Pradhan Mantri Awas Yojana Eligibility Criteria and Steps to Get Its Subsidy

Pradhan Mantri Awas Yojana Eligibility Criteria and Steps to Get Its Subsidy

October 16, 2019 0 By Sachi kaushik

In the Union Budget of July 2019, the government announces that over 26 Lakh houses have been constructed under the PMAY subsidy scheme. The Pradhan Mantri Awas Yojana, also known as PMAY, came into effect on the 25th June 2015 in an attempt to provide affordable housing to the financially weaker sections of the society. PMAY offers subsidised home loans to those who cater to its eligibility criteria.

Eligibility criteria

In case you wish to avail advances under this scheme, you will need to fulfil the eligibility criteria as discussed below.

The PM Awas Yojana offers home loans based on the income group of the applicants, which is categorised as economically weaker sections, lower-income group and middle-income group individuals.

Those with income –

  • Below Rs. 3 Lakh are categorised as economically weaker sections
  • Above Rs. 3 Lakh and below Rs. 6 Lakh are determined as a lower-income group
  • Between Rs. 6 Lakh and Rs. 12 Lakh qualify for subsidies under middle-income group I or MIG-I category
  • Above Rs. 12 Lakh and below Rs. 18 Lakh falls under middle-income group II or MIG-II individuals.

You can use a calculator to check your PMAY eligibility to avail advances under this scheme. To use the calculator, you will have to share your gross annual income, loan amount, tenure and net usable carpet area. You are also required to declare if the property purchased is your first pucca house.

Subsidy

The PMAY eases your way to becoming a homeowner and depending on your income stability; the subsidies are provided in the following manner, such as –

  1. Economically weaker sections – Borrowers can avail advances at a subsidy of 6.50% with a loan amount of Rs. 6 Lakh. As such, the maximum interest subsidy under this housing for all schemes that can be availed is up to Rs. 2,67,280.
  2. Lower-income group – Individuals who belong to this category are eligible to avail a home loan with a loan amount of up to Rs. 6 Lakh at a subsidised interest rate of 6.50%. The maximum interest subsidy amount allowed is the same as for the EWS category.
  3. Middle-income group I or MIG-I – The Pradhan Mantri Awas Yojana for a home loan allow individuals of this income group to avail advances of up to Rs. 9 Lakh at a subsidy of 4%. This scheme allows for a maximum interest subsidy amount of up to Rs. 2,35,068.
  4. Middle-income group II or MIG-II – Applicants can avail a home loan of up to Rs. 12 Lakh at an interest rate of 3%. They are thus eligible for a maximum interest subsidy amount of up to Rs. 2,30,156 under this scheme.

Application process

To avail a subsidised home loan interest rate under this scheme, you are required to visit the official portal of PMAY and provide your Aadhaar number to register. You will receive an OTP that you will have to enter to be redirected to a new page.

On this page, you will have to share some details like your name, contact details, state, family income, and the category you belong to (economically weaker sections, lower-income group and middle-income group individuals). After you have provided the required details, enter the correct captcha code and click on submit to complete your application.

Alternatively, you can also avail home loans in case you do not fulfil the above mentioned eligibility criteria. Several NBFCs like Bajaj Finserv offer Home Loans at affordable interest rates against minimal documentation.

Pradhan Mantri Awas Yojana 2019 also offers subsidised home loans to the minority sections of the society such as the scheduled tribes, scheduled castes, and also for women. To reap all the benefits of PMAY subsidy, you must provide accurate details while filling up the applicat