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Housing Subsidy

  • Housing Subsidy

    Under the Pradhan Mantri Awas Yojana (PMAY), the central government has offered Indian citizens a subsidy of INR upto2.67 lacs to qualifying families. Here are a few questions and answers about the scheme.

    What is the eligibility criteria for the PMAY subsidy?

    1. The purchaser and their family should not have another house under their name.
    2. Annual household income must not exceed INR 18 lacs. A “Household” is defined as husband, a wife and any unmarried sons and/or unmarried daughters.
    3. The house should be purchased in a joint registration of the husband and wife, or just the name of the wife. However, if there is no adult female in the household, the house may be registered in the name of a male member.
    4. Carpet area of the house purchased should be less than 60 sq. mtrs. for income not exceeding RS 6 lacs p.a, 90 sq.mtrs. for income not exceeding 9 lacs p.a and 110 sq.mtrs. for income not exceeding 18 lacs p.a
    5. The scheme can be used to purchase only one unit per family.
    6. The subsidy will always be paid via the provider of the housing loan. i.e from banks/HFC’s
    7. Home loan should be availed for a period of 20 years in order to avail a subsidy up to 2.67 lacs. If a loan is availed for a lesser period then the subsidy amount will be proportionately reduced.


    What is the list of documents required to avail the subsidy?

    1. Undertaking from the buyer in the given format
    2. Aadhar card and PAN card
    3. Any other documents as required by the Bank/Financial Institution

    What is the list of documents required to avail a Home Loan?

    1. Income Proof for eligibility of loan
    2. Identity Proof
    3. Address Proof
    4. A Bank statement of the Last 6 months
    5. Any other documents as required by the Bank/Financial Institution


    I am Single, can I still benefit from PMAY?

    Yes, you may apply for the PMAY subsidy if you are single, however there are different criteria. Unmarried men can make use of the PMAY subsidy if their mother is the co-applicant. In case, there is no surviving adult woman in the family, they may still apply. Unmarried woman are also eligible to apply if they are an independent earning member of the family.


    Can I still get PMAY if I am not applying for a LOAN?

    In order to get PMAY subsidy you must successfully qualify for a home loan.


    Will I get the subsidy directly from the government?

    The entire subsidy will be given upfront to the housing finance company/Bank by the Government Agency. Thereafter the Bank/HFC will credit the same in borrower’s account. This will result in a reduction in the housing loan amount and consequently the EMI will also reduce.


    Am I eligible for PMAY if I have a house in my native place or village?

    If the roof of your village house is not made of concrete, it is not considered a ‘pucca’ house, thereby qualifying you for the housing subsidy.


    How can I apply for PMAY?

    STEP 1: First you book a flat and apply for a housing loan
    STEP 2: Bank sanctions your loan
    STEP 3: Registration of the agreement
    STEP 4: Your housing finance company / bank submits the claim of the subsidy to National Housing Bank/HUDCO
    STEP 5: National Housing Bank transfers the amount to your bank
    STEP 6: Bank deposits the subsidy to your loan account
    STEP 7: Loan reduces to the extent of the subsidy received and the reduced EMI is set


    How long does it take to received subsidy from the government?

    The bank should receive the subsidy in a minimum of 3 months post the application.


    Is PMAY applicable to widows or divorcees?

    Yes, both widows and divorcees can apply.


    What is the age limit to avail PMAY?

    There is no age limit, as long as you are eligible for a Home Loan.


    What happens if I do not qualify for the PMAY?

    If you do not qualify for PMAY, you may still qualify for a housing loan. Xrbia has partnerships with over 20 housing finance companies who have created flexible loan products so that no prospect is ever refused a loan.