Income housebyers

The current COVID-19 pandemic compelled the Government of India to extend the deadline of various plans rolled out to benefit the citizens of the country. One such plan is the Pradhan Mantri Awas Yojana (PMAY) which is a subsidy scheme for affordable housing for all. This scheme will benefit both lower-income groups and also the middle-income group homebuyers.

If you are not aware of the benefits of the PMAY scheme for middle-income group homebuyers, then read further to learn more.

What is the New Improved PMAY CLSS Scheme?

The PMAY CLSS scheme for middle-income group buyers offers incentives for purchasing or constructing a house. The scheme for middle-income homebuyers was valid just for twelve months during the first phase. The government extended the scheme up to March 31, 2021, after it was found to be successful.

As per the scheme, a 4 percent interest subsidy is offered on PMAY home loans of about ₹9 lakh for a 20-year repayment tenure to the beneficiaries. This is for individuals in middle-income groups with income ranging from ₹6 lakh to ₹12 lakh.

Individuals in Middle-Income Group-II and having an annual income of ₹12-18 lakh are offered an interest subsidy of 3 percent over their loan.

Criteria

Middle Income Group I

Middle Income Group II

Income Range

6-12 lakh

12-18 lakh

Carpet Area

160 sq. m

200 sq. m

Loan Amount

9 lakh

12 lakh

Interest Subsidy Offered

4%

3%

Key Benefits of Housing Scheme

The major benefit of this scheme is the subsidy offered by the government on the purchase or construction of a house. In order to avail the scheme, you shouldn’t be a homeowner already. You are eligible for the scheme if and only if you don’t own any house.

The government classifies an individual in one of the three income groups.

  • Economically weaker section/low-income group

  • Middle-income group I &

  • Middle-income group II

For individuals falling under the EWS group, the interest rates are subsidized by 6.5 percent. For MIG I and MIG II it is 4% and 3% respectively.

Who all are eligible under PMAY scheme?

This scheme is aimed at providing housing to all. Those who already own a home or if any of their family members have a home registered under their name, then they would not be entitled to the benefits of PMAY scheme.

The family of the beneficiary should not own any pucca house to be eligible under the scheme. They should also not have availed any assistance from the Government of India under any housing scheme. A beneficiary family as per the definition under the scheme comprises of husband, wife, their unmarried daughters, and sons.

Any adult earning member can be treated as a separate household if they don’t own a pucca house in their name in any part of India. So, if the children, whether married or unmarried, residing with their parents in a house not owned by them can opt for PMAY scheme if they are earning.

Benefits Offered to Women

  • Housing loan for women is offered at 8.25 percent per annum

  • EMI on a housing loan of ₹1 lakh would be around ₹853

  • Interest is estimated on daily balance reduction

  • No pre-payment charges

Fund allocation for PMAY Home Loan Scheme

The union cabinet has set aside a fund of ₹60,000 crores under the PMAY scheme which aims to provide housing for all by 2022. The mission of the scheme is to build about 12 million housing units in urban regions.

Until now, around 68.7 lakh houses have been approved by the government under the PMAY scheme. Construction of about 13.5 lakh homes has already been completed and over 37 lakh houses are under various stages of construction.

The extension of the PMAY scheme deadline during the current pandemic has turned out to be a boon for homebuyers who were not aware of this scheme launched by the government. You still have time to enjoy the subsidy offered under the scheme if you are eligible.

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