The PMAY is an ambitious affordable housing initiative that aims to provide permanent housing units to all Indian citizens. It also aims to provide interest subsidies on home loans. If you are looking to apply for a home loan, the following guide will help you take advantage of the PMAY subsidy.
Since the Pradhan Mantri Awas Yojana or PMAY was launched in June 2015, thousands of home buyers in India have benefited from it. The government launched the initiative mainly with the aim to bridge the massive gap between the demand and supply of quality homes in India and uplift the living standards of the poor.
Under the PMAY scheme, the government aims to build more than two core new affordable housing units across urban and rural locations in India. The houses are to be allocated to the eligible beneficiaries through specific channels. Apart from building new houses, one of the most critical aspects of the Pradhan Mantri Awas Yojana that has been a huge hit among the people in India is the subsidy on the home loan interest rates.
By offering home loan interest subsidy, the government aims to make home buying affordable for all, especially for the people from the lower income groups. And, to ensure that every citizen gets maximum benefit from the subsidy scheme, the government has set a specific eligibility criteria for different people based on their income group.
The requirements for the PMAY subsidy varies depending on the income category – EWS, LIG, MIG – I and MIG – II.
For PMAY subsidy benefits under EWS and LIG category, you must meet the following requirements –
- The annual household income should not be more than 6 lakhs.
- The property you purchase must have a carpet area not exceeding 60 sq. meter.
- Your age at the time of applying for the subsidy must not be more than 70 years and the loan term must be up to 20 years.
The requirements for PMAY subsidy under MIG – I category include –
- The household income should be between 6-12 lakhs per annum
- The total carpet area of the property must not be more than 120 sq. meters
- You can avail the loan for a maximum of 20 years
- While there is no restriction on the amount you borrow, the subsidy benefits will be limited only up to Rs. 9 lakhs.
To get PMAY subsidy under the MIG – II category, you must meet the following requirements –
- Your total household income should be between 12-18 lakhs per annum
- You can apply for a home loan for a maximum term of 20 years
Apart from the income limitations, there are other requirements to get PMAY subsidy, which are listed below:
- You or any other family member should not own a permanent home in any part of India
- You or any of your family members must not have received financial aid through any other state or central government affordable housing scheme.
- You must mandatorily include a female member of the family as the co-owner of the property.
- If you are a married home loan applicant, you can either apply for the loan individually or jointly with your spouse.
Thus, knowing the eligibility requirement of the PMAY subsidy will help you to apply for the loan under the appropriate category and you can get maximum benefit from it.