Having an own home is one of the most long-craved goals of many people’s lives. But it is not affordable to buy or build a home of your choice if you are from poor sections.
It is where the Pradhan Mantri Awas Yojana (PMAY) comes into the picture. Yes, the PM Awas Yojana is a housing scheme of the Central Government of India.
The PMAY is headed by Prime Minister Narendra Modi. If you want to know more about the PMAY, this post is for you!
What is the Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana is a housing scheme of the Union Government of India. It intends to provide shelter to the downtrodden and poor population of the country.
Under the PMAY plan, around 2 crore low-cost homes are being constructed across India’s rural and urban belts. It is being done using eco-friendly and sustainable technologies.
Besides this, the PM Awas Yojana also has a provision to provide subsidy on home loan interest rate. It is up to 6.5% and Rs.2.67 lakh depending on your income categories. Anyone earning an annual income between Rs.3 lakh and Rs.18 lakh are entitled to apply for the PMAY home loans.
This facility is available for PMAY’s Credit Linked Subsidy Scheme (CLSS).
But the applicant or the beneficiary family must not have any pucca home anywhere in India. A beneficiary family is one consisting of a husband, wife, unmarried daughters and sons. It is also not possible to enjoy the PMAY scheme benefits on an already built home.
Also, once the PMAY home loan is availed, it must be used to buy or build a home within 3 years of the disbursement of the 1st instalment.
Who can avail of the Pradhan Mantri Awas Yojana subsidy?
Different income groups belonging to diverse categories can enjoy the PMAY subsidy benefits. Let’s take a look:
1) Economically Weaker Section (EWS)
Applicants/households earning a yearly income of up to Rs.3 lakh are eligible. The subsidy amount is Rs.2.67 at 6.5%. The maximum home loan amount is up to Rs.6 lakh, with the home’s carpet area being 30 sq. mt.
2) Lower Income Group (LIG)
All conditions for the Lower Income Group (LIG) applicants are the same as EWS except the income bracket and home’s carpet area. LIG customers/households need to earn an annual income between Rs.3 lakh and Rs.6 lakh. The carpet area of the home should be a maximum of 60 sq. mt.
3) Middle Income Group 1 (MIG 1)
Middle Income Group 1 applicants are those who are earning an amount between Rs.6 lakh and Rs.12 lakh per year. MIG 1 applicants can apply for a maximum home loan amount of up to Rs.9 lakh. This way, they can avail of the PMAY subsidy at 4% to Rs.2.35 lakh. The carpet area of the new home should be a maximum of 160 sq. mt.
4) Middle Income Group 2 (MIG 2)
If your or your household’s annual income is between Rs.12 lakh and Rs.18 lakh, you belong to the Middle Income Group 2 (MIG 2). In this case, the maximum home loan amount you can apply for is up to Rs.12 lakh. The maximum home loan interest rate subsidy is up to Rs.2.3 lakh at 3%. The maximum carpet area of the home is eligible for the subsidy amount is up to 200 sq. mt.
The home loan tenor for all income categories is up to 20 years.
If you wish to build or buy your affordable home in your city, you can apply for the Pradhan Mantri Awas Yojana. This way, you can save on interest charges and manage lower EMIs.