Indira Gandhi Awas Yojana: Features, Advantages And Eligibility Criteria

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!

What Are the Features and Advantages of PMAY?

Here are all the salient features and benefits of this government-backed scheme:

• Under the PMAY scheme, the Central Government will be replacing the kutcha houses that are still available in some rural areas of India with permanent concrete houses. The main purpose is to build houses that will not be destroyed by floods, rain, or other natural calamities. 
• The scheme allows eligible individuals to get subsidies on the rate of interest of their home loans. The rate of subsidy will depend on the income category one belongs to and the size of the property that he/she purchases. 
• Individuals applying for loans under PMAY get to choose a repayment tenure of up to 20 years and repay conveniently. Choosing a longer repayment tenure automatically lowers the equated monthly instalment amount. This further helps borrowers to manage their finances better.
• Under this scheme, eco-friendly materials are used to construct these houses. 
• As per PMAY clauses, female ownership or co-ownership of the house that will be built under this scheme is mandatory for LIG and EWS categories. 
• Beneficiaries who are differently-abled or senior citizens will get compulsory housing accommodation. 

To make use of these features and perks, individuals should know about the components of Indira Gandhi Awas Yojana in detail. 

Also Read: A Quick Guide To Home Loan Application Process

What are the Components of PMAY?

There are two major components of Indira Gandhi Awas Yojana or Pradhan Mantri Awas Yojana (PMAY) — PMAY-U and PMAY-G. 

Pradhan Mantri Awas Yojana – Urban

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). 

Pradhan Mantri Awas Yojana – Gramin

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. 

What Are the Eligibility Parameters for PMAY?

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:

• Indian citizens will only be able to apply for the PMAY scheme. Note that people belonging to scheduled tribes can also avail the benefits.
• Individuals who already own a residential property will not qualify for this particular scheme.
• In case someone has already made use of the benefits of PMAY, he/she cannot apply for it again.
• The household income range should be between Rs. 6 lakh and Rs. 18 lakh to be eligible for this scheme.

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.

Also Read: What Are The Documents Required For Home Loans?

What Is the Process to Avail Subsidy under PMAY?

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!

Final Word

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.  

Frequently Asked Questions 

What do you mean by PLI?

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. 

Can I avail a home loan for 30 years and still acquire CLSS benefits?

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. 

What is the maximum home loan amount that I can avail under PMAY?

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. 

Can I avail PMAY benefits when renovating an owned property?

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. 

What will happen if PMAY subsidy has been disbursed but house construction stalls?

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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