To provide housing for all, the government of India launched the Pradhan Mantri Awas Yojana (PMAY) in 2015. The mission will be implemented during the period of 2015–2022 with the help of urban local bodies and other agencies through states and union territories. The scheme aims to provide housing solutions to meet the growing housing demands in India. Beneficiaries of the scheme are eligible for interest subsidy if they need a housing loan to purchase or construct a house. Let us see who can apply for the PMAY benefits.
Pradhan Mantri Awas Yojana Eligibility
There are three income PMAY eligibility categories under which an individual can apply for the PMAY scheme. These are as follows:
- Economically weaker section (EWS)
- Low income group (LIG)
- Middle income group (MIG)
Eligibility Criteria for Applicants Under EWS and LIG Categories
Applicants applying under these categories should have an annual income in the range of Rs.3 lakh to Rs.6 lakh.
- You cannot become a beneficiary of this scheme if you already own a ‘pucca’ house, i.e. a house built with stone, brick, cement, concrete, or timber.
- The interest subsidy available under this category is 6.5% for a tenor of 15 years.
- It is mandatory to include the name of an adult female member in the property ownership document. But this condition is not mandatory in case of extension or renovation of an existing kuccha or pucca house.
- Housing loans for a maximum term of 20 years are available under this scheme. The maximum age limit for repayment of loan is 70 years.
Eligibility Criteria for Applicants Under MIG Category
The MIG category is further divided into MIG 1 (annual income between Rs.6 lakh and Rs.12 lakh) and MIG 2 (annual income between Rs.12 lakh and Rs.18 lakh).
Middle Income Group 1 (MIG 1)
People belonging to this category should have an annual income between Rs.6 lakh and Rs.12 lakh. Female ownership is not mandatory for people belonging to this category. Interest subsidy is 4.0% for this category for a maximum period of 20 years. The carpet area under this component cannot exceed 160 square metres.
- The applicant or applicant’s family or household should not have a pucca house in any part of the country.
- The applicant has never availed any central or state assistance from the government of India under any housing scheme.
- It is mandatory to include the name of an adult female member in the property ownership document.
- Applicants under this scheme can avail credit-linked subsidy of 4% for loan amount up to Rs.9 lakh.
- Loan is sanctioned for a period of 20 years and can be extended up to 30 years provided the borrower repays the loan before attaining the age of 70 years.
- The EMI on home loan should not exceed 50% of the gross income of the applicant.
Middle Income Group 2 (MIG 2)
People belonging to this category should have an annual income from Rs.12 lakh to Rs.18 lakh. Female ownership is also not mandatory for people belonging to this category. The interest subsidy is 3.0% for this category. The carpet area under this component should be up to 200 square metres.
- The applicant or applicant’s family or household should not have a pucca house in any part of the country.
- The applicant has never availed any assistance from the government of India under any housing scheme.
- It is desirable to include the name of an adult female member in the property ownership document.
- Applicants under this scheme can avail credit-linked subsidy of 3% for loan amount up to Rs.12 lakh.
- The loan is sanctioned for a period of 20 years and can be extended up to 30 years provided the borrower repays the loan before attaining the age of 70 years.
- The EMI on the home loan should not exceed 50% of the gross income of the applicant. The net income should not be less than 50% of the gross income for loans up to Rs.10 lakh.
If you are eligible for PMAY subsidy benefits and have not applied for the same while taking your home loan, you can submit your request to the lender. After reviewing your request, the lender will forward the claim to the National Housing Bank. The subsidy will be provided on your home loan interest rate.
Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Gurgaon, Arwind Sharma is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumni of Princeton University, USA. During his free time, Arwind teaches children from marginalised sections of society and also work on his blog.