Unlocking The Door of Everybody’s Dream Home Made Easy

06 Oct 2018

Back to all News Coverage
Unlocking The Door of Everybody’s Dream Home Made Easy

There was a time when some people saved for a lifetime and eventually would get to buy a home at the far end of life. While for others, buying a home still remained an unfulfilled dream, especially those with comparatively lower income.

Most of them restricted themselves to living in rented homes only. The good news is that those days are a thing of the past and we now have Pradhan Mantri Awas Yojana (Urban) or PMAY (Urban) under the Housing For All (Urban) Mission. Major Indian banks like Bank of Baroda are helping the cause, by making home loans available under the aforesaid scheme.

People from Economically Weaker Sections (EWS), Lower Income Group (LIG) & Middle Income Group (MIG) are covered under the scheme. This is part of the government’s ambitious National Housing Mission to provide “Housing for All” by 2022.

PMAY primer National Housing Mission is being implemented through four verticals of central and state governments. Out of these, one vertical is the Affordable Housing through Credit Linked Subsidy Scheme (CLSS) and is applicable for banks. It is also being monitored by Ministry of Housing & Urban Poverty Alleviation.

PMAY for EWS If the household annual income of the borrower is up to Rs 3 lakh and the proposed house size of 30 square metre, he or she qualifies to be in the EWS category.

PMAY for LIG The borrower is categorised to be in LIG with an annual income of Rs 3-6 lakh and house size of 30-60 square metre.

Under CLSS, interest subsidy of 6.5% is available on the housing loans that may be availed by beneficiaries belonging to EWS and LIG categories. The subsidy is provided to the loan component of up to Rs 6 lakh.

Now every Indian can access affordable housing under PMAY scheme, with banks like Bank of Baroda coming forward and lending a helping hand.

Beneficiaries PMAY has defined the people who can benefit from the central assistance in the concessional loan scheme applicable for urban areas according to the 2001 Census. In a family, it includes husband, wife, unmarried sons and daughters. Importantly, the borrower shouldn’t own a pucca house in his or her name or in the name of any of the family members in any part of India.

PMAY for Middle Income Group (MIG) The affordable housing scheme also covers MIG. This is a fairly important feature given the fact that about four out of the every 10 Indians will be living in cities by the end of this decade.

MIG has been further sub-classified into two sub-groups:

  • MIG I Households with annual income in the Rs 6-12 lakh fall in this category. Houses of up to 160 square metre is an additional criteria.
  • MIG II Households with a higher annual income in the Rs 12-24 lakh fall in this category. Houses of up to 200 square metre is an additional criteria.

The interest subsidy for loan in MIG I and MIG II categories are 4% and 3%, respectively. Of course, the subsidy is applicable in MIG I category is for loans up to Rs 9 lakh and it is up to Rs 12 lakh in MIG II category. This is irrespective of the loan size and for a period of 20 years or the loan term, whichever is less. The good news is that the subsidy payment is payable upfront in both the schemes.

PMAY’s varied use The great thing about PMAY is that it can be availed for a variety of purposes from building or purchasing a house or a flat, buying a residential plot of land and constructing a house to extending an existing house. There is also a provision of reimbursement of construction costs with money from own sources. Last but not the least, home loans under PMAY can be availed after takeover of eligible home loans from other banks and financial institutions.

Clearly, PMAY is not just another home loan scheme. It takes home buying to the lowest rung in the masses and ensures that low income doesn’t come in the way of dreaming about owning one’s own home and enjoying its benefits like a proud home owner. Now every Indian can buy a home with the help of PMAY, with banks like Bank of Baroda lending a helping hand by facilitating affordable housing home loans.

About Bank of Baroda Bank of Baroda

(“The Bank”) established on 20th July 1908 is a State-owned banking and financial services organisation, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.

Bank of Baroda is India’s leading public sector bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 8,200+ branches, 10,000+ ATMs, 1,200+ self-service e-lobbies and 20,000 Business Correspondents. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 20 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. IndiaFirst Life Insurance Company Limited and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.

View Stock Price of the Bank

Connect with Us

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting www.bankofbaroda.in

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.