Understanding Pradhan Mantri Awas Yojana (PMAY) and its Eligibility

Pradhan Mantri Awas Yojana
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The Government of India’s Pradhan Mantri Awas Yojana (PMAY) has built around 1.50 Crore houses since its inception. The initiative has set a massive target of building 20 million homes for people belonging to 3 categories of income level. Your Pradhan Mantri Awas Yojana eligibility depends mainly on the income class that you belong to:

  • Economically Weaker Sections (EWS) – Annual income of Rs. 3 Lakh
  • Low Income Group (LIG) – Annual income of Rs. 3 Lakh – Rs. 6 Lakh
  • Middle Income Group I (MIG I) – Annual income of Rs. 6 Lakh – Rs. 12 Lakh
  • Middle Income Group-II (MIG II) – Annual income of Rs. 12 Lakh – Rs. 18 Lakh

Understanding PM Awas Yojana

The Government of India initiated Pradhan Mantri Awas Yojana to provide affordable housing for all. The credit-linked subsidy scheme (CLSS) is one of its components that provide subsidies on home loan interest.

Individuals who avail this scheme get a subsidy of up to 6.50% on interest payments. They can save a maximum of Rs. 2.67 Lakh on the same. Considering the number of beneficiaries, the government will be providing a total of $31 billion US dollars in home loan subsidies under this housing for all schemes.

To enjoy the key benefits of PMAY, individuals must fulfill the eligibility criteria.

Eligibility criteria for availing PMAY CLSS

  1. First home rule: The applicant or any other family member should not own a house anywhere. The Pradhan Mantri Awas Yojana eligibility also dictates that the applicant must not have availed any other housing scheme under the central or respective state governments.
  2. Location criteria: The property must fall under the limits of statutory towns and cities or their adjacent planning area. If you plan on taking a loan for a property that is outside the said limits, the scheme will not provide any home loan interest rate subsidy.

For EWS and LIG:

  1. Floor area specifications – The scheme has specified the maximum permitted carpet size for each income group. Under EWS, the maximum permissible carpet size is 30 sq. m, and for LIG, it is 60 sq. m.
  2. Female ownership – The scheme has specified that the property must be owned or co-owned by at least one female member of the family. For example, the wife and husband must share ownership rather than only one male owner. There are many other reasons why you should buy a home under your wife’s name.

For MIG I and MIG II

  1. Floor area specifications – The floor size for MIG I group must not exceed 160 square meters, and for MIG II the maximum floor area permissible is up to 200 square meters.

Female ownership for this group is not mandatory but recommended. A male member of the family can be the sole owner.

If you are planning to apply for a loan under this scheme, you can use a PMAY eligibility calculator to know the maximum subsidy that you can avail. Additionally, learning about the list of documents you need for a home loan will help you navigate through the process with ease and increase chances of approval.

As per the 2019 Budget, around 1.53 Crore houses have been built under PMAY between 2014 and 2018. The scheme seeks to construct an additional 1.95 Crore by the end of FY 2022.

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