earmarked for EWS category.

The Four components of the subsidy/loan under the scheme

Component 1– Central Grant of ₹1 Lakh(Average) would be provided to the beneficiary.

Component 2– Subsidy of 6.50 % will be provided to EWS & LIG via credit linked subsidy scheme.

Component 3– Central Assistance of ₹1.50 lakh will be provided to each beneficiary for promoting housing stock for urban poor, provided 35 percent of dwelling units of the projects proposed are earmarked for EWS category.

Component 4– Central Assistance of ₹1.50 lakhs will be provided to eligible urban poor, who can build new house or undertake improvements of existing houses.

One of the most prominent verticals of PMAY is Credit Linked Subsidy Scheme (CLSS). The scheme would benefit families/households earning upto Rs 6 lakh per annum. Leveraging this scheme, you can avail the Home Loans at subsidized interest rates, which are much below the market rate.

What are the major benefits of PMAY Credit Linked Subsidy Scheme (CLSS)?

Suppose you have taken a home loan of Rs 6 lakhs at the existing home loan interest rates, say at 9.50% for a period of 20 years, the monthly EMI that you have pay is Rs. 6,265. On the other hand, if you avail PMAY scheme, you will get home loan at subsidized interest rates. So, if you avail a home loan of Rs. 6 lakhs at subsidized interest rate of 6.5%, then you have to pay a lower EMI of Rs. 5,227 per month. You save up to Rs. 1000 per month, which amounts to Rs. 12,000 per annum.

Another benefit is, if your loan amount is more than 6 lakhs, banks will levy the same normal home loan interest rate on the excess amount & not the subsidized interest rate. Suppose, you have taken a home loan amounting to Rs. 10 lakhs; the subsidized interest rate, i.e. 6.50%, will be applicable to Rs. 6 lakhs only and the remaining amount Rs. 4 lakhs will fall under the regime of normal home loan at market rates. The government’s subsidy of 1 lakh can go up to 2.3 lakh depending on the loan amount and loan tenure.

This has been formulated keeping the lower income groups in mind and especially for rehabilitating those who are currently slum dwellers.

Location of the Land

The location of your property should fall under 4041 Statutory towns (meaning all places with a corporation, municipality, cantonment board).

All nationalized banks and public sector banks are linked with Pradhan Mantri Awas Yojna to make Pradhan Mantri’s mission of “Housing for all” a grand success by 2022, celebrating the 75th Independence Day of Our Mother India.

The Telangana government had proposed allocating 45,217 houses for urban poor in 27 cities involving 73 projects with a total cost of Rs. 3,716.40 crore. The Telangana State Housing Corporation is to take up the projects for two bedroom houses along with development of basic infrastructure. Out of 73 projects, 52 belong to Greater Hyderabad Municipal Corporation and 21 projects to 18 urban local bodies.

As part of the three missions, the government will look to create 2 crore houses by 2022 by providing a central grant of Rs 1 lakh to Rs 2.3 lakh per house by way of a 6.5 percent interest subvention scheme; look to create 100 smart cities through a Rs 48,000 crore initiative; and push for urban infrastructure upgrade for 500 cities in a Rs 50,000 crore scheme.

Twelve states – UP, Tamil Nadu, Maharashtra, MP, Gujarat, Karnataka, Andhra Pradesh, Rajasthan, Punjab, Haryana, Telangana and Chhattisgarh would lead the urban transformation piloted by the Modi-led government.

Of these 12 states, eight are under the rule of BJP or its allies accounting for about half of smart cities to be developed and 225 of 476 AMRUT cities identified so far. UTs are also the responsibility of central government.

The Minister for Urban Development Venkaiah Naidu, and the Minister of State for Urban Development Babul Supriyo, the Chief Minister of Maharashtra Devendra Fadnavis, the Chief Minister of Haryana Manohar Lal Khattar, and the Deputy Chief Minister of Jammu and Kashmir, Nirmal Kumar Singh were present on the occasion.

UP leads the pack as it has been given the opportunity to nominate 13 cities to be developed as smart cities, while 54 cities in the state have been identified under AMRUT scheme.

Tamil Nadu comes second with the allocation of 12 smart cities and 33 AMRUT cities.

While Maharashtra has been alloted 10 cities to nominate under the smart city project, Gujarat and Karnataka are eligible to develop six cities each.

Banks In compliance with Pradhan Mantri Awas Yojna(PMAY)

Pradhan Mantri Awas Yojna which is also known as Housing For All is the most significant scheme which will be completed in the year 2022. The scheme aims to provide a stable house to all those citizens of India who do not own a ‘pucca’ house in all the 4041 statutory towns as identified by the Ministry of Housing and Urban Poverty Alleviation or as included in 2011 census.

In order to envisage the dream vision of our honourable Prime Minister, major banks have come up with their unique home loan schemes in compliance with the guidelines of Pradhan Mantri Awas Yojna. Click to know and avail the best home loans from the list given below:

State Bank of India Canara Bank HDFC Bank Axis Bank
ICICI Home Loan PNB Home Loan BOB Home Loan BOI Home Loan
LIC-HFL Home Loan Corporation Bank Home Loan IDBI Bank Home Loan Tata Capital Home Loan

Interest Subsidy on loan amount can be availed up to 15 years from the date of loan disbursement, after that, the outstanding loan amount will fall under the bracket of normal home loan interest rates. Interest subsidy of 6.5% can be availed by all beneficiaries of Pradhan Mantri Awas Yojna.

Latest News on PMAY

1) The Central Government had approved an action plan to cover 42,804 families in the state’s 28 cities under the PMAY (Urban) scheme. In the first phase 24,221 families would be benefited under the Pradhan Mantri Awas Yojana (PMAY) scheme. The action plan for another 19 cities is also being prepared and it would be soon sent to the central government for approval. People residing in slums in Faridabad would also be allotted houses under the JNNURM (Jawaharlal Nehru National Urban Renewal Mission). In the starting, 100 houses would be repaired and allotted to those residing in slums and small clusters.

2) In Pradhan Mantri Awas Yojana, State Government withdrawn a clearance given to three sites fro low cost housing projects in Mumbai Metropolitan Region (MMR), as it was revealed that these plots were already reserved for other purposes. The MHADA, a nodal agency for the project, had identified 14 sites for houses under PMAY and state and central level coordination committees had given a clearance for the same. However, later MHADA realised that, three of these sites in MMR are reserved for some other purposes, so they can’t be used for building affordable homes.

3) 10,000 more houses will be constructed under PMAY. Under the housing-for-all schemes the government of Maharashtra, Till 2022, aims at constructing 19 lakh affordable homes. The senior officials from MHADA are of the view that nearly two lakh homes have been approved under PMAY. TO further boost the economy 10,000 more dwellings will be prepared.

Pradhan Mantri Awas Yojana User Searches/Trends May 2019

User searches for PMAY Housing For All up +150% in past week – 25.01.2017
User searches for Pradhan Mantri Awas Yojana Application Form 2016 up +100% in past week – 22.02.2017
User searches for Pradhanmantri Awas Yojna up +50% in past week – 25.03.2017
User searches for PMAY Gramin up +120% in past week – 18.04.2017
User searches for PMAY In Hindi up +120% in past week – 28.05.2017
User searches for PMAY Housing For All up +60% in past week – 30.06.2017

16 thoughts on “Pradhan Mantri Awas Yojana (PMAY): Housing loan

  1. DINESH SINGH

    HI I M DINESH SINGH pradhan mantri awas yojna se jude rahne ke liy mujhe kya krna padega or mujhe awas ghar lene k liy kya krna padega ,or mujhe pata hai ki ghar har kise ko jarurat hai lekin un garibo ko de jo kirayae k makan me rahte hai ya jhopad patti me rahte hi,,mai bhi unhi garibo me se 1 hu jo 10 saal se kiray k makan me rahta hu ,,meri sarkar se vinamra nivedan hai ki mujhe bhi awas dilane me meri madadt kre,,,,modi sarkar se meri hath jod kar vinamra nivedan hai ki meri bato ko dhyan de or mera sahyog kare mai bhi bharat wasi hu or bharat ka hi nagrik hu or mujhe batai ki application form kaha se milega or kya karna hoga,,,,jai hind

  2. saii kummar

    hello sir iam an self employed i need a homeloan in hyderabad to need a good govt help for the middle class family so plz provide me a loan that i will thankfull to modiji govt plz help plz help for ur vision of smart citi we are proud to construct our house wih the help of government i request soon u will give me a reply thank u for bjp govt helps a poor peoples

  3. bobby

    pradhan mantri awas yojna se jude rahne ke liy mujhe kya krna padega or mujhe awas ghar lene k liy kya krna padega ,or mujhe pata hai ki ghar har kise ko jarurat hai lekin un garibo ko de jo kirayae k makan me rahte hai ya jhopad patti me rahte hi,,mai bhi unhi garibo me se 1 hu jo 10 saal se kiray k makan me rahta hu ,,meri sarkar se vinamra nivedan hai ki mujhe bhi awas dilane me meri madadt kre,,,,modi sarkar se meri hath jod kar vinamra nivedan hai ki meri bato ko dhyan de or mera sahyog kare mai bhi bharat wasi hu or bharat ka hi nagrik hu or mujhe batai ki application form kaha se milega or kya karna hoga,,,,jai hind

  4. Abhishek Kumar Chandravanshi

    Ish pmay yojna me kaise aply kar sakta hu , mai aur meri family ghar ke lekar bahut paresan hai aur aarthik tanki se jujh raha hu , plz guide me

  5. bheeshmadatta kewat

    pradhan mantri awas yojna se jude rahne ke liy mujhe kya krna padega or mujhe awas ghar lene k liy kya krna padega ,or mujhe pata hai ki ghar har kise ko jarurat hai lekin un garibo ko de jo kirayae k makan me rahte hai ya jhopad patti me rahte hi,,mai bhi unhi garibo me se 1 hu jo 10 saal se kiray k makan me rahta hu ,,meri sarkar se vinamra nivedan hai ki mujhe bhi awas dilane me meri madadt kre,,,jin logo k pas bangla hai ya mahel hai unhi ko wapas dena achhi bat nahi hai ,,,modi sarkar se meri hath jod kar vinamra nivedan hai ki meri bato ko dhyan de or mera sahyog kare mai bhi bharat wasi hu or bharat ka hi nagrik hu,,,,jai hind

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