If nothing at all, Bollywood did teach my mother how to be melodramatic in the midst of her matrimonial arguments with my father. I swear she’s a pro at making my father apologise to her on his knees, by passing a few theatrical monologues. As for me, what Bollywood taught me, is the basic amenities rule. This rule got implanted in my head when I was very little, and has stayed with me ever since.
Roti, Kapda Aur Makaan!
For me, roti is similar to a large cheese pizza with a side serving of vanilla milkshake, whereas, kapda is more or less a closet full of beautiful, glamorous clothes. At this point, I would like to thank the Lord for seeing me as an employed citizen of our great nation. After all, money is important for kinds of stuff.
Talking about Makaan, I am trying my best to get there. I have already saved up a lot of money for the down payment. Hopefully, by the end of 2020, I will move into my own Home Sweet Home.
The very thought of owning a Home brings a huge smile to my face and a glowing halo over my head.
Moving on, if you’re reading this blog, and looking to buy a house, this New Year’s, I believe that you’re lucky and persistent to have saved up enough money for the same. Because this blog is probably one of the most advantageous, for my home-buying audience; that I have ever written.
Are you thinking of buying a house under PMAY?
Do you know what PMAY is?
Pradhan Mantri Awas Yojana (PMAY) Scheme
The basic concept of this scheme is, “Housing for all”.
The government launched this initiative in the year 2015, with a motive of launching 20 million affordable houses for the urban poor, by the year 2022. Recently, the government introduced another eligibility category, which can avail housing under this scheme.
The Middle Income Group (MIG).
Further, MIG is divided into 2 separate categories, as well:
1. (MIG) – I
2. (MIG) – II
|MIG Category||Annual Household Income|
|(MIG) – I||₹6,00,001 – ₹12,00,000|
|(MIG) – II||₹12,00,001 – ₹18,00,001|
Therefore, anyone earning between ₹6,00,000 – ₹18,00,000 can avail the benefits of subsidized loans for housing.
Exactly, who is Eligible to avail this Scheme? (A Closer Look)
The PMAY rule speaks, “The beneficiary family should not own a pucca house and the beneficiary family should not have availed of central assistance under any housing scheme from Government of India.”
Who is the beneficiary family, you ask? Well, the wife, husband, son and the daughter. Henceforth, if these people already live in a house owned by the man/woman of the house; none of them are eligible for a house under PMAY.
Don’t stop reading just yet! There’s a catch in the story.
If you’re an employed citizen, like me, you will be classified as a separate household. It doesn’t matter that you already live in a beautiful 2 BHK flat in Noida that is owned by your father. What matters is that you shouldn’t be the owner of one of those gorgeous flats in Noida or in any other part of the country. Moral of the story: You can buy a property in Greater Noida (or wherever else you want), rather conveniently, because you are eligible to avail PMAY scheme.
Similarly, if you’re a married couple, living in a rented studio apartment in Noida and your parents own a home in Rajasthan, for instance, then yes, you will be treated as a separate household. You are eligible for PMAY initiative.
The Main Features and Benefits
1. The Subsidy
The individuals under MIG – I group will get 4% interest subsidy on a loan amount up to Rs 9 lakh. The individuals under MIG – II group will get a 3% subsidy on a loan amount up to Rs 12 lakh. Obviously, the lenders can provide additional money on loan. But that additional amount is going to come to you at a non-subsidised rate.
2. Carpet Area
Under PMAY, the area of the house that must be looked at is the carpet area. In June 2018, the government started to get aggressive about advancing Affordable housing. Hence, the Ministry of Housing & Urban Affairs, permitted the revision of the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) under Pradhan Mantri Awas Yojana (Urban), for MIG I from “up to 120 square metre” to be increased to “up to 160 square metre” and, for MIG II from “up to 150 square metre” to “up to 200 square metre”.
3. Loan Tenure
The maximum tenure of home loans acquired under PMAY is 20 years, for both of categories of MIG.
4. A Few More Rules before you Borrow the Money
Do you like one of those 2 BHK flats in Greater Noida that is out in the market for resale purposes? Don’t worry, you can easily get a loan for resale property as well. If anything, you can get a loan under PMAY if you’re planning to construct a house of your own, as well.
Now, let me tell you about another catch. If you already own a home, and still want to avail housing through PMAY, then it’s very well possible.
Oh yes, the government has explained that the Mission (Housing for All by 2022) also provides for incremental housing to the existing ‘pucca’ house under the CLSS component. So, there’s no chance of a home loan provider declining a candidate seeking a home loan for the addition of a room, kitchen etc to the existing lodgings, on the ground that the candidate already possesses a pucca house.
From where can you get the Subsidized Loan?
This one is quite easy.
You can avail PMAY associated loan through any primary lending institutions such as scheduled commercial banks, housing finance companies, Regional Rural Banks s), State Cooperative Banks, Urban Cooperative Banks, Small Finance Banks, Non-Banking Financial Company etc.