The Pradhan Mantri Awas Yojana deserves mention among various government initiatives in India. It aims to benefit individuals looking to affordable residential properties without the hassle and as per their income strata.
The primary objective of this scheme is to provide affordable housing for all across the urban and rural sectors of our country with environment-friendly construction methods.
PMAY Eligibility Criteria
This government-backed housing scheme comes with the following terms and conditions, or usually known as PMAY housing loan criteria. These conditions are –
- Homebuyers with an annual family income between the bracket of Rs.3 to Rs.18 lakh, are eligible for a home loan subsidy under the Pradhan Mantri Awas Yojana.
- Only Indian citizens can apply for this scheme.
- Applicants who belong to the EWS, LIG or MIG-1 sections of the society are eligible.
- This housing scheme is for first-time homebuyers
- The mortgaged property has to be owned or co-owned by a female family member.
- You are not eligible if you have already availed the PMAY scheme or any other government subsidy scheme in the past.
Pradhan Mantri Awas Yojana – Subsidy amount as per Eligibility
The subsidies offered under the PMAY are included in the Credit Linked Subsidy Scheme, which can be categorised as per the following categories –
- Economically weaker section
Individuals who have an annual family income up to Rs.3 lakh belong to EWS category. The maximum subsidy interest amount for this category comes to Rs.2.67 lakh at a subsidised interest rate of 6.50%.
- Low-income group
The maximum subsidy interest amount for LIG offered by PMAY is Rs.2.67 lakh. Individuals who have an annual family income of Rs.6 lakh belong to this category; the subsidised rate of interest offered on home loans for LIG is 6.50%
- Middle-income group-1
Those with an annual family income up to Rs.12 lakh fall under MIG-1. In this category, you can avail a maximum subsidy interest amount comes to Rs.2.35 lakh at a reduced interest subsidy rate of 4%.
- Middle-income group-2
Individuals who have an annual income up to Rs.18 lakh belong to the MIG-2 group of CLSS benefits; the maximum subsidy interest amount they can avail on their home loans is Rs.2.30 lakh at a reduced interest rate of 3%.
Hence, from the above classification, you can understand how the home loan subsidy scheme works.
How to apply for a home loan under PMAY?
Interested applicants can consider the following online application process to avail a Pradhan Mantri Awas Yojana loan –
- Visit the official website of PMAY or the online web-portal of your financial institution and navigate to the PMAY section.
- Click on the ‘Citizen Assessment’ option and enter your Aadhaar number.
- Upon entering the above information, you will be redirected to the page consisting of the application form.
- Next, you will be required to enter all your personal information, income details, current address, etc.
- After entering all the above information, you need to click on the ‘I am aware of’ option and the Save button as well.
- A system generated application number will be displayed which you need to take note of for future reference.
- Download the application form and click on ‘Submit’ to conclude your application process.
Next, you are required to submit the application form at your desired financial institution along with the necessary KYC documents while applying for the home loan.
Hence, from the above discussion, you can understand what Pradhan Mantri Awas Yojana is and its eligibility criteria. However, buying a house is one of the important financial decisions of an individual’s lifetime. So, it is advised to take the assistance of a home loan EMI calculator before selecting your repayment period.