Key Benefits offered by PMAY - Home Loan Stories

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Everyone needs a house to live in, but it's the support and encouragement which gives an impetus to build the home of our dreams. And this thought is rightly translated into reality by 'Pradhan Mantri Awas Yojana.' The ambition of this initiative is to provide 'Housing for all by 2022'. The government of India commenced this initiative in April 2015.

Designed to provide affordable houses to people from Middle Income Group (I), Middle Income Group (II), Lower Income Group and Economically Weaker Section, the scheme enables a home loan applicant from the above-mentioned groups to avail home loan under Pradhan Mantri Awas Yojana for purchase, construction, extension or improvement of house.

We at Kotak Mahindra ensure that the benefits of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) is passed on to our customers. Our executives make sure that the home loan applicants are properly guided and the process is expedited on war footing.

There are multiple benefits under Pradhan Mantri Awas Yojana which home-buyers can benefit from. Here are few enlisted for your help.

The Rate of Subsidy:

A major benefit which a home-buyer can derive from the Pradhan Mantri Awas Yojana is the interest subsidy. While banks are providing a higher interest rate, with Pradhan Mantri Awas Yojana, it is possible to avail up to 6.5% subsidy for a tenure of 15 years or for the tenure of the loan whichever is lower. Subsidy amount is credited upfront into the loan account of the beneficiary and this further helps in reducing the outstanding principal amount due to which a considerable reduction in the equated monthly instalments becomes possible.

Simple Process and Easy PMAY Eligibility:

As a first-time beneficiary of the scheme, you shouldn't be owning a home, you shouldn’t have availed any form of assistance from the government, and your application form should enlist a female member from your family as co-applicant or co-owner or sole owner. When these requirements are met, you can avail the benefit of the scheme.

Supports Renovation and Extension:

The Pradhan Mantri Awas Yojana is not just meant for new home buyers but also for home-owners from the EWS and LIG section. The scheme provides the subsidy for renovating the house or for extending the carpet area. However, there are conditions which govern the renovation or extension of the old house. For an applicant from the EWS section, the carpet area of his/her house shouldn't exceed 30 sq.mts and the carpet area of an applicant from LIG section shouldn't exceed 60 sq.mts.

This scheme gives hope to millions of aspiring home buyers in actualizing their dream of owning a house of their choice.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.