If you have long been wishing to purchase or build your own home in the city of Ahmedabad, we are sure that you must have considered seeking a Home Loan. And why not? After all, the real estate prices in Ahmedabad are at an all-time high, and the only way one can plan to move into a house of their own is with the help of some financial assistance.
A Loan is a great way to procure a much required financial assistance for your dream home, particularly if you belong to a low or middle-income group.
Pradhan Mantri Awas Yojanais a Credit linked Subsidy Scheme by the government of India. The pilot scheme is based on a vision of “housing for all, by the year 2022” to financially assist and help the Economically Weaker Sections, the Low and Medium-Income Groups of the society, irrespective of their credit history, at subsidised interest rates.
Let us take a look at some of the crucial aspects of Pradhan Mantri Awas Yojana – Ahmedabad so that you can reap the benefits of this astounding housing scheme in the best possible way.
You are only entitled to the PMAY and its benefits, if you or any member of your family, do not own a pucca house in Ahmedabad or any other part of the nation. In this context – a ‘family’ comprises of a husband, his wife, and their unmarried children.
Besides, PMAY is available for only special sections of society. Let’s further learn about sections that are eligible to apply for PMAY:
Economically Weaker Sections identified under PMAY are Individuals with a household income of less than Rs. 3 Lakh and whose proposed house is less than 30 square metre in size. They eligible to avail a subsidy of up to 6.5% on the interest rate, for amount up to Rs. 6 Lakh, beyond which the regular interest rates will apply.
Low-Income Groups are the ones with a household income of Rs. 3 Lakh to Rs. 6 Lakh, and whose proposed house is 30 to 60 square feet in size. Similar to the case of EWS, individuals belonging to Low-Income Groups will be entitled to a subsidy of up to 6.5% on the interest rate, for a loan amount of up to Rs. 6 Lakh, after which they will have to bear regular interest rates.
Individuals with a household income of Rs. 6 Lakh to Rs. 12 Lakh, and whose proposed house is 160 square metre or less in size, qualify under Middle Income Group I. They are eligible to avail a subsidy of up to 4% on the interest rate, for amount up to Rs. 9 Lakh. No subsidy is offered for the loan amount over and above Rs. 9 Lakh.
Individuals with a household income lesser than Rs. 12 Lakh to Rs. 18 Lakh, and whose proposed house is 200 square metres in size or less, qualify under this category. For borrowers in MIG II category, the subsidy will be 3%, subject to a maximum loan amount of Rs. 12 lakh.
For the financial assistance received under the Pradhan Mantri Awas Yojana – Ahmedabad, the individual is free to do any of the following:
1. The tenure for a Housing Loan obtained under PMAY can last up to 20 years for people belonging to EWS and LIG. For people from Middle-Income Groups, the tenure can be extended to 30 years.
2. The borrower of a Housing Loan under PMAYis entitled to receive the subsidy payment upfront.
3. If an individual eligible under the PMAY has already constructed or purchased or extended a house or a flat with their own money, they are entitled to seek reimbursement for the same.
4. If an individual eligible under the PMAY has already procured a Home Loan, for the construction or purchase of a new house or flat, or for the extension of their place of residence, they are entitled to reap the benefits of this Housing Scheme.
With the easy availability of Home Loans, the subsidised interest rates, the freedom to use the loan amount and the other array of benefits that it offers, the Pradhan Mantri Awas Yojana is nothing short of a blessing for a common man in India. In order to support the government in its pursuit of providing housing for all, the leading banks of India are offering specialised loans under the scheme, making it even easier to get the assistance you need and deserve!
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.
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