With the aim of helping citizens buy their own house, the government launched Pradhan Mantri Awas Yojana (PMAY) in 2015. Under this scheme, a beneficiary is eligible to get an interest subsidy on the home loan amount. With this initiative, the government plans on providing affordable houses to every eligible beneficiary by 2022.
If you are planning to buy a house, then PMAY can be of great help to you. Read this article to find out how.
The cost of real estate in cities has increased significantly. Due to this problem, many home buyers are finding it difficult to purchase a house. In order to reduce the financial burden of buying a house, the government announced a housing initiative called Pradhan Mantri Awas Yojana.
Under this scheme, the government provides an interest subsidy benefit on the home loan amount to the beneficiaries. The PMAY is linked to a few other initiatives in order to ensure homes have access to drinking water, a toilet, etc.
Eligibility Criteria of the PMAY
The beneficiaries of the scheme are categorised based on their annual household income. The interest subsidy benefit depends on the category a household belongs to.
The main categories of the PMAY are-
- Economically Weaker Section (EWS)
Households that have an annual income up to Rs. 3 Lakhs belong to this category. The beneficiary is eligible to receive an interest subsidy of 6.5%. The maximum loan tenure is 20 years. The maximum carpet area is 60 Sq. Mt.
- Low Income Group (LIG)
Households that have an annual income between Rs. 3 Lakhs and Rs. 6 Lakhs fall under the Low Income Group. The interest subsidy for beneficiaries under this group is 6.5%. The maximum loan tenure is 20 years. The maximum carpet area is 60 Sq. Mt.
- Middle Income Group I (MIG I)
Households that have an annual income between Rs. 6 Lakhs and Rs. 12 Lakhs belong to the MIG I category. The beneficiaries can avail an interest subsidy of 4%. Under this category, the maximum loan tenure is 20 years. The maximum carpet area is 160 Sq. Mt.
- Middle Income Group II (MIG II)
Households that have an annual income between Rs. 12 Lakhs and Rs. 18 Lakhs fall under this category. The beneficiaries are eligible to receive an interest subsidy of 3%. The maximum loan tenure is 20 years. Under this category, the maximum carpet area is 200 Sq. Mt.
In order to be eligible for the interest subsidy benefit, an applicant must meet a few other requirements-
- Any member of the household shouldn’t own a pucca house in the country.
- In order to be eligible, any member of the household shouldn’t have availed financial assistance from any other housing scheme from the government.
- In case of a married couple, the applicants are allowed to apply for joint ownership. However, the couple will receive a single subsidy.
Furthermore, by using a PMAY calculator, you can find out the subsidy amount you are eligible for.