Pradhan Mantri Awas Yojana – A roof for all

Pradhan Mantri Awas Yojana (PMAY) scheme is one of the most anticipated schemes of the Govt. of India, whose main aim is to construct housing projects at affordable rates. You can avail the benefits of buying homes with low interest rates, even if your parents have their own homes. The project aims to provide a roof to over 20 million urban poor people by the year 2022.

Under this, there is a Credit Linked Subsidy Scheme (CLSS) on home loans for properties in urban market belonging to Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group 1 & 2 (MIG). It can be availed for new or resale purchase of home, construction, or for extension or improvement of rooms, kitchen, toilet etc.

Eligibility

In order to avail subsidies on loan from the government, every applicant needs to meet the eligibility criteria set by the PMAY committee. Prospective applicants have been branched into four distinct groups:

Applicant Groups Eligibility Details
Economically Weaker Section (EWS) People who earn an annual household income less than
Rs.3 lakh come under the EWS category
Light Income Group (LIG) People who earn an annual household income ranging between
Rs.3 lakhs to 6 lakhs.
Medium Income Group (MIG1) People who earn an annual household income ranging between
Rs.6 lakhs to 12 lakhs.
Medium Income Group (MIG2) People who earn an annual household income ranging between
Rs.12 lakhs to 18 lakhs.

 

There are preferences given for Minorities and Women in EWS and LIG groups. The applicant or its dependents should be a first time home buyer and should not own a pucca property at the time of availing the scheme.

Benefits

The PMAY advantages can be availed by the individual who can take a loan for the construction of a house. You can avail the primary loan from any leading organization such as commercial banks, housing finance companies, cooperative banks etc. There won’t be any processing charge applicable under this scheme.

The subsidies offered is dependent upon the loan amount and the income group you fall in. Applicants with income up to Rs. 6 Lakhs can avail a maximum subsidy of Rs. 2.67 Lakhs for a home related loan. Applicants with income up to Rs. 12 lakhs can avail a maximum subsidy of Rs. 2.35 lakhs. Similarly applicants with income above 12 lakhs up to 18 lakhs can avail a maximum subsidy of Rs. 2.30 lakhs.

It has benefits for the builders as well and to avail them, the builders has to complete the housing project in 3 years.

Procedure for applying for PMAY Scheme

You can apply PMAY scheme online, or you can visit any bank or housing finance company and enquire about the Pradhan Mantri Awas Yojana scheme.

The documents required are very basic:

  1. Address proof documents & photograph
  2. Identity proof documents with photograph
  3. Aadhar Card
  4. Salary Slip or bank certified bank statements for salaried applicants
  5. Income tax returns of last two years and bank statement of 6 months for self employeds
  6. Affidavit of proof of income

There may be a few other requirements depending on the financial institution that you approach.

So, if you are interested in availing the benefits of PMAY, just start by deciding a location, a builder and a bank that will give you a home loan subsidy under CLSS.

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