Things First-time Home Buyers Should Know About PMAY
Are you a first-time homebuyer? Then, make sure to check the benefits offered by the Pradhan Mantri Awas Yojana. The scheme launched by the government of India is aimed at providing pucca house for all Indians and providing subsidies on home loans. With the introduction of CLSS (Credit Linked Subsidy Scheme) under the Pradhan Mantri Awas Yojana, owning a home has become more affordable to the:
- EWS or the Economically Weaker Section
- LIG or the Low-Income Group
- MIG or the Mid-Income Group
What are the Eligibility Requirements?
Applicants are divided into various categories based on their income levels. They are:
- EWS – Includes households with annual incomes of lesser than Rs. 3 lakhs.
- LIG – Includes households with annual incomes between Rs. 3 lakhs and Rs. 6 lakhs.
- MIG 1 – Includes households with annual incomes between Rs. 6 lakhs and Rs. 12 lakhs.
- MIG 2 – Includes households with annual incomes between Rs. 12 lakhs and Rs. 18 lakhs.
- Minorities including ST/SC/OBC and women belonging to EWS and LIG categories.
Apart from belonging to any one of these categories, there are other eligibility requirements like:
- Applicant and his/her family (includes spouse, children) should not own a home in any part of India.
- The family of the applicant should not have received benefits from any other housing schemes offered by the government of India.
- Married couples can jointly own the home, but there is just one subsidy for both husband and wife.
Only the applicants who meet the above eligibility requirements would get home loans at subsidised rates.
What are the Benefits offered by the Pradhan Mantri Awas Yojana for first-time Home Buyers?
Apart from the reduction in GST rates and other tax benefits, home buyers who qualify for the Pradhan Mantri Awas Yojana can avail the following deductions:
- Up to Rs. 2 lakhs in home loan interests
- Up to Rs. 1.5 lakhs in home loan principals
- Additionally, if the value of the home is lesser than Rs. 50 lakhs and you take a home loan for lesser than Rs. 35 lakhs, you are eligible for an additional deduction of up to Rs. 50,000.
Make sure to Compare Lenders
While the Pradhan Mantri Awas Yojana makes it easy for first-time homebuyers to purchase their dream home, due diligence by home loan borrowers is a must. Make sure that you do your research about the various lenders – NBFCs (non-banking financial corporations) and the banks to find out which lender has the best offer. Are you a first-time homebuyer? Then, make sure to check the benefits offered by the Pradhan Mantri Awas Yojana. The scheme launched by the government of India is aimed at providing pucca house for all Indians and providing subsidies on home loans. HDFC brings you pre-approved offers for private loans, home loan, business loans and a number of different money merchandise. Not solely will this change the method of availing funding, however additionally helps you save on time. All you have got to try and do is share some basic details and cross-check you’re pre-approved provide. Apart from the interest rate, you must also consider other important factors like foreclosure charges, processing fees, disbursement time and method, etc.