In June 2015, the Government of India took the initiative to offer affordable housing to financially backward urban and rural communities. This government-backed housing scheme is commonly known as the Pradhan Mantri Awas Yojana. As of December 2019, 1 crore houses were approved under this scheme.
Furthermore, this housing scheme provides interest subsidies for its beneficiaries on home loans. Upon fulfilling certain eligibility criteria, one can enjoy a home loan subsidy under this program.
Therefore, applicants must know everything about PMAY eligibility, beneficiaries and documents required before applying.
Beneficiary category
The beneficiary list under this scheme comprises of four categories as mentioned below:
- EWS
- LIG
- MIG I
- MIG II
These beneficiaries are eligible for interest subsidies under the Pradhan Mantri Awas Yojana scheme. However, the amount of subsidy one can avail of depends on some key factors. They are as follows:
- Annual income.
- Maximum carpet area of the house.
- House quality.
- Basic infrastructure.
EWS applicants with an annual household income of up to Rs.3 lakh and a maximum carpet area of 30 sq. m. can get interest subsidy at a rate of 6.50% on their home loans for a loan tenor of 20 years.
Moreover, several leading financial institutions offer a high value loan amount at lower interest rates. They also provide pre-approved offers for a seamless loan application process. Beneficiaries can check their pre-approved offers by submitting their names and contact numbers only.
Similarly, for LIG candidates, the annual income should be between Rs.3 lakh and Rs.6 lakh. The maximum carpet area should be 60 sq. m. These parameters will enable them to avail interest subsidy of up to 6.50% for a maximum tenor of 20 years.
Further, the MIG I category of beneficiaries is eligible for an interest rate subsidy of up to 4 % for a loan tenor of 20 years. Their annual income should be between Rs.6 lakh to Rs.12 lakh, and the maximum carpet area is 160 sq. m.
MIG II beneficiaries with an annual income between Rs.12 lakh and Rs.18 lakh and a maximum carpet area of 200 sq. m. can avail of interest subsidies up to 3% on their home loans for 20 years tenor.
Pradhan Mantri Awas Yojana eligibility
Beneficiaries must meet the following requirements to apply for the PMAY scheme:
- Either of the spouses or both in joint ownership are eligible for home loan subsidy under this scheme.
- For EWS and LIG candidates, a female head of the household should be the house owner. Alternatively, a unit must be under the name of a male head of the family and his wife. If a female member is not present in the family, the male head can own a house.
- None of the beneficiaries can own a pucca house anywhere in India.
- Applicants must not have a history of applying for any other central government-backed schemes.
After fulfilling these requirements, beneficiaries can check their names in the Pradhan Mantri Awas Yojana list. Selected candidates will qualify for PMAY urban or PMAY rural, depending on their applicable category.
Apart from eligibility, one must also be aware of the necessary documents required for a successful application.
Documents required for PMAY application
Beneficiaries should present the following documents while applying for this housing scheme:
- Identity proof
- Address proof
- Salaried individuals must present their salary slips or Form 16 as income proof. Self-employed beneficiaries should submit financial documents. Bank account statements and ITR files for the past two years is mandatory for both categories.
- Copy of property documents like allotment letter, developer payment receipt etc., are mandatory.
Other than these, a self-employed person might also need to present his/her proof of business existence and address, along with MOA if applicable.
Therefore, knowing all these factors about the Pradhan Mantri Awas Yojana scheme will benefit individuals planning to buy affordable houses.
