New Delhi. If you are planning to take a home loan to buy or build your house, then the Central Government's Pradhan Mantri Awas Yojana-Urban 2.0 can be helpful for you. Under this scheme, there is a provision to give subsidy up to a maximum of ₹ 1.80 lakh on home loan interest to eligible families. Its objective is to make it easier for economically weaker and middle income families to buy their own home.
Which families can get the benefit of the scheme?
Under the interest subsidy scheme of the scheme, those families whose annual household income is up to ₹ 9 lakh can get benefits. Additionally, the price of the house should not exceed ₹35 lakh and the home loan limit is capped at ₹25 lakh. The carpet area of the house should also be up to 120 square meters.
How much relief will be given on home loan interest?
Under this scheme, there is a provision of 4 percent interest subsidy on the initial ₹ 8 lakh of home loan of eligible beneficiaries. According to the prescribed rules, this benefit can be given for a maximum period of 12 years. The maximum limit of subsidy is ₹1.80 lakh.
The thing to note is that it is not necessary for every beneficiary to get the entire amount of ₹ 1.80 lakh. The actual benefit will be decided as per the loan amount, tenure and scheme terms. For example, even if you take a home loan of ₹20 lakh, the subsidy will not be available on the entire loan but only within the prescribed limit.
The beneficiaries are divided into three categories:
EWS: Annual family income up to ₹3 lakh.
LIG: Annual family income ₹3 lakh to ₹6 lakh.
MIG: Annual family income ₹6 lakh to ₹9 lakh.
However, merely meeting the income limit does not ensure receipt of subsidy. The applicant will also have to fulfill other conditions of the scheme.
how to apply?
To avail the benefit of interest subsidy under Pradhan Mantri Awas Yojana-Urban 2.0, the applicant will have to complete the application process by visiting the official portal of the scheme. It includes steps like checking your eligibility, filling personal and home loan related information and submitting required documents. The application is scrutinized as per the prescribed provisions of the concerned bank or financial institution and the scheme. The subsidy process proceeds only after eligibility is confirmed.