Purchasing the house of your dreams is now easy with the launch the Pradhan Mantri Awas Yojana (PMAY). It is a scheme launched by the Government of India, with the objective of “Housing for All”, to provide affordable housing to the eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. The scheme was launched on 25th June 2015 with an intention to provide housing by constructing 20 million houses across the nation by 2022.
Based on the areas that it caters to, this Yojana has two parts – Urban and Gramin, where the latter caters to the village areas, the former will help you buy a house in urban India.
Who is eligible for Pradhan Manti Awas Yojana?
The scheme is primarily aimed at providing housing for all. So if a house is already owned by an individual or any of his family member, then that individual is kept out of the benefits of PMAY.
As per the norms laid by the Government of India:
- A female must be the owner or co-owner of the property.(Not mandatory for MIG-I & II)
- The Beneficiary family should not own a pucca house in India.
- Property’s location must be within the 2011 census statutory towns.
- The applicants should not have availed any benefits of any other housing scheme by the State or Central Government of India.
- You must fall into any of the following Four income groups:
- Economically Weaker Section (EWS): Annual income not exceeding Rs. 3.0 Lacs
- Low Income Group (LIG): Annual income between Rs. 3.0 Lacs and Rs. 6.0 Lacs
- Middle Income Group I (MIG I): Annual income between Rs. 6.0 Lacs and Rs. 12.0 Lacs
- Middle Income Group II (MIG II): Annual income between Rs. 12.0 Lacs and Rs. 18.0 Lacs
Affordable Houses through PMAY’s Credit Linked Subsidy Scheme (CLSS):
The CLSS provides subsidies on the interest payable on your home loan. There are four schemes under CLSS, which are as follows:
- CLSS – EWS / LIG
- Revised CLSS – EWS/LIG
- CLSS (MIG-I)
- CLSS (MIG-II)
1. CLSS-EWS/LIG
Interest Subsidy Rate: 6.50%
Maximum Loan Term: 15 years or actual tenor of the loan, whichever is lower
Maximum Loan Amount for Subsidy: Upto Rs 6.00 Lacs
Maximum Subsidy Amount: 2.2 Lacs ( approx)
Annual Household Income: Applicants must belong to either LIG (annual income upto Rs. 3.00 lacs ) or EWS (annual income between Rs. 3.00 lacs to Rs. 6.00 lacs)
Carpet Area of the House: Upto 30 sq. mts. for EWS beneficiaries and upto 60 sq. mts. for LIG beneficiaries
Application Validity: 17th June 2015 to 31st March 2022
Woman Ownership: Yes (except for construction)
2. Revised CLSS-EWS/LIG:
All the features of this scheme is same as the CLSS_EWS/LIG, except for:
Maximum Loan Term: which has been increased to 20 years or actual tenor of the loan, whichever is lower
Maximum Subsidy Amount: It has been raised to Rs 2.67 Lacs ( approx)
3. CLSS (MIG-I)
Interest Subsidy Rate: 4 %
Maximum Loan Term: 20 years or actual tenor of the loan, whichever is lower
Maximum Loan Amount for Subsidy: Upto Rs 9.00 Lacs
Maximum Subsidy Amount: Rs 2.35 Lacs ( approx)
Annual Household Income: Annual income between Rs. 6.0 Lacs and Rs. 12.0 Lacs
Carpet Area of the House: Upto 160 sq. mts.
Woman Ownership: Not Mandatory
4. CLSS (MIG-II)
Interest Subsidy Rate: 3 %
Maximum Loan Term: 20 years or actual tenor of the loan, whichever is lower
Maximum Loan Amount for Subsidy: Upto Rs 12.00 Lacs
Maximum Subsidy Amount: 2.30 Lacs ( approx)
Annual Household Income: Annual income between Rs. 12.0 Lacs and Rs. 18.0 Lacs
Carpet Area of the House: Upto 160 sq. mts.
Woman Ownership: Not Mandatory
How to apply for this PMAY Scheme?
Beneficiaries can apply for PMAY through the following:
Online
Individuals can visit the official website of the scheme to apply online. They need to have a valid Aadhaar Card to apply
Offline
Beneficiaries can apply for the scheme offline by filling up a form available through Common Service Centre (CSC). Price of these forms is Rs. 25 + GST.
Is Pradhan Mantri Yojana available to existing home loan borrowers?
Existing home loan borrowers are eligible for this scheme provided they fulfil all the relevant eligibility criteria.
In order to claim subsidy under PMAY, your home loan should have been approved on or after January 1, 2017 and the scheme is valid till March 31, 2022 in case of EWS/LIG segments and March 31, 2020 for MIG segments. Subsidy does not have to be claimed by you in person; it will be taken care of on your behalf by the home loan provider. All you need to do is file a declaration confirming that you meet the eligibility criteria. On successful application, the lending institution will make the claim on your behalf and complete all the requisite formalities. Once the nodal agency such as the National Housing Bank approves the loan subsidy, the amount will be automatically credited to your home loan account upfront.
Disclaimer:
*The Details mentioned above are based on the scheme framed by the Government of India under the Pradhan Mantri Awas Yojana. These are subject to change as and when there is a change in the scheme by the Government of India.