Save lakhs on your home loan with these government schemes
What's the story
Owning a home is a cherished dream for millions of Indians, and to make this dream a reality, the government offers several subsidy schemes.
Understanding and availing these schemes can save you lakhs of rupees on your home loan.
So, we created a step-by-step guide on how to apply for and benefit from these subsidies. Read on.
Step 1
Understand Pradhan Mantri Awas Yojana (PMAY)
The Pradhan Mantri Awas Yojana (PMAY) provides interest subsidies on home loans for both urban and rural residents.
Eligibility is based on household income falling within Economically Weaker Section (EWS), Low Income Group (LIG), or Middle Income Group (MIG) categories.
Subsidies vary between three% and 6.5%, allowing for savings of up to ₹2.67 lakh over the loan's duration.
Step 2
Check your eligibility criteria
Before you hit apply, make sure you tick all the boxes for eligibility!
For PMAY, that means no pucca house in any family member's name anywhere in India and no central assistance already taken under any housing scheme from the Government of India.
You need to have Aadhaar number, it's compulsory for MIG beneficiaries.
A little homework upfront saves a lot of headaches later!
Step 3
Apply through lending institutions
You can apply for these subsidies through any of the banks and non-banking financial companies that are part of the scheme.
When you apply for a home loan, you simply need to indicate that you want to take advantage of the PMAY subsidy.
The lending institution will handle the rest! They'll process your application, submit it to the National Housing Bank or Housing and Urban Development Corporation for approval.
Step 4
Keep required documents handy
Before you start the application process, make sure you have all the necessary documents on hand.
These include proofs of identity (like Aadhaar or PAN card), proofs of income (such as salary slips or tax returns), property documents, and an affidavit stating that no family member owns a pucca house in India.
Having everything ready will make the application process much smoother.