The Pradhan Mantri Awas Yojana (PMAY) initiative was launched by the Government of India in 2015. The scheme was introduced with an aim to provide affordable housing to the economically challenged and had a target to construct 20 million houses by March 2022. Its objectives were divided into two segments – PMAY Urban (PMAY-U) and PMAY Gramin (PMAY G).
Steps to get the home loan subsidy under PMAY
To get a subsidy under the Pradhan Mantri Awas Yojana scheme, eligible candidates will need to follow these steps mentioned below –
Step 1: Take a look at the eligibility criteria before applying.
Step 2: Consider checking the subsidy rates, amounts and factors categorically.
Step 3: Apply by visiting the official website of the Pradhan Mantri Awas Yojana scheme.
Stated below are a few eligibility requirements that an applicant will need to fulfil to avail home loan subsidy under the PMAY scheme –
- The applicant must belong to a family comprising his/her parents, spouse, and unmarried children.
- He/she must not own a pucca house or any property in his/her own or parents’ name in any part of India.
- The family must not have availed the benefits of any other housing scheme launched by the state or central government.
- The applicant must not have availed the PMAY Credit Linked Subsidy Scheme (CLSS) from any financial institution.
- Co-ownership of an adult female member of a family is mandatory to avail the CLSS under PMAY.
- The property’s location must come under the listing of approved towns and cities of the PMAY scheme.
- Aadhaar card is a compulsory document to be deemed eligible to avail the PMAY subsidy.
- Your total annual household income must be –
– Within Rs.12 lakh to Rs.18 lakh to be eligible under Middle Income Group-II (MIG II) category.
– From Rs.6 lakh to Rs.12 lakh to qualify under Middle Income Group I (MIG I) category.
– Between Rs.3 lakh to Rs.6 lakh to be eligible under Low Income Group (LIG) category.
– Below or within Rs.3 lakh to be eligible to get under the Economically Weaker Section (EWS) category.
These are the factors that one requires to fulfil to have his/her name notified under the PMAY eligibility list.
How much subsidy can be availed under PMAY?
Following is a list of the subsidy amount that an individual qualifying under the PMAY list can claim according to the category that he/she belongs to –
- MIG II: A subsidy of 3% on a home loan availed of up to Rs.12 lakh.
- MIG I: 4% subsidy on a home loan of up to Rs.4 lakh.
- LIG & EWS: Subsidy of 6.5% on a home loan of up to Rs.6 lakh.
Apart from this categorisation according to one’s income, the percentage of subsidy also depends on the total carpet area of the house that a person chooses to buy. For EWS and LIG categories, the area is 320 sq. ft. and 645 sq. ft., respectively. For MIG I and II, the area is 1722 sq. ft. and 2152 sq. ft., respectively.
All criteria stated, it is important to note that a borrower can enjoy up to Rs.2.67 lakh as a subsidy on a home loan under PMAY. The subsidy is applicable for a maximum loan tenor duration of 20 years.
Once you are through these criteria, you can now get your name enlisted under the Pradhan Mantri Awas Yojana scheme. Visit the official PMAY website to get your name enrolled and avail a home loan subsidy to fulfil your dream of owning a house.
If you fail to qualify under the PMAY scheme, you can still avail a home loan from any HFC against attractive rates of interest.
To simplify and accelerate the loan application process, these HFCs also come up with certain pre-approved offers. These offers are available on a range of financial products like home loans, loan against property, etc. Check your pre-approved offer by sharing some details like your name and contact number.
With a low cost of borrowing, these home loans can certainly help finance the purchase of a house, even if you do not qualify for the PMAY subsidy.
