The Central Government’s ‘Housing for All’ movement has given rise to several schemes to help economically challenged sections of the society meet their housing needs. Under schemes like Pradhan Mantri Awas Yojana (PMAY), formerly known as Indira Gandhi Awas, both rural and urban populations of India can avail home loans at subsidised interest rates.
Do you want to make the most of PMAY features and benefits? Let’s learn about Indira Gandhi Awas Yojana in detail first!
Here are all the salient features and benefits of this government-backed scheme:
To make use of these features and perks, individuals should know about the components of Indira Gandhi Awas Yojana in detail.
There are two major components of Indira Gandhi Awas Yojana or Pradhan Mantri Awas Yojana (PMAY) — PMAY-U and PMAY-G.
Individuals residing in urban areas can avail this particular scheme. This has been further distributed into three components, depending on the income category the beneficiary belongs to. The categories are Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG).
This category is mainly for financially challenged people residing in rural areas.
The interest subsidy will differ depending on which category an individual applies for. However, before going ahead with the application procedure, one must be aware of all the eligibility requirements first.
To reap the benefits of Pradhan Mantri Awas Yojana, applicants need to meet certain eligibility parameters. These parameters will vary across different income groups, and so will the subsidies. Before diving into the income-specific criteria, let’s understand the basic requirements of Indira Gandhi Awas Yojana in detail:
Now that you have a clear understanding of the basic parameters, look at this tabular representation of income-specific requirements and available subsidised interest rates:
|Income Group||Household Income Per Annum||Available Interest Subsidy||Maximum Loan Amount|
|EWS||Below Rs. 3 lakh||6.50%||Rs. 6 lakh|
|LIG||Rs. 3 – Rs. 6 lakh||6.50%||Rs. 6 lakh|
|MIG I||Rs. 6 lakh – Rs. 12 lakh||4%||Rs. 9 lakh|
|MIG II||Rs. 12 lakh – Rs. 18 lakh||3%||Rs. 12 lakh|
Once you meet these eligibility requirements, you can go ahead and avail benefits of the Pradhan Mantri Awas Yojana Scheme.
Here are the steps you need to follow to acquire a home loan under this scheme:
Step 1: First, you need to figure out which income threshold you fall under and meet the necessary eligibility requirements according to that.
Step 2: You can use both online and offline methods to apply for this scheme. However, the online process is less time-consuming and hassle-free. You just need to visit the official PMAY website to obtain the application form.
Step 3: When you go to the ‘Citizen Assessment’ page on the website, choose the category that you wish to apply for.
Step 4: Now, you need to fill out the application form of PMAY to finally begin this procedure. Make sure you are providing all the accurate information and cross-check once you complete. You can further save all this information for future use and then go on and apply for a home loan under this scheme.
Navi provides home loans up to Rs. 10 crore, where the interest rate starts from 6.46%. You get the convenience of choosing a repayment tenure of up to 25 years to manage your EMIs smoothly. To check the applicable facilities and offers, download the Navi app!
Now that you know all the features and facilities of Pradhan Mantri Awas Yojana or Indira Gandhi Awas Yojana in detail, you can lower your repayment burden significantly. Because of the availability of interest rate subsidies, the overall cost of borrowing automatically comes down. However, make sure to look out for the associated charges when you apply for this scheme.
PLI stands for the primary lending institution under Pradhan Mantri Awas Yojana or PMAY. Basically, PLIs are the financial institutions providing you with the loan amount. Under PMAY, PLIs can sanction your loan only after confirming that you have not availed a home loan in the past.
A beneficiary can avail home loans with a tenure of 30 years if the primary lending institution allows it. However, the subsidies under CLSS (credit linked subsidy scheme) are available for a tenure of not more than 20 years.
There is no upper limit when it comes to home loan amount under PMAY. Nevertheless, subsidies will be available on loan amounts of up to Rs. 12 lakh for MIG II, Rs. 9 lakh for MIG I, and Rs. 6 lakh for EWS or LIG.
You can claim PMAY benefits for renovation only in certain situations. The property being renovated should either be a semi pucca or a kutcha house. Additionally, the property should require extensive renovation to qualify for such benefits.
The properties under construction which receive PMAY subsidy must be completed within 36 months or 3 years from the first disbursement’s release date. If the construction period exceeds this timeframe, your PLI will recover the subsidised amount and deposit it to Central Nodal Agency (CNA).
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