Under Pradhan Mantri Awas Yojana or PMAY, the government has already approved 1.23 lakh house constructions along with Rs.4,988 crore investments as of 2019.
PMAY is a flagship project of the Government of India to provide residential facilities to all citizens. With substantial subsidy on a home loan, this government-endorsed economical housing program comes with several other facilities.
Additionally, lenders provide several home loan repayment options with this scheme; it helps eliminate the credit becoming a burden on the borrowers.
Here are the eligibility criteria, features, and benefits of PMAY –
PMAY – Eligibility criteria
PMAY initiative was introduced to provide housing for every Indian citizen by offering home loans with subsidized interest rates.
Nonetheless, there are some basic eligibility criteria for PMAY housing scheme to meet while availing of this facility. These criteria are–
- An individual or a concerned family comprising of a husband and wife, unmarried son and unmarried daughter can apply for a PMAY housing loan.
- The applicant must not possess a pucca house anywhere in the country
- Any other central or state-aided housing scheme must not be availed by any of the above-said family members.
- One of the compulsory criteria is to have at least one adult female member as the co-owner of the property if the applicant comes from Economically Weaker Section or Lower Income Group.
- The property location must come under the statutory town and neighboring areas according to the 2011 Census to avail this loan.
- Married couples will also be treated as a separate family, and they are allowed to avail of this facility if none of the co-owner possesses a pucca house.
Other than the eligibility criteria, it is also essential to know the documents needed to apply for a home loan.
PMAY – Benefits
PMAY caters to complete the residential requirements of Middle Income Groups or MIGs, Low Income Groups or LIGs, and Economically Weaker Section or EWS. Depending on your financial strength, you need to decide the right EMI amount for you. You can also use a home loan repayment calculator to find the amount you can avail based on your income and liabilities.
- EWS
A household, with annual earnings of up to Rs.3 lakh, can avail a loan of up to Rs.6 lakh. With a subsidy of up to 6.5% on interest, the home loan EMI burden will be minimal. This group can avail a maximum interest subsidy of Rs.2.67 lakh. EWS families are allowed to possess 30 sq. m of carpet area under this plan.
- LIG
With annual earnings from Rs.3 to Rs.6 lakh, LIG groups can also avail a maximum loan of Rs.6 lakh with a 6.50% interest rate subsidy. Even though the limit of availing subsidy on interest amount is the same as EWS group (Rs.2.67 lakh), LIGs can possess up to 60 sq. m carpet area.
With multiple home loan repayment options, managing the credit will also not be a hassle for such families.
- MIG-1
If the income ranges between Rs.6 to 12 lakh, the beneficiary will be acknowledged as a MIG-1 applicant. This group can avail a home loan of up to Rs.9 lakh with a 4% interest rate subsidy. Such beneficiaries are allowed to possess 160 sq. m dwelling carpet area. The allowed threshold of interest subsidy is Rs.2.35 lakh for MIG-1 families.
- MIG-2
MIG-2 families with Rs.12 to 18 lakh income per annum can avail a subsidy of up to 3%. The loan amount they can avail is up to Rs.12 lakh with a maximum subsidy of Rs.2.30 lakh on the accumulated interest amount. They can possess a carpet area of 200 sq. m.
PMAY – Features
- Allocation of ground floors to senior citizens and differently-abled individuals.
- Use of environment-friendly and renewable technologies for construction is preferable.
- PMAY covers 4041 towns and 500 Class I cities.
Lastly, you can apply for PMAY online by providing your personal, income, residential and bank details along with your Aadhaar number. With easy home loan repayment options, you can possess your own house with PMAY. You can use If it becomes difficult for you to repay, it is advisable to refinance your home loan.
