The central government launched a scheme in June 2015 known as Pradhan Mantri Awas Yojna (PMAY) which aims to provide homes to all the people of LIG (lower income group), MIG-I (middle-income group) and MIG-II. Prime Minister Housing Scheme is implemented on various financial and non-financial institutions which provide loan at an affordable interest rate.
Eligibility Criteria to Avail a Loan Under PMAY Scheme:
•The beneficiary should not own a home in any part of the country
•In the property ownership, it is mandatory to have one adult female membership
•Candidate must age between 22 years to 70 years
•Applicant must be a resident citizen of India
Key Features of the Scheme:
•Upfront interest subsidy will benefit the candidate on principal outstanding
•Aadhar number of the borrower’s family is mandatory for the middle-income group category
•Interest subsidy will be available for a maximum loan tenure of 20 to 25 years or the loan tenure availed by the applicant whichever is lower
•There is no negotiation on the loan amount or on the cost of the property.
•The NPV (Net Present Value) of the interest subsidy will be calculated at a discount rate of 9.2 %.
Individuals who belong to MIG-I category can get a loan amount up to Rs.9 lakhs with the interest subsidy of 4 percent and individuals who belong to MIG-II category can get a loan amount up to Rs.12 lakhs with the interest subsidy of 3 lakhs.
Additional Read: Pradhan Mantri Awas Yojana: Features, Benefits, And Eligibility
