Indian government laid down this dream of ‘Housing for all’ by launching Pradhan Mantri Awas Yojana (PMAY). Under this scheme, all the first-time buyers are offered subsidies to make the housing less costly. The subsidy calculator is one of the key tools that will help prospective homeowners to estimate their subsidy. This simple tool plays a very important role in determining eligibility for subsidies and calculating the amount of financial help that someone can obtain. In this blog, we will talk about how how PMAY subsidy calculator works and how home buyers can benefit from it.
What is PMAY?
Before delving into the calculator let’s understand PMAY itself. The Pradhan Mantri Awas Yojana is divided into two categories: PMAY Urban (PMAY U) and PMAY Gramin (PMAY G). These are designed for urban and rural locations, respectively. The main focus of the scheme is to provide inexpensive housing for economically weaker sections (EWS), lower-income sections (LIG), and middle-income sections (MIG).
What is the PMAY Calculator?
The online housing finance institution has a free online PMAY calculator that helps you calculate the subsidy amount you are eligible for. It calculates the amount you could be entitled to a subsidy under the PMAY scheme. The use of this is quite user-friendly and helps to inform you on what to do before applying for a home loan and finance.
How Does a PMAY Calculator Work?
Using the PMAY calculator is very simple. Here’s a step-by-step guide to how it works:
Enter Your Income Category: The first step is to decide to which income group you belong, EWS, LIG or MIG. For example, EWS households earn ₹3 lakh per annum, and LIG households earn between ₹3 lakh to ₹6 lakh. Middle-income groups come for a range of 6 to 18 lakhs annually.
Input Loan Amount: Simply enter the total loan amount you want to take. Understand that the subsidy is granted for a certain portion of the loan. For example, the maximum loan amount which can be subsidized is ₹6 lakhs for the EWS and LIG categories, but more for the MIG groups.
Enter Loan Tenure: Specify the repayment tenure for your loan. Usually, the subsidy is calculated for a maximum tenure of 20 years. If your loan term is longer than this period, the calculator adjusts the subsidy accordingly.
Interest Rate: The calculator will automatically take in the interest rates set by the scheme. However, these rates differ based on the category you fall under and the applicable subsidy per cent.
Calculate: After all details are entered, the calculator will provide you with the estimated subsidy you qualify for along with the reduced loan amount.
Who Can Use the Subsidy Calculator?
The subsidy calculator is a tool that one can use to calculate the subsidy of the PMAY scheme.
- You (have to) be a first-time home buyer.
- For the EWS, LIG or MIG category, your annual household income should be within the specified limits for the category.
- Do not own a pucca (permanent) house anywhere in India.
- According to the 2011 census, the property should be located in statutory towns.
If you meet these conditions, you can use the calculator to find out how much subsidy you could get under the scheme.
Finance and PMAY
Finance plays a key in helping people achieve homeownership. With the help of the PMAY scheme and the easy provision of affordable home loans, more people can now buy their homes. The Pmay calculator complements this by allowing borrowers to make better financial decisions. Beneficiaries can save a not insignificant amount of money in interest by applying for finance under PMAY and can make homeownership more feasible.
Conclusion
The PMAY subsidy calculator is a lifesaver for homebuyers who are looking to take advantage of the government’s plan for affordable housing. Whether you are a part of the EWS, LIG, or MIG group, the calculator provides you with an approximation of the subsidy that you can get to make an informed decision.