Why Do You Need To Apply For The Jan Awas Home Loans Today?

By Author: Mayur
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The Jan Awas Home Loansscheme has been initiated with an aim to enable every Indian to own his personal house. This aim is in coordination with the ‘Housing for all by 2022’ scheme initiated by the Government of India. The Jan Awas Home Loans scheme has been introduced exclusively for individuals who fall underthe Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group (MIG) 1 and 2. The Jan Awas Home Loansscheme comes with the following features:

1.The borrowers from EWS and the LIG category can avail the home loan of up to Rs. 25 lakh, whereas the MIG 1 and 2 categories can avail it for up to 1 Rs. 40 lakh (the figures include the insurance amount).

2.The tenure of the loan can be range between 1 to 30 years. However it cannot be extended beyond the age of the borrower’s retirement.

3.It offers a subsidy that is available for purchasing a new home, or for the purpose of extension/construction for the EWS as well as the LIG category.

4.Following is the classification for the interest rate subsidies(credit linked) available for the borrower:

•EWS and LIG ...
... category: 6.50% p.a. for loans amounting up to Rs. 6 lakh. The time period can be 20 years or less if the tenure of the loan is lower.

•MIG 1 category: 4% p.a. for loans amounting up to Rs. 9 lakh. The time period can be 20 years or less if the tenure of the loan is lower.

•MIG 2 category: 3% p.a. for loans amounting up to Rs. 12 lakh. The time period can be 20 years or less if the tenure of the loan is lower.

5.One of the benefits of Jan Awas home loanis thatno processing fee is levied on the loan. Other fees, however, would be as applicable.

6.You can repay the loan by Electronic Clearing Service (ECS) by instructing your financial institueor by providing Post Dated Cheques issued from your salary/savings account.

7.You will be eligible for tax benefits on both the principal and the interest component of the home loan.

8.An individual can apply for this loan with a co – applicant to enhance the overall loan amount.

Before applying, ensure that you check the Jan Awas home loans eligibility criteria:

•You need to be a first time buyer

•You should have not availed any other government benefit/subsidy for housing under the Pradhan Mantri Awas Yojana scheme

•Female ownership of the property is mandatory for the EWS and LCG groups. However, if there is no female member in the family, it can be owned by a man. This condition does not apply to the MIG 1 and 2 categories.

•at the time of applying for the loan, you should not be owning any other property in your or your family member’s name.

•For the MIG category, this scheme is not applicable on improvement and renovation loans.

Mayur Sheitty is an experienced writer concerning the finance industry. His articles help in informing his readers of the Jan Awas home loans eligibility and the home loan process.