Pradhan Mantri Awas Yojana: Features, Benefits, and Eligibility

In a bid to facilitate affordable housing for all, the Indian Government launched the Pradhan Mantri Awas Yojana in 2015. It has now been extended up to 2022 and includes beneficiaries belonging to Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG). Read on to know the features, benefits, eligibility, and more about PMAY below.

Objectives and Features

The government has been working towards fulfilling the following objectives via PMAY:

• To build and/or enhance houses as a legacy.
• To promote ‘Affordable Housing’ via CLSS.
• To rehabilitate slum dwellersInterest Subsidy Criteria with participation from the private sector.
• To facilitate affordable housing with funds from the government and private sector.

Based on these objectives here’s the list of features that define the PMAY scheme.

• The government offers interest subsidy on home loans having a 20-year tenor that you avail under the PMAY scheme.
• This scheme gives preference to women, senior citizens, SC/ST, backward classes, and applicants from the minority communities.
• This scheme makes ground floor accommodation compulsory for the disabled and senior citizen applicants.

PMAY Eligibility Criteria

In order to avail the PMAY benefits, you need to qualify for it basis its terms and conditions. Here’s the PMAY Eligibility Criteria.

• You can avail a home loan under this scheme and use it to fund the construction or purchase of a home.

• In order to qualify you can apply as individually or behalf of your family, where the household must consist of you, your spouse, and unmarried children.
• The only exception is that earning members, whether married or unmarried, are considered as a separate household.
• As an applicant the members of your household or you cannot own a ‘pucca’ house in any part of the country.
• You cannot be a beneficiary of any central government housing scheme.

Income Criteria

For the purpose of offering an interest subsidy, PMAY divides its beneficiaries into three sections based on their income:

• Households with an annual income less than Rs.3 lakh belong to Economically Weaker Section.
• Households with an annual less than Rs.6 lakh belong to Low Income Group.
• Households with an annual income between Rs.6 to Rs.12 lakh belong to Middle Income Group I.
• Households with an annual income between Rs.12 lakh to Rs.18 lakh belong to Middle Income Group II.

Carpet Area Criteria

Each beneficiary should abide by the eligible carpet are limit in order to benefit from PMAY. This means the house the buy or construct should meet the specified carpet are cut off.

• EWS up to 30 sq.mt.
• LIG up to 60 sq.mt.
• MIG I up to 160 sq.mt.
• MIG II 200 sq.mt.

Interest Subsidy Criteria

Based on your income, you will be entitled to receive a subsidy on home loan interest rate as follows:

• Beneficiaries belonging to the EWS and LIG category are eligible to receive 6.5% subsidy on a loan amount of up to Rs.6 lakh, which translates to a total interest subsidy of up to Rs.2.30 lakh.
• Beneficiaries belonging to MIG I category are eligible to receive 4% subsidy on a loan amount of up to Rs.9 lakh.
• Beneficiaries belonging to MIG II category are eligible to receive 3% subsidy on a loan amount of up to Rs.12 lakh.

When looking for a Pradhan Mantri Awas Yojana loan,apply with a reputed lender to enjoy added features and benefits of a lucrative home loan. There are several NBFCs which offers Home Loan of up to Rs.5 crore at cost-effective terms. This way, you can acquire a home of your choice without any compromises and repay the loan comfortably.

Additional Read: Pradhan Mantri Awas Yojana – All You Need to Know about PMAY