Under the Pradhan Mantri Awas Yojana (PMAY), you get a subsidy on the interest rate for your home loan. To get the subsidy, you and your family members (husband, wife and unmarried children) shouldn’t own a house. If you are married, your spouse and you are eligible for a common home loan subsidy. If you have availed of a benefit under a government housing scheme earlier, you are ineligible.
The scheme classifies applicants into economically weaker sections (EWS) and lower income groups (LIG), with an income of up to Rs 6 lakh an annum for a household, and middle income group (Rs 6 lakh-Rs 18 lakh annual income).
The carpet area of the home should not be more than 60-200 square metre, depending on the income group. The interest rate subsidy ranges between 3% and 6.50% for a loan amount of Rs 6 lakh to Rs 12 lakh. For instance, EWS and LIG get an interest rate subsidy of up to 6.50% for a maximum loan amount of Rs 6 lakh. You don’t get interest rate subsidy on the entire loan amount. The subsidy is available for a maximum loan tenure of 20 years. There is no limit on the loan amount or the size of the property. However, interest rate subsidy is available only up to a limit.
After the loan is sanctioned, your details are verified. Once it is cleared, you are eligible for the subsidy. After the loan is disbursed, the financial institution claims the subsidy on your behalf. Once cleared, the amount is sent to the financial institution, and is then credited to your home loan account. After it gets credited, your EMIs dip accordingly. To avail of the subsidy under EWS and LIG category, woman ownership is mandatory. For middle-income group (MIG), submitting Aadhaar number is mandatory. If you have previously availed of a benefit under a housing scheme of the government, you will not be eligible.