Follow This Guide to Get Subsidy for Housing Loan Under PM Awas Yojana Scheme

The finance ministry of India proposes to provide 1.95 Crore houses to the urban and rural citizens of the country by the financial year 2020 to 2022 under the Pradhan Mantri Awas Yojana (PMAY). The ministry also reduced the time taken for construction from 314 days to 114 days to make the property available to the buyers faster.

The PM Awas Yojana came into effect from June 2015 and aims to provide affordable housing to all by 2022 via a financial aid of up to Rs. 2 Trillion from the central Government. The scheme targets the economically weaker sections, lower-income groups, and middle-income individuals and provides subsidized home loans to the citizens belonging to the same.

Eligibility Criteria For PM Awas Yojana Scheme 

You need to be within the income group to qualify under the home loan subsidy scheme, as mentioned below. To avail a loan your annual income should be-

- Up to Rs. 3 Lakh to fall under the economically weaker sections (EWS).

- Between Rs. 3 Lakh and Rs. 6 Lakh to be under the lower-income group category (LIG).

- Within the range of Rs. 6 Lakh and Rs. 12 Lakh to be selected under the middle-income group I (MIG-I).

- Between Rs. 12 Lakh and Rs. 18 Lakh to avail PMAY scheme subsidy under the middle-income group II (MIG-II) category.

Families have to belong to these groups if they want to enjoy the key benefits of the Pradhan Mantri Awas Yojana (PMAY).

Net carpet area

If you fall under the mentioned income group, you can avail a net carpet usage area of:

- EWS: up to 30 sq. m

- LIG: up to 60 sq. m

- MIG-I: up to 160 sq. m

- MIG-II: up to 200 sq. m

Subsidy

Falling under the mentioned income group, you can avail a Pradhan Mantri home loan subsidy, as mentioned below. 

- EWS: up of 6.5%

- LIG: up to 6.5%

- MIG-I: up to 4%

- MIG-II: up to 3%

Loan amount

The PMAY eases your way to becoming a homeowner by providing you home loans up to:

- EWS: up to Rs. 6 Lakh

- LIG: up to Rs. 6 Lakh

- MIG-I: up to Rs. 9 Lakh

- MIG-II: up to Rs. 12 Lakh

You can apply for the home loan subsidy scheme by filling an online application form on the official website of PMAY.

With home loans, you also avail of home loan income tax benefits. You can enjoy exemptions of up to Rs. 1.5 Lakh against the home loan principal amount under Section 80C of the Income Tax Act.

You can claim deductions of up to Rs. 2 Lakh against the interest amount payable under Section 24(b) of the Income Tax Act.

The 2019 Budget has also added the new Section 80EEA. Under this section, beneficiaries of affordable housing can claim an additional income tax benefit of up to Rs. 1.5 Lakh on the loan interest paid. Benefits under Section 80EEA will only be able until March 2020.

To qualify for the benefit under this section, the stamp duty of the house must not increase Rs. 45 Lakh. Additionally, the carpet area must not exceed 60 sq. m in cities like Mumbai, NCR, Kolkata, Bengaluru, Chennai, and Hyderabad and 90 sq. m in other cities.