Home Finance: You can’t get PMAY subsidy if you are demolishing your old house and building a new one

By: | Published: July 25, 2018 1:33 AM

My brother lives in a 30-year-old house which he bought 10 years ago with his wife as co-owner and co-borrower.

finance, money, cashThe PMAY subsidy is applicable for first-time homebuyers who do not own a pucca house. (Reuters)

My brother lives in a 30-year-old house which he bought 10 years ago with his wife as co-owner and co-borrower. The loan has been paid off as per schedule. The house is unsafe to live and the architect has advised for new construction rather than renovation to fix issues. Will he get PMAY subsidy?

—Hiren Shah

The PMAY subsidy is applicable for first-time homebuyers who do not own a pucca house. In this case, your brother already owns a pucca house. Also, the subsidy is applicable only for major renovation, repair work and up gradation from kutcha to pucca house. It is not applicable for total demolition and reconstruction of the house.

I plan to buy a flat whose area is as per PMAY MIG 2 norms and so is my income. I plan to take a home loan for 30 years. Will I be eligible for PMAY?

—Debashis Sahu

Yes, you can avail a 30-year home loan subject to maximum age limit of 70 years and type of loan, as per the lender’s policy. However, PMAY subsidy for MIG 2 is for a loan tenure of 20 years or lower. If you opt for a home loan tenure of 30 years, subsidy amount will be calculated for the 20-year period for which you can avail subsidy for a loan amount of up to Rs 12 lakh at the rate of 3% per annum.

What are the eligible conditions for loan under PMAY-G scheme?

—Sushil Sharma

Subsidy under PMAY-Gramin is for upgrading existing home or for constructing a new home in rural areas. `1.20 lakh is provided to every unit in the plains and `75,000-1.30 lakh to those in hilly and difficult terrains. A beneficiary list is made under this scheme on the basis of housing deprivation parameters in SECC (2011) data, which is verified by Gram Sabhas. Beneficiaries should not own a pucca house.

My dad has a house in his name. I am single and earn `4 lakh a year. Can I get benefit of PMAY scheme?

—Sujeet Garade

Yes, you can apply as an independent beneficiary to avail the PMAY scheme. Beneficiaries under EWS and LIG categories can avail credit subsidy of 6.5% for a loan up to `6 lakh. The MIG 1 category can avail credit subsidy of 4% for loan amount up to `9 lakh. The MIG 2 category can avail credit subsidy of 3% p a, for loan up to `12 lakh. Additional loans beyond the subsidy loan amount can be provided by the lender.

The writer is JMD & CEO, DHFL. Send your queries to fepersonal finance@expressindia.com

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