Everything You Must Know About Affordable Housing Loan

By Author: Ashvani Mishra
Total Articles: 1
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“Every single person, regardless of his financial background, deserves to own a home of his own”- with this thought the government of India introduced the concept of affordable housing “Pradhan Mantri Aawas Yojana (PMAY)- Housing For All” to provide a low cost housing option for those who would otherwise not be able to afford a home. Affordable housing caters to the following class of people:-

1) Economically Weaker Segments (EWS) - EWS households are defined as households having an annual income up-to Rs.3,00,000/-

2) Lower Income Group (LIG) segment- LIG households are defined as households having an annual income between Rs.3,00,001/- to Rs.6,00,000/-.

3) Middle Income Group (MIG) segment – MIG I households are defined as households having an annual income between Rs. 6,00,001/- to Rs. 12,00,000/- & MIG II households are defined as households having an annual income between Rs. 12,00,001/- to Rs. 18,00,000-.

Who Are Eligible

1) The beneficiary household should be the first time buyer of the house.

2) The beneficiary should not own a pucca house in his name nor ...
... in the joint name with family.

3) The beneficiary must meet the specified income criteria as per the various categories in the scheme.

4) The beneficiary family should not have availed of central assistance under any housing scheme from Government of India. (A beneficiary family means husband, wife, unmarried sons and/or unmarried daughters).

5) Children irrespective of their marital status if are the earning members, will be treated as a separate household are eligible provided they do not own any other house on their name.

6) The ownership of the house should either be in the name of the female member of a household or in the joint ownership with wife. (Applicable only for EWS and LIG segments only).

7) The carpet area of the house should be:-
a) 30 Sqm for EWS beneficiaries.
b) 60 Sqm for LIG beneficiaries.
c) 160 Sqm for MIG – I beneficiaries & 200 Sqm for MIG – II beneficiaries.

Interest Rates Subsidy

Under this concept the home loan interest subsidy can be availed by individuals under the Credit Linked Subsidy Scheme (CLSS). In CLSS the central government offers interest subsidy to the applicants:-

1) For EWS & LIG interest subsidy is provided for loans up-to 6lacs (maximum subsidy amount of 2.67 lakh) at a rate of 6.50% during the actual tenure of the home loan or for a period of 20 years.

2) For MIG I interest subsidy is provided for loans up-to 9 lakh (maximum subsidy amount of 2.35 lakh) at the rate of 4% for the maximum loan tenure of 20years.

3) For MIG II interest subsidy is provided for loans up-to 12 lakh (maximum subsidy amount of 2.30 lakh) at the rate of 3% for the maximum loan tenure of 20years.

Validity of the Scheme

1) For EWS & LIG – 31/03/2022.

2) For MIG I – 31/03/2020.

3) For MIG II – 31/03/2020.

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Ashvani Mishra - founder of Loanfasttrack - Mumbai based company specializing in loan industry offering multiple loan products of Home Loan, Mortgage Loan. Business Loan, Car Loan & Personal Loan.He has considerably vast knowledge in the field of mortgage and home loan industry. She has successfully written more than 100 blogs on finance and on loan industry.