The Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) was announced by Prime Minister Narendra Modi and envisages the vision of ‘housing for all’ by the year 2022. Kotak Mahindra Bank offers CLSS under PMAY, which provides interest subsidy on housing loans to eligible beneficiaries from the Economically Weaker Sections (EWS) / Low-Income Group (LIG) and middle-income group (MIG) segment. The subsidy can be availed for constructing or purchasing a house, as per the eligibility criteria prescribed under the scheme, and the same is b.f. below:
|Maximum household income per annum||Up to INR 6 lakhs||INR 6-12 lakhs||INR 12-18 lakhs|
|Maximum property area (carpet area)||No restriction||160 sq. m||200 sq. m|
|Maximum loan amount for subsidy calculation||INR 6 lakhs||INR 9 lakhs||INR12 lakhs|
|Maximum tenure for subsidy calculation||20 years||20 years||20 years|
|Interest subsidy (% p.a.)||6.5 percent||4 percent||3 percent|
|Subsidy amount||INR 2.67 lakhs||INR 2.35lakhs||INR 2.30 lakhs|
|Women ownership on property||Yes||Not applicable||Not applicable|
|The beneficiary family should not own a pucca house in India||Applicable||Applicable||Applicable|
|Housing loan sanction date to be eligible for subsidy||After 17.06.2015||After 01.01.2017||After 01.01.2017|
Objective of the PMAY
PMAY was started in 2015 for the following purposes:
Features of the PMAY
1 - The definition of ‘Beneficiary Family’ under EWS-LIG, MIG-I, and MIG-II Schemes will comprise of a husband-wife and their unmarried children. An adult earning member (irrespective of marital status) can be treated as a separate family/household
2 - Home extension/repair is included only under the EWS-LIG scheme; for this, the area limit (in terms of built-up area) for the EWS category will be 30 sq. m (323 sq. ft.) and for the LIG category it will be 60 sq. m (646 sq. ft.)
3 - EWS is defined as a household/family having an annual income of up to Rs 3 lakhs.
4 - LIG is defined as a household/family having an annual income of between Rs 2 lakhs to Rs 6 lakhs
5 - Interest subsidy on the housing loan is calculated at applicable rates for PMAY EWS/LIG/MIG-I/MIG-II Schemes respectively for a tenure of 20 years or the tenure of the loan, whichever is lower. The Government of India retains the supreme right of granting/rejecting the subsidy, and the bank will not be held liable for the decision taken by the government
You can borrow up to 90% (upto 80% for original loan between Rs. 20-75 Lacs, & 75% for original loan above Rs. 75 Lacs) of the cost of the property in case of Home Loan Balance Transfer.
Your home loan repayment capacity as determined by Kotak Mahindra Bank will help decide how much you can borrow.
You can opt for a loan period of up to 20 years or outstanding tenure of the proposed loan to be taken over whichever is lower and can vary depending on your profile.
If you are an individual - your spouse, your parents, or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.
In Floating rate loans, change in MCLR rate will have direct impact on the interest rate of Home Loan.
You can take the disbursement after credit, technical and legal appraisals of the property have been done, besides execution of relevant documents & deposit of original property documents is required to be completed prior to disbursement.
The home loan will be disbursed in full or in suitable installments taking into account requirement of funds and progress of construction, as assessed by Kotak Mahindra Bank.
Yes, very much so. In many states in India, the agreement for sale between the builder / seller and the purchaser is required by law to be registered.
Your home is your pride and joy. Don't let unplanned events take it away. Property insurance will take care of home in case an unforeseen event strikes.
In most cases, the property itself, bought or intended to be bought, becomes the security till the entire loan is repaid.
Yes. Borrower can claim tax benefits on the availed home loan as per below details.
Summary of tax benefits on principal and interest paid is as below
|Tax Benefits||On Principal Repaid||On Interest Paid|
|First Home – Self Occupied||Actual principal repaid subject to a maximum of Rs. 1,50,000 (Rs. 2 lakh for senior citizens) can be claimed as investment eligible for tax deduction under section 80C.||Actual home loan interest paid subject to a maximum of Rs. 2 lakh (Rs. 3 lakh for senior citizens) if house construction completed within 5 years from the end of the financial year in which loan is taken
If construction of house not completed within five years then Rs. 30,000 is tax exempt
Additional exemption of upto Rs. 50,000 on interest paid for loans upto Rs. 35 lakh with cost of home upto Rs. 50 lakh.
|First Home – Rented/ Vacant (deemed to be let out property)||Upto Rs. 1,50,000 (Rs. 2 lakh for senior citizens) eligible for tax deduction under Section 80 C. The deduction is available only if the property owner is staying in a different city for work.||Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or b) actual interest paid for all properties owned by a tax payer.|
|Second Home or Additional Property||None||Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or
b)actual interest paid for all properties owned by a tax payer
|Under Construction Property||None||The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh.|
Yes, Prepayment is allowed on Home Loan.
Prepayment / foreclosure is allowed on Home Loan without any charges.
Co-Borrower can be spouse, parents or brother or son, but income of co-borrower is consider as per home loan policy of Kotak Mahindra bank.
There is no capping of upper limit of number of co-borrower, however minimum one co-borrower is required.
Floating rate of interest are the interest rate which changes with change in interest rates. If rate of interest increases by the lender, customer who has avail loan on floating rate of interest, their Rate of interest also increases hence customer repayment (EMI) also increases.
An amortization schedule is a table detailing each periodic payment on Loan as generated by an amortization calculator. Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule.
In Kotak Mahindra Bank time require for disbursement is 2 working days after submitting all relevant document as per legal or any other document required.
No, borrower cannot sell property without clearing outstanding home loan amount of existing bank/financial institution.
The market value of a property is the price at which that property is exchanged between a buyer and a seller on the date of valuation / execution of Agreement.
A beneficiary family that does not have any pucca house in any part of India is eligible, as per the income criteria defined for the family.
The beneficiary family will comprise of the husband-wife and their unmarried children. An adult earning member (irrespective of marital status) can be treated as a separate family/household.
It is not.
Women ownership or co-ownership is mandatory for EWS and LIG only. However, this condition is not mandatory for self-construction / extension. Women ownership is not mandatory for MIG-I and MIG-II.
After the loan is disbursed, the required details are sent by the bank to the NHB (National Housing Bank) for validation of data and other checks. The NHB, after necessary due diligence, approves the subsidy to the eligible customer/borrower.
Once the subsidy amount is received from the NHB, it is credited to the borrower’s home-loan account as a part payment, and the EMI is proportionately reduced.
There is no limit. However, the subsidy will be limited to a defined loan amount for each category (see details in the table above); any loan amount in excess of this defined amount will bear the non-subsidised rate of interest.
You do not need to provide additional documents except for a self-declaration (in the format that the bank will provide) that you do not own any pucca house.
Yes, you can avail this facility, subject to meeting the income and other criteria defined under this scheme.
Disclaimer (Things you should know):
For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.
* Rs. 5,000 Flat processing fee applicable for women applicants.