The government of India launched Pradhan Mantri Awas Yojana or PMAY in June 2015 to make housing affordable for the economically weaker section of the country. Under this scheme, eligible applicants can claim a subsidy on their home loan interest rate, which they had taken out to finance their first house.
Note that the interest subsidy amount varies among the different economic categories under Pradhan Mantri Awas Yojana.
The affordable housing scheme is divided into two categories –
This housing scheme involves the construction of nearly 20 million affordable houses by March 31, 2022.
Here is a tabular representation of the criteria that one needs must fulfil to get benefits of PMAY:
|Parameters||MIG 1||MIG 2||EWS and LIG|
|Eligible household income||Rs. 6 lakh to Rs. 12 lakh||Rs. 12 lakh to Rs. 18 lakh||Up to Rs. 6 lakh|
|Subsidy on Interest rate||4.00%||3.00%||6.5%|
|Amount eligible for interest subsidy||Rs. 9 lakh||Rs. 12 lakh||Rs. 6 lakh|
|Purpose of home loan||Self-construction or purchase||Self-construction or purchase||Self-construction or purchase or extension|
|Maximum amount of subsidy||Rs. 2.35 lakh||Rs. 2.30 lakh||Rs. 2.67 lakh|
|Female ownership||Not necessary||Not necessary||Required but not necessary for construction or extension|
These are the four major components of PMAY:
Under CLSS, eligible candidates can avail of home loans at reduced EMIs owing to an interest subsidy. Individuals belonging to the EWS and LIG categories can get a maximum interest subsidy of 6.5%. However, note that such benefit is available only if the loan amount does not exceed Rs. 6 lakh.
This scheme aims to rehabilitate slums and provide houses to lower-income families residing in those areas. Note that the Central Government determines the property prices, while the respective states or Union Territories decide the beneficiary’s contribution to the price.
AHP offers financial aid of up to Rs. 1.5 lakh to EWS families on behalf of the Central Government to purchase a house.
This PMAY component targets families of economically weaker sections who cannot benefit from the other three components. These beneficiaries receive financial aid of up to Rs. 1.5 lakh from the Central Government to fund the construction of or renovate their existing houses.
Here are the top features of the Pradhan Mantri Awas Yojana:
That said, let us check the benefits of this credit-linked housing scheme.
These are among the primary benefits of Pradhan Mantri Awas Yojana:
Take a look at the below table to find out more about the accompanying benefits across different income categories:
|Category||Annual Household Income||Loan Amount||Carpet Area||Subsidy|
|Economically Weaker Section (EWS)||Up to Rs. 3 lakh||Up to Rs. 3 lakh||Up to 30 square metres||6.5%|
|Low Income Group (LIG)||A maximum of Rs. 6 lakh||Up to Rs. 6 lakh||A maximum of 60 square metres||6.5%|
|Middle Income Group I (MIG-I)||A total of Rs. 12 lakh||Up to Rs. 9 lakh||Up to 160 square metres||4%|
|Middle Income Group II (MIG-II)||Up to Rs. 18 lakh per annum||Up to Rs. 12 lakh||A maximum of 200 square metres||3%|
Note that individuals who wish to buy their first house or plan to construct a housing property can avail the benefits extended under PMAY. Additionally, those who wish to upgrade from a kutcha house to a pucca house can do so under the scheme’s CLSS component.
You have to follow the given steps to apply for PMAY scheme online:
Visit the PMAY website and log in using your credentials
Select ‘Citizen Assessment’ and choose from the available options – ‘For Slum Dwellers’ or ‘Benefits under other 3 Components’
Provide your Aadhaar number in the next step.
On the redirected page, you have to fill out the application form with details such as name, contact number, income details, and bank account details.
After filling out the form, enter the CAPTCHA code and click on ‘Save’.
You can take a print out of the application form.
If you want you can also apply for PMAY offline. To apply offline you have to go to a Common Service Centre. There, you will get the application form which you have to fill out and submit with a payment of Rs. 25 plus GST.
There are additional requirements besides meeting the annual household income threshold to qualify for Pradhan Mantri Awas Yojana. Only those who do not own a pucca house or have not availed benefits under other affordable housing schemes are eligible for PMAY.
Additionally, provisions have been made for widows, differently-abled individuals, transgender people, and senior citizens.
First-time homebuyers who do not meet the Pradhan Mantri Awas Yojana eligibility criteria can download the Navi App and avail of a home loan. We offer a high loan amount at the lowest rates, backed by quick processing time. Collectively, these make the borrowing experience simple and hassle-free.
Subsidy criteria for different income groups for PMAY are discussed below:
Pradhan Mantri Awas Yojana (Urban) or PMAY-U is an initiative taken by the Central Government for all the different income groups. It has different criteria and limits set for the different groups. The scheme is being implemented by the Ministry of Housing and Urban Affairs; it aims to provide housing to all the eligible Indian households by the year 2022 as the nation completes its 75th year of Independence.
Benefits of PMA-U:
Pradhan Mantri Awas Yojana- Gramin is introduced with a mission to provide affordable “Housing for All” by the end of the year 2022. The houses provided under this scheme have the basic amenities like electricity, water and gas connection and are eco-friendly. The minimum size of a house has been increased from 20 sq. m. to 25 sq. m.
Apart from reducing the GST from 12% to 8% for all the house loans under PMAY, there are also other tax benefits one can avail under sections of the Income Tax Act.
PMAY scheme offers affordable housing for all. It provides a subsidy on the interest paid which reduces the EMI payments. The following are some guidelines one should keep in mind before availing benefits of the scheme:
To become a beneficiary under PMAY scheme, an individual has to fulfil the following criteria:
Individuals can choose to apply for PMAY online by following these steps:
To apply for PMAY offline, individuals need to visit a Common Service Centre (CSC) in their state or union territory. There, they need to submit the duly signed application form along with the required documents to complete the application procedure.
Under Pradhan Mantri Awas Yojana, the housing loan interest subsidy is routed via two nodal agencies, namely: National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO).
PMAY EMI calculator is the subsidy calculator. It will help you know your subsidy eligibility and also help you calculate your EMIs beforehand so that you can manage your finances accordingly. You will need the following details to use PMAY EMI calculator:
Pradhan Mantri Awas Yojana is an initiative to provide affordable housing to lower economic groups in India. Individuals who wish to own a house but could not do so due to lack of funding can now opt for a housing loan at a subsidised rate of interest under the PMAY scheme. To ensure hassle-free processing of the same, it is important for intending borrowers to keep the pointers discussed above in mind.
Ans: No, a person cannot apply for Pradhan Mantri Awas Yojana twice as the applicant’s account will be linked with his/her Aadhaar Card.
Ans: When applying for PMAY through an online portal, you do not need to pay any registration charge. However, if you choose the offline route, you have to pay Rs. 25 + GST as registration fee.
Ans: No, only first-time homebuyers who meet the qualifying criteria can become a beneficiary of PM Awas Yojana and claim subsidy on the loan interest rate.
Ans: Existing borrowers can qualify for PMAY, given they meet all the accompanying requirements and eligibility criteria.
Ans: Women ownership is not mandatory for the MIG-I and II categories. However, in the case of properties for EWS and LIG, woman ownership is mandatory, i.e., the new or existing property should be either in the name of or co-owned by an adult female family member.
Ans: No, only one member of a family will be eligible. To eliminate the risk of duplication, beneficiary family members have to submit their Aadhaar numbers when availing of a loan.
Ans: Yes, there is a maximum repayment tenure of 20 years for the PMAY scheme.
Ans: If you apply online for PMAY scheme, it is free. But if you visit a Common Service Centre for the application process, you have to pay a fee of Rs. 25 plus GST.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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