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How Pradhan Mantri Awas Yojana Helps You To Reduce Home Loan EMIs
In an aim to provide affordable housing to a certain section of the population in India, Narendra Modi announced the Pradhan Mantri Awas Yojana (PMAY) initiative in June 2015. The main aim of this initiative is to provide “Housing for All” with the construction of 2 crore houses by the year 2022. There are two components to this scheme – the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor section of society and the Pradhan Mantri Awas Yojana (Gramin) (PMAY-G or PMAY-R) for the rural poor demographic.
Before you can think about the benefits this system provides on your home loan EMIs, there are some things you should keep in mind.
Eligibility Criteria
After checking your eligibility, the next thing to check out is the exact manner in which PMAY can help reduce the overall Home EMI you need to pay on your housing loan. The first thing that needs to be discussed in this regard is the interest subsidy that can be availed.
This, coupled with the fact that the National Housing Bank will pay off your subsidy amount to the lenders, will substantially reduce the overall EMI amount you need to pay. Take into account the address of Mr. Sriram Kalyanaraman, the MD and CEO of the National Housing Bank, who put these EMI savings into context(1). Assuming that you go for the maximum tenure amount of 20 years that you can avail under the PMAY scheme, your EMI payments will be affected in the following manner:
Thus, for struggling families with lower income that need to buy a home, the Pradhan Mantri Awas Yojana has proven to be an excellent scheme, due to the bevy of benefits that this scheme provides.
Source
https://www.antworksmoney.com/blog/reduce-home-loan-emi-pmay/