The Pradhan Mantri Awas Yojana (PMAY) has made the cost of homeownership affordable and within reach for Indian homes by millions. The government-sponsored program provides an interest subsidy on home loans, allowing eligible borrowers to pay much lower EMIs. But although the scheme is offered on a mass scale, no one knows how to calculate their home loan subsidy amount.
Owing to online calculators and tools, knowing your subsidy entitlements under PMAY 2.0 is easier. This article provides a comprehensive guide to calculating your subsidy value, ascertaining your eligibility for PMAY, and staying away from mistakes that would disqualify you.
Understanding PMAY 2.0: Income-Based Categories
PMAY 2.0 is divided according to family income per year:
- EWS (Economically Weaker Section): ₹3 lakh or less
- LIG (Low-Income Group): ₹3 lakh to ₹6 lakh
- MIG-I (Middle-Income Group I): ₹6 lakh to ₹12 lakh
- MIG-II (Middle-Income Group II): ₹12 lakh to ₹18 lakh
Each category is eligible for differential interest subsidy rates:
- EWS/LIG: 6.5% interest subsidy on the loan amount up to ₹6 lakh
- MIG-I: 4% interest subsidy on the loan amount up to ₹9 lakh
- MIG-II: 3% interest subsidy on the loan amount up to ₹12 lakh
The maximum term used for calculation is 20 years. The subsidy amount is given in advance to your loan account, thereby reducing the principal and hence your EMIs.
Step-by-Step Procedure to Calculate PMAY Home Loan Subsidy Online
The following is the simple method through which you can calculate your home loan subsidy amount:
Step 1: Determine Your Income Category
Your subsidy depends on your category under PMAY 2.0. Initially, ascertain your annual household income and refer to the corresponding category (EWS, LIG, MIG-I, or MIG-II).
Step 2: Find Out Your Eligibility for PMAY
Before putting into action any subsidy calculator, ensure the following:
- You or your family members should not possess a pucca house anywhere in India.
- You should not have already received benefits under any housing scheme.
- The woman member should be an individual owner or co-owner of the property (exceptions).
- You must have Aadhaar cards for all the family members who are adults.
- The property must be in a sanctioned area with a valid title and documents.
All these are deciding factors for whether you are eligible for PMAY and a prerequisite before going ahead with the calculation.
Step 3: Apply the PMAY Subsidy Calculator
All government and major housing finance organization websites contain a PMAY calculator. To use one:
- Insert your income to determine the subsidy class.
- Insert the loan amount and term (maximum 20 years).
- The calculator will use the applicable interest subvention rate.
You will receive an estimate of the amount of subsidy that can be credited in advance to reduce your initial loan.
For instance, a borrower in the LIG category with a loan of ₹6 lakh at an interest rate of 6.5% for 20 years can earn a subsidy of around ₹2.67 lakh, lowering the EMI significantly.
Step 4: Recalculate if Required
If your salary or loan amount has changed, you can recalculate using the calculator again to get a revised estimate. Keep your information up to date and precise.
Avoiding Common Pitfalls in Applying for PMAY Subsidy
Even after your subsidy has been decided, there are a few common errors which can lead to rejection or hold-up:
- Not registering on the PMAY portal: This needs to be done before or at the same time as applying for a loan.
- Leaving out female ownership: In most categories, a woman owner is compulsory.
- Submission of incomplete documents: Documents like Aadhaar, income proof, and property title need to be complete and accurate.
- Ignoring post-approval norms: Following geo-tagging rules, building time schedules, and timely EMI payment is necessary to uphold the subsidy.
Meeting all these requirements can enhance your chances of successful subsidy credit.
How Grihum Housing Finance Benefits PMAY Applicants?
Though online calculators give you a reasonable estimate, it will still be tough for first-timers to register, document, and comply. Tailored specifically for first-time applicants, Grihum Housing Finance offers step-by-step support in choosing the right PMAY category, accurately approximating the home loan subsidy, ensuring women’s ownership compliance, and registering on the portal.
With their expert team, you are assured that all the paperwork is complete, eligibility is determined, and no step is missed in the process, thereby assuring quicker approval and a successful claim for the subsidy.
Conclusion
Calculating your PMAY 2.0 home loan subsidy amount will come a great distance in your home loan journey. An online calculator, determining your PMAY eligibility, and avoiding common pitfalls will aid you in enjoying low EMIs and early repayment of your loan.
However, to best use the scheme, proactive planning and expert assistance are necessary. Grihum Housing Finance provides that sort of assistance to help you understand your subsidy entitlement, navigate the application process, and realize affordable homeownership.
