Home Loan and Finance: If you keep 30-year period, PMAY subsidy will be only for 20 years

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Published: June 6, 2018 12:45:43 AM

PMAY-Gramin is applicable for benefi-ciaries in rural areas for self-construction of pucca houses.

Home loan, home Finance, PMAY, PMAY MIG 2If you take 30-year home loan, PMAY subsidy will be only for 20-year period

If you take 30-year home loan, PMAY subsidy will be only for 20-year period

* I want to buy a flat and avail subsidy as per PMAY MIG 2 requirement. My family does not have any home registered in India. I plan to take a home loan of 30 years. Am I eligible for PMAY if I avail a loan of 30 years?
– R Bisht

Under PMAY, credit subsidy is available for a tenure of 20 years or the actual tenure of the loan, whichever is lower. You can avail a home loan of 30 years tenure, but the subsidy will be calculated only for a 20-year period. Individuals with an annual income of Rs 12, 00,001-18, 00,000 fall under the MIG II category and can avail 3% credit subsidy p.a. for a loan of up to Rs 12 lakh for 20 years. Additional loans beyond the subsidised loan amount can be provided by the lender at a non-subsidised rate. Lenders can sanction loans for a maximum 30 years provided the loan is repaid before the borrower completes 70 years.

* I had booked a flat with home loan and also applied for PMAY subsidy. The bank disbursed some amount to the builder, but I cancelled my booking and repaid the loan to the bank within one month of disbursement. Can I get PMAY subsidy for my next booking?
—Saurabh Bhaskar

If you had applied for a home loan and received the benefit of the interest subsidy, then you aren’t eligible. However, if you have not received the subsidy then you can avail the credit link subsidy provided you fulfil the eligibility criteria. EWS and LIG categories can avail credit subsidy of 6.5% for a loan of up to Rs 6 lakh. The MIG 1 category can avail credit subsidy of 4% p.a. for loan up to Rs 9 lakh. The MIG 2 category can avail credit subsidy of 3% p.a. for loan up to Rs 12 lakh.

* How can I get a loan under PMAY-G?
—A L Rao

PMAY-Gramin is applicable for benefi-ciaries in rural areas for self-construction of pucca houses. The benefit available is Rs 1.20 lakh in the plains and Rs 1.30 lakh in hilly areas. Optionally, the beneficiary would be provided a loan of up to Rs 70, 000 for house construction. In this scheme, the beneficiary list is made by the government and vetted through the Gram Sabha. The list is made basis housing deprivation parameters in SECC (2011) data, which is verified by Gram Sabhas. You can avail a home loan under PMAY-G by applying to your nearest dedicated state nodal bank which will conduct direct, electronic transfer to your bank account.

The writer is JMD and CEO, DHFL. Send your queries to fepersonalfinance@expressindia.com

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