How to Apply for PM Awas Yojana Loan?

Ownership of homes is one of the primary needs for many families. If you have not purchased a home of your own till now or are planning to buy one, then you can avail the PM Awas Yojana loan. It is one of the best home loan in India, which is also CLSS (Credit Linked Subsidy Scheme). Most of the people belonging to different segments of society, including MIG (Middle Income Group) I and II, EWS (Economically Weaker Sections), and LIG (Low Income Groups), can apply for this finance.

You should avail the PM Awas Yojana loan as the Government will offer subsidies on the interest rates of the home loans and make purchasing a house affordable even for the people belonging to the economically weaker segments.

Who Are Eligible to Apply for the PM Awas Yojana Loan?

To receive subsidy from the PM Awas Yojana, you have to buy or construct a home in a town or city. You can check the list of towns or cities from the Government's official website. You or any of your family members should not have any permanently built house anywhere in this country. You or your family members also should not be receiving any assistance from any Central Government schemes. 

Advantages of PM Awas Yojana Loan

This best home loan in India provides a subsidy on the interest rates of the house loan as per particular conditions. The advantages of PM awas yojana depends on the people and the segments they belong to. In whatever category you fall into, the Government will offer the interest subsidy for 20 years only.

• Category I

If the total household income of all the family members, including you, is more than 6 lakh but below 12 lakh annually, then you fall into the MIG I category. The house you will be constructing or buying should be within the carpet area of 160 sq meters. The government will provide a subsidy on the interest rates of up to 9% on a loan of 9 lakh INR.

• Category II

If your total annual household income falls between 3 and 6 lakh INR, then you will fall into the EWS and LIG categories. The house you will be constructing or buying should be within the carpet area of 60 sq meters. A female have be the co-owner or owner of that home. The government will provide a subsidy on the interest rates of up to 6.5% on a loan of 6 lakh INR.

• Category III

If your total annual household income falls between 12 and 18 lakh INR, then you will fall into the MIG II categorY. The house you will be constructing or buying should be within the carpet area of 200 sq meters. The government will provide a subsidy on the interest rates of up to 3% on a loan of 12 lakh INR.

What Is the Working Principle of the PM Awas Yojana Loan?

Let's give you an example. You have applied for a home loan of 9 lakh INR at 9% interest rates for 20 years. If you are under MIG I category, because of the 4% interest subsidy, you have to pay an effective 5% interest rate. Thus, according to the PM Awas Yojana, you will get a subsidy on your home loan for 2, 35, 068 lakh INR.

FAQ

What is the maximum amount of loan I can get from PM Awas Yojana?

In this best home loan in India, you can get a finance of up to 25 lakh INR for a home value of up to 35 lakh INR. You will get a subsidy if your loan amount falls under this vertical.

Final Verdict

You can claim the PM Awas Yojana loan if the government has approved your home loan on or after 1st January 2017. You do not have to claim in-person subsidy. The financial institution will take care of this on your behalf. You just have to file a declaration to confirm your eligibility criteria for the loan. If your loan gets approved, the financial institution will fulfill all the formalities and claim the subsidies on your behalf. Once the Government approves the loan subsidy, it will automatically be credited to your account. So, we can say that PM Awas Yojana is the best home loan in India for the first time home buyers.