Pradhan Mantri Awas Yojana – 10 FAQs You Should Know Before Apply
A.1 – A beneficiary is defined as:
- A family comprising of husband, wife and unmarried children
- Beneficiary should not own a pucca house either in their name or in the name of any member of their family in any part of India to receive central assistance under the Mission
- Meeting income criteria defined under the scheme
Q.4 – How will I receive the interest subsidy benefit under Pradhan Mantri Awas Yojana?
A.4 – The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.
Q.5 – Is there any loan amount limit on Pradhan Mantri Awas Yojana?
A.5 – No, there is no loan amount limit under this category of loans.
Q.6 – What are the income norms for EWS and LIG categories?
A.6 – The income norms for EWS/LIG categories are defined as follows:
- EWS households with an annual income up to Rs. 3 Lakh
- LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh
Q.8 – Do I have to give any additional documents to avail Pradhan Mantri Awas Yojana subsidy?
A.8 – No, there is no additional documents except a Declaration of not owning a pucca house.
Q.9 – What is the size of dwelling units under Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana?
A.9 – The Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component should be up to 30 sq. m. for EWS category and up to 60 sq. m. for LIG category. However, the beneficiary can construct a bigger house.
Q.10 – I have a small business, can I avail Home Loan under Pradhan Mantri Awas Yojana?
A.10 – Yes, you can avail this facility, if you qualify for the income criteria defined under this scheme.
Pradhan Mantri Awas Yojana is a government subsidy scheme for families buying their first house, though there is no upper Loan Amount and Tenure cap for the scheme, however the subsidy benefit would be available on the initial Rs. 6 Lakh. It would be computed at a rate of interest of 6.5% p.a on a maximum amount of Rs. 6 Lakh or the loan amount whichever is lower for 15 years tenure with discounting rate of 9%. For 6 Lakh the interest subsidy comes to around Rs. 2,20,000. Hence an upfront subsidy of Rs. 2,20,000 would be claimed by the bank from NHB and the same would be adjusted against the outstanding amount in the Loan Account. The loan outstanding would reduce and result in lower EMI of approximately Rs. 2,000.