Here’s all you wanted to ask about PM Awas Yojana and home loans

Published: December 11, 2018 1:20:59 AM

Carpet area of the house under these schemes should up to 30 sq. mts. for EWS beneficiaries and up to 60 sq. mts. for LIG beneficiaries.

There is no restriction on the closure of bank loan if PMAY subsidy is availed of

By Chaitali Dutta

No minimum home loan tenure to avail PMAY subsidy
I took a loan of Rs 28 lakh from HDFC Bank. I received PMAY subsidy also. Now bank says that I have to continue the loan for minimum of 15 years (original tenure was 20 years) else subsidy will be reversed. It this true?
– Meet Doshi

No, there is no restriction on the closure of bank loan if PMAY subsidy is availed of. As per PMAY norms, maximum loan tenure is 20 years but there is no minimum period limit to continue the home loan. As per the rule, there will not be any pre-closure charges. Additionally, there is nothing like a loan under PMAY. It’s a measure to enable eligible Indian citizen to buy house providing subsidy on interest payable on the home loan.

Is it possible to prepay a floating rate home loan without any penalty which I had taken in 2006?
—Somesh Dua

As per RBI circular to all banks and NBFCs in 2014, no prepayment penalty is to be charged to individual borrowers of floating rate term home loans. This was effective immediately and was applicable to all home loans, existing as well as future home loans.

– I am 23 years old and unmarried. I am the owner of the house for which I am seeking PMAY subsidy. I have income of Rs 4,00,000 and my parents’ combined income is Rs 7,50,000. Will the income of my parents be considered for subsidy? Under which of the three categories of the scheme should I apply?
—Kuldeep Sharma

We assume (condition of availing PMAY) that none of the family members has a house in their name and this is the first house. If we consider the combined household income of Rs 11.50 lakh, you will fall under the category of MIG-I. First, you must not own a pucca house either in your own name or in the name of any member of your family in any part of India. Here, family means husband, wife, unmarried sons and/or unmarried daughters. Second, carpet area of the house should be up to 120 sq. mts. (1292 sq ft) for MIG-I beneficiaries. However, if we consider only your income, you will fall under EWS/LIG scheme. Here in addition to above first condition, one adult female membership is mandatory in the property ownership. Third, location of the property should fall under all statutory towns as per 2011 census and their adjacent planning area. Finally, carpet area of the house under these schemes should up to 30 sq. mts. for EWS beneficiaries and up to 60 sq. mts. for LIG beneficiaries.

The writer is founder, Azuke Personal Finance Advisory. Send your queries to fepersonalfinance@expressindia.com

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