The Central Government’s flagship program PMAY was an initiative to ensure affordable housing options for all. With a decadal slum growth rate of 34%, such households are predicted to go up to 18 million over the next couple of years. Pradhan Mantri Awas Yojana – a unique housing scheme, aims to cover about 2 million non-slum urban poor households.

Subsequently, the overall housing shortage that will be addressed via this programme by 2022 is estimated to be about 20 million. Considering such circumstances, it is undoubted that this scheme is a sure-fire way to attain affordable housing.

While the goal of ‘housing for all’ continues with its stride to provide homes for –

  • Economically Weaker Section,
  • Low Income Group and
  • MIG I and II (under PMAY CLSS scheme),

-this scheme plays a crucial role in making housing loans affordable as well.

Impact of PMAY on home loans

This unique housing scheme has a substantial role to play when it comes to housing loans. Previously, rising prices in the real estate sector was a definite challenge for potential home buyers. However, with the introduction of PMAY CLSS scheme, individuals now have access to considerable funds at a subsidised rate of interest.

Following this, repayment became affordable due to pocket-friendly EMIs. This is exceptionally beneficial when it comes to first-time homebuyers with a limited idea about the prospective cost of the loan and the strain that it might exert on their budget. Thus, other Government initiatives like RERA have been launched to protect the interest of first-time home buyers. It initiative brought in the much-needed transparency in the real estate sector.

Besides, for long-term advances like housing loans, subsidised rate of interest has a considerable impact on the total cost of the loan. Under such circumstances, availing Home Loan from reputed lenders like Bajaj Finserv that comply with PMAY CLSS is beneficial. Such secured advances come with multiple borrower-friendly features apart from the lowered rate of interest –

  • Easy balance transfer facility
  • Top up loans
  • A flexible tenor ranging up to 20 years
  • Zero charges on foreclosure and part prepayment
  • Convenient management of loan account via a customer portal

One can easily avail the benefits of such loans by meeting a few eligibility criteria and furnishing some essential documents. Additionally, the application process to avail the credit has been kept simple, considering the convenience of prospective borrowers.

Bajaj Finserv also provides you pre-approved offers on several financial products that include both secured advances like home loans, and unsecured credits like business loans, personal loans, etc. These offers ease the application process to avail such financial assistance. You can take a look at your pre-approved offer by providing only a few details including your name and contact number.

Pradhan Mantri Awas Yojana scheme continues with its implementation of new processes to ensure easier disbursal of benefits. Adding on to this, the required eligibility criteria to apply for this scheme has been kept to a bare minimum for the convenience of potential applicants.

PMAY Eligibility Criteria

1. EWS (Economically Weaker Section) and LIG (Low Income Group)

Individuals with a monthly income of between Rs. 3,00,000 to Rs. 6,00,000 falls under the category of EWS and LIG, respectively. Beneficiaries under this category can claim a maximum of 6.5% subsidy on the interest rates for loans up to Rs. 6 Lakh. Thus, they can claim a maximum of Rs. 2, 67,000 subsidies on their loan amount considering that the maximum carpet area of the purchased property is 30-60 square metres.

Previously, LIG and EWS were the only beneficiaries under the PMAY scheme; however, with the introduction of CLSS, MIG I and MIG II too are now liable to avail the benefits of the Pradhan Mantri Awas Yojana scheme.

2. MIG I (Middle Income Group I)

Individuals with an income of Rs. 6 Lakh to Rs. 12 Lakh fall under the MIG I category and are liable to claim a maximum 4% subsidy on the interest rates for loans of up to Rs. 9 Lakh for a tenor up to 240 months. In case the carpet area of the purchased property is within 160 square metres, beneficiaries can avail up to Rs. 2, 35,000 subsidy.

3. MIG II (Middle Income Group II)

Those with an income of Rs. 12 Lakh to Rs. 18 Lakh fall under the category of MIG II. Such beneficiaries can claim a maximum of 3% subsidy on a loan amount of up to Rs. 12 Lakh for a tenor of up to 20 years. However, availing such subsidies requires one to ensure that the carpet area of their purchased property lies within 200 square metres.

Taking into consideration such host of benefits and the subsequent impact on one’s annual savings, availing home loans that comply by the Pradhan Mantri Awas Yojana scheme is a mandate. One can easily avail the benefits of this scheme by following the hassle-free application process. However, while choosing lenders to avail a home loan, they must conduct a quick survey of the market and compare the available options.

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