Everything to Know About PMAY Scheme

The Pradhan Mantri Awas Yojana (PMAY) scheme is an initiative launched by the Indian Government. Its initial goal was to provide affordable housing solutions for the economically weaker sections (EWS) and lower-income groups (LIG) of the Indian demography. In 2018, the policy was reworked to incorporate the middle-income groups as well.

The PMAY scheme aims to provide housing solutions by granting subsidies between 3% and 6.5% on home loans. These interest rate subsidies are based on the annual incomes of the consumers, along with a few other pre-existing conditions.

Here is all the necessary information to help you check whether or not you can avail of the Pradhan Mantri Awas Yojana scheme.

Detailed list of the benefits

A total budget of Rs.6,500 crore was allotted for PMAY’s Credit Linked Subsidy Scheme (CLSS) in 2018. Here is a detailed breakup of the eligibility categories as well as the eligible benefits each category can avail –

• Economically Weaker Section (EWS)
• Annual income- Rs.3 lakh.
• Eligible home loan amount- Rs.6 lakh.
• Subsidy rate & maximum subsidy amount- 6.5% and up to Rs.2.67 lakh.
• Maximum carpet area- 30 sq.m.
• Lower Income Group (LIG)
• Annual income- Rs.3 lakh to Rs.6 lakh.
• Eligible amount- Rs.6 lakh.
• Subsidy rate & maximum subsidy amount- 6.5% and up to Rs.2.67 lakh.
• Maximum carpet area- 60 sq.m.
• Middle Income Group-I (MIG-I)
• Annual income- Rs.6 lakh to Rs.12 lakh.
• Eligible amount- Rs.9 lakh.
• Subsidy rate & maximum subsidy amount- 4% and up to Rs.2.35 lakh.
• Maximum carpet area- 160 sq.m.
• Middle Income Group-II (MIG-II)
• Annual income- Rs.12 lakh to Rs.18 lakh.
• Eligible amount- Rs.12 lakh.
• Subsidy rate & maximum subsidy amount- 3% of up to Rs.2.30 lakh.
• Maximum carpet area- 200 sq.m.

How to apply for the Pradhan Mantri Awas Yojana Scheme?

If you want to avail of a home loan under the PMAY scheme, you have to register yourself as an eligible applicant from the official website. Here are the steps to do so –

• Visit the official website, refer to the ‘Citizen Assessment’ option and choose ‘Benefit Under Other 3 Components’.
• In the new window, enter your Aadhaar ID and your name according to your Aadhaar card.
• Fill up the form accordingly, enter the captcha and ‘Save’ it.

However, the online application is not applicable if your income is above Rs.50,000 per annum. For urban residents to avail of a house under PMAY, they will have to contact the bank directly to apply under the CLSS MIG policy.

Documents required for PMAY verification

List of documents needed for PMAY verification are as follows:

• Correctly filed PMAY application.
• Identity and address proof(Aadhaar/Voter/PAN)
• Income certificate along with the latest IT return.
• Bank account statement for the last 6 months.
• NOC from any housing society.
• An affidavit stating that neither you nor your family owns a house in India.
• Valuation certificate and construction agreement.
• Approval of construction

PMAY objectives and goals

There are 4 distinct benefits of the Pradhan Mantri Awas Yojana policy:

• It encourages women to become homeowners.
• Constructs building using eco-friendly materials.
• Ground floor accommodations are mandatorily reserved for senior citizens.
• Enables citizens in the urban region to also benefit from this program, under the CLSS policy.

Important note for CLSS eligible individuals

It can be advised that the perfect time to buy your dream home under the CLSS scheme is before 31st March 2020. It is believed to be the last extension from the government, and no further notice has been published to the states otherwise. 

The PMAY scheme offered by Housing Finance Companies makes it easier to manage home loans due to the subsidized rates. A reputed HFC, Bajaj Housing Finance Limited additionally provides pre-approved on home loans which make the loan application process easier and less time-consuming. Check your pre-approved offers by submitting only your name and phone number.

Many individuals benefitted from the Pradhan Mantri Awas Yojana scheme. Thanks to the subsidized rates, citizens throughout the country now have access to cheaper and more affordable ways of building their dream homes.