Pradhan Mantri Awas Yojana, PMAY by ICICI bank provides more information about the scheme.The scheme was announced by our Honourable Prime Minister Narendra Modi and envisages the vision of housing for all by the year 2022.
Know more by following the below FAQs on PMAY by ICICI bank.
1Q. Who can avail Pradhan Mantri Awas Yojana PMAY under credit linked subsidy scheme?
1A. A beneficiary is defined as:
- A family comprising of husband, wife and unmarried children
- Beneficiary should not own a pucca house either in their name or in the name of any member of their family in any part of India to receive central assistance under the Mission
- Meeting income criteria defined under the scheme.
2Q. What is Pradhan Mantri Awas Yojana Credit linked subsidy scheme?
2A. Credit Linked Subsidy, is a scheme launched by our honourable Prime Minister Shri Narendra Modi for Economically Weaker Section (EWS) and Low Income Group (LIG). The beneficiary would be eligible for interest subsidy on purchase/construction of a house. The scheme is also available for enhancement of a dwelling unit.
3Q. What is the interest rate subsidy and the loan amount for PMAY?
3A. Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 15 years or during tenure of loan whichever is lower on the initial Rs. 6 Lakh. Any additional loan/s beyond Rs. 6 Lakh, will be at nonsubsidised rate.
4Q. How will you receive the interest subsidy benefit under PMAY ICICI bank?
4A. The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.
For example, the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.
*The above example is for illustration purpose only and will depend on the actual amount received or any changes done by NHB on the same.
5Q. Is there any loan amount limit on PMAY by ICICI bank?
5A. No, there is no loan amount limit under this category of loans by ICICI bank.
6Q. What are the norms for EWS and LIG categories?
6A. The income norms for EWS/LIG categories are defined as follows:
- EWS households with an annual income up to Rs. 3 Lakh
- LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh
7Q. Where can you apply for credit linked subsidy scheme?
7A. You can apply for Housing Loan under CLSS at any ICICI Bank branch.
8Q. Do you have to give any additional documents to avail Pradhan Mantri Awas Yojana, PMAY by ICICI Bank?
8A. Just one additional document of declaration of not owing a pucca house in your name.
9Q. If you are a self-employed with a small business, can you avail Home Loan under Pradhan Mantri Awas Yojana, PMAY in ICICI Bank?
9A. Yes, you can avail this facility, if you qualify for the income criteria defined under this scheme.
Illustration: Pradhan Mantri Awas Yojana, PMAY, is a government subsidy scheme for families buying their first house, though there is no upper Loan Amount and Tenure cap for the scheme, however the subsidy benefit would be available on the initial Rs. 6 Lakh. It would be computed at a rate of interest of 6.5% p.a on a maximum amount of Rs. 6 Lakh or the loan amount whichever is lower for 15 years tenure with discounting rate of 9%. For 6 Lakh the interest subsidy comes to around Rs. 2,20,000. Hence an upfront subsidy of Rs. 2,20,000 would be claimed by the bank from NHB and the same would be adjusted against the outstanding amount in the Loan Account. The loan outstanding would reduce and result in lower EMI of approximately Rs. 2,000.
10Q. What is the size of dwelling units under Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana?
10A. The Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component should be up to 30 sq. m. for EWS category and up to 60 sq. m. for LIG category. However, the beneficiary can construct a bigger house.