Steps to Consider when Applying Home Loan under the PMAY Scheme

With the commitment to offer Housing for All by 31st March 2022, the Pradhan Mantri Awas Yojana scheme was launched by the Central Government in June 2015.

The initiate was taken by the Central Government of India to offer affordable housing solution to the urban poor of India.

If you want to know about the Pradhan Mantri Awas Yojana scheme and steps that you can take to apply for the home loan under the scheme, then this post is for you.

What is the Pradhan Mantri Awas Yojana Scheme?

PMAY scheme or the Pradhan Mantri Awas Yojana loan subsidy scheme is a credit linked subsidy scheme (CLSS) which has the provision to offer home loans at lower rates. The home loan interest rate that you can enjoy under the scheme is at 6.5%. The loan is available up to a tenor of 15 years and is stipulated to be used only for housing needs.

The Pradhan Mantri Awas Yojana scheme is put into practice by the Indian Central Government in a bid to promote better living of the citizens and pace economic growth.

The Government also has the plan to construct around 2 crore affordable homes all over India in more than 4000 towns with priorities given to first class 500 top cities. These houses are to be constructed using eco-friendly materials.

Anyone who is a citizen of India with some PMAY eligibility terms and conditions can apply to for this scheme irrespective of his/her religion, caste and creed.  

Women, widow, senior citizens and differently abled people are given priority in the home allocation, especially for the ground floor.

The Features of the Pradhan Mantri Awas Yojana Scheme

Here are the summarised features of the Pradhan Mantri Awas Yojana scheme in some points:

• The offered home loan interest rate subsidy under the Pradhan Mantri Awas Yojana scheme is at a rate of 6.5% for a duration of 15 years
• Differently abled people and senior citizens are to be offered the ground floor of the houses to be built under the PMAY scheme
• Only sustainable and eco-friendly technologies will be used for the construction of the homes
• The Pradhan Mantri Awas Yojana scheme has a three scheme with the first  scheme focussing on the housing projects under the class I 500 cities in India

Steps for Applying for Home Loans under the PMAY Scheme

The process of applying for the home loans under the PMAY scheme is simple and dead easy with an easy application:

Step 1 – Apply for a housing finance with any of the bank or non-banking finance company (NBFC) whoever you find is best and is offering the PMAY subsidy

Step 2 – Visit the official PMAY scheme and download the application form the subsidy scheme

Step 3 – Print the form, fill up the required fields with accurate information

Step 4 – submit the form with relevant documents to an office accepting these

Step 5 – If you are eligible then your application will be forwarded to the CNA

Step 6 – If you get the approval, the CAN will send the subsidy amount to the lender whom you have selected for the home loan

Step 7 – The subsidy amount will then be credited to your home loan account after reducing the total principal loan amount

If you are a woman and the only breadwinner of the family, the application gets first priority in the approval and disbursal of the subsidy amount to the bank.

The Bottom Line

Now that you are aware of the steps to apply for a home loan under the Pradhan Mantri Awas Yojana scheme, it will help you go ahead with the application with confidence.