Bank of India Pradhan Mantri Awas Yojna Housing Scheme

Interest Subsidy

6.50% for a tenure of 15 years

Subsidy under this scheme

• The Net Present Value of the interest subsidy is calculated at a discount rate of 9%

• The interest subsidy rate is valid for loan amount of Rs 6 lacs and if the loan amount is more than Rs 6 lacs then no subsidy is levied.

• Interest Subsidy will be credited upfront to the loan amount which accounted to the beneficiary through lending institutions which results in reduced effective housing loan and EMI.

Ambition

• To provide houses to the Economically Weaker Section and Lower Income Group of people who cannot afford to own a house on their own because of the high interest rates or huge amount on houses.

• For new construction of houses or any addition to the rooms like kitchen or toilet etc. Credit Linked subsidy will be available for housing loan.

Eligibility

• Economically Weaker Section (EWS)

• Lower Income Group(LIG)

• The maximum age must be 70 years at the end of repayment period.

Coverage

This scheme shall cover all 4041 statutory town as per census 2011.

Beneficiary Family

• The beneficiary family will comprise of husband, wife and unmarried children.

• The beneficiary family must not possess any kind of concrete houses in his/her name or in the name of any family member.

Income Criteria

• EWS : The minimum annual household income of an EWS category must be Rs 3 lacs per annum.

• LIG : The minimum annual household income from LIG category is Rs 3 lacs to Rs 6 lacs.

Maximum Loan Amount

The maximum loan amount is disbursed under certain categories :

• Metropolitan cities with more than 10 lakh population : Individuals could sanction loan amount up to Rs 28 lacs with the value of house not excceding Rs 35 lacs.

• Others with population below 10 lakhs : The maximum loan amount disbursed in this area is Rs 20 lacs with the value of house not exceeding Rs 25 lacs.

Repayment Period

You can repay the loan amount within a maximum period of 15 years with a moratorium of 36 months.

Security

Equitable Mortgage of the property purchased through the loan amount disbursed by the bank under the PMAY scheme.

Margin

• Up to Rs 20 lacs : 15%

• Above Rs 20 lacs up to Rs 28 lacs : 20%

Disbursement

Disbursement of the loan amount is done through 4 installments by the bank to the beneficiary depending upon the progress of the construction.

Documents Required

• Duly filled Application Form

• Self Declaration – EWS/LIG Income certificate

• Self-affidavit Income Certificate

• Identity Proof

• Nationality Identification Proof

• Proof of Category(ST/SC/OBC/Minority etc.)

• Address Proof

• Proof of Income : Original Salary Slip/Salary Certificate/other income.

• Latest ITR/ IT Assessment Order/Form 16 if applicable

• Last 6 months Bank Statement.

• A brief note on the nature of business/activity/self-drawn attested financial statement/ Business license in case of self-employed.

• Valuation Certificate from the approved valuer.

• The approved plan of construction.

• Agreement for construction with Builder/Developer.

• NOC for Housing society / Competent authority.

• Receipt of advance payment made to the builder/seller.

• A brief note on the nature of business/ activity / self-drawn attested financial statement /

• business license in case of self-employed.

• Valuation certificate from the approved Valuer, if not valued Affidavit from the beneficiary that he/she does not possess a pucca house.

• Letter of allotment of property / agreement to sale/ title deeds/ lease deed / mutation in respect to the pre-owned property, which is to be extended.