With the mission to encourage prospective homebuyers, the Government of India issued an initiative aiming to provide affordable housing to eligible beneficiaries by 2022. The initiative, also known as the Pradhan Mantri Awas Yojana (PMAY), primarily aims to construct around 2 crore houses across the country.
With simple PMAY eligibility, borrowers can apply for subsidy benefits and purchase a property of their choice.The economically weaker population of the nation can apply for the PMAY scheme by fulfilling the eligibility, as mentioned below.
PMAY eligibility criteria
Beneficiaries fulfilling the PMAY eligibility criteria are categorised into the following for subsidy distribution:
- Lower Income Group (LIG): Applicants having an annual household income ranging between Rs.3 lakh and Rs.6 lakh fall under the LIG category. They must provide needed proof to claim the benefits under this scheme.
- Middle Income Group-I (MIG I): Applicants with an annual income below Rs.12 lakh fall under the MIG – I category.
- Middle Income Group-II (MIG II): If an applicant’s annual income is between Rs.12 lakh and Rs.18 lakh, he/she falls under the MIG – II category.
- Economy Weaker Sections (EWS): Applicants with less than Rs.3 lakh annual income are included in the EWS category.
Additionally, other minorities are also included in this category, based on their economic strata. It includes Scheduled Caste (SC), women, Scheduled Tribe(ST), and Other Backward Castes (OBCs).
Further, individuals belonging to these categories will be eligible to apply for the PMAY schemeif they meet these criteria:
- The applicant or any other family member of the applying individual must not have a pucca house in any part of India.
- Individuals with an annual income of up to Rs.18 lakh can apply for this scheme. Another thing to note is that while computing the annual income, the entire household’s income must be considered.
- The beneficiary will not be able to enjoy the key benefits of Pradhan Mantari Awas Yojana, if the house is already built.
- The property must be mandatorily co-owned by a female member of the family.
- Applying households should not have previously availed any central assistance from the central or state government for housing.
- The chosen property must be located at one of the statutory towns, as identified under the 2011 Census. If not, then it must be located at an updated planned area near the identified towns.
- In case of married applicants, joint ownership is given, or either of the spouses gets a single PMAY subsidy.
A few additional parameters are used to identify beneficiary categories before constructing the PMAY list. They are mentioned below:
- Applicants belonging to the LIG category should choose a dwelling unit with a maximum carpet area of 60 square metres. These applicants can avail a loan amount of Rs.3 lakh to Rs.6 lakh. Moreover, the subsidy on interest rate for such individuals is 6.5%.
- MIG – I applicants need to select a property with a maximum carpet area of 160 square metres. Such applicants are eligible to get a home loan Rs.6 lakh to Rs.12 lakh. Further, the interest rate subsidy on home loans for MIG – I category individuals is 4%.
- Applicants under the MIG – II category must choose a property with a maximum carpet area of 200 square metres. They are eligible to borrow Rs.12 lakh to Rs.18 lakh home loans. Also, the interest rate subsidy available for these individuals is 3%.
- EWS individuals will fulfil the PMAY eligibilityif they have a maximum carpet area of 30 square metres for the dwelling unit. These applicants can get a loan of up to Rs.3 lakh with a subsidy on an interest rate of 6.5%.
You must now be confident in knowing how PMAY eases your way to becoming a homeowner. Along with affordable housing for all, the Ministry of Housing has also listed the leading financial institutions that provide loans for buying a house under PMAY.
These lending institutions also extend pre-approved offers that help individuals with a hassle-free loan application procedure. These offers are available across varied financial products like loan against property, home loans, etc. To check your pre-approved offer, you only need to enter a few basic details.
The PMAY scheme is rapidly increasing the growth in real estate by encouraging more and more individuals to own a home. However, proper knowledge about its regulations and PMAY eligibility is crucial to make an informed decision.