The Pradhan Mantri Awas Yojana is a scheme that was brought to action by the government in June 2015. The goal of this scheme is to create affordable ‘housing for all’, equipped with all the facilities such as electricity, sanitation and sufficient water supply. The government brought out this initiative and put the schemes in place to support the weaker sections of the society. In order to promote affordable housing in time, the government has partnered with several private sector builders and agencies. You can avail the PM Awas Yojana scheme based on your income eligibility to gain from various benefits and enjoy subsidies on your Home Loan.
Here is all you need to know about PMAY.
You can Become Eligible via Easy PMAY Eligibility Criteria
In order to avail the facilities and benefits of Pradhan Mantri Awas Yojana scheme, you will first have to qualify for it based on your income standing. Here, the scheme puts forward sub-schemes based on household income as per your economic standing. Here is what you will have to see to qualify.
- In order to qualify for the Economically Weaker Section category (EWS) or Lower Income Group category (LIG) your annual household income should be between Rs.3-6 lakh.
- In order to qualify for Middle Income Group I category (MIG I) your annual household income should be between Rs.6-12 lakh.
- In order to qualify for Middle Income Group II category (MIG II) your annual household income should be between Rs.12-18 lakh.
Apart from this, will also have to abide by a few key points before you apply for PMAY. Remember that the scheme is put forward to support people who want to buy their own home, but are not capable of doing so owing to their income and economic standing. Thus, you cannot avail the scheme in case you already own a pucca house in your name anywhere in the country. Apart from that, using other government aided funding facilities to fund a home purchase, construction or renovation will also stop you from using PMAY to your credit.
You can Enjoy Credit-Linked Subsidies
Once you are deemed eligible for the scheme based on your financial standing, you can immediately claim Credit-Linked subsidies on the interest of your Home Loan. This allows you to save money on your Home Loan rates. However, remember that this subsidy is allowed on your loan for a tenor of 20 years.
In case your loan extends this tenor then you cannot claim subsidy beyond the 20 year mark. Alongside your formal income eligibility you should also know the subsidy claim eligibility based on the category you belong under the PMAY directives. Here, both the EWS/LIG category is allowed a subsidy of 6.5% on a Home Loan of up to Rs.6 lakh. On the other hand MIG I category is allowed subsidy of 4% on a Home Loan of up to Rs.9 lakh and MIG II category is allowed subsidy of 3% on a Home Loan of up to Rs.12 lakh
You can Buy Specific Carpet Area Homes to Enjoy PMAY Benefits
In a recent move, the government has announced an increase in the carpet area permissible under PMAY for two strata of the scheme. This improvement was brought in keeping in mind the scarcity of smaller homes in the Tier II and Tier III cities. According to the revision, if you belong to the MIG I categories then you are eligible to gain subsidies on homes with carpet area of up to 160 sq. m. which was earlier 120 sq. m.
Similarly, if you belong to the MIG II category then you are eligible to gain subsidies on homes with carpet area of up to 200 sq. m. which was earlier 150 sq. m. If you belong to the EWS/LIG category, you are eligible to gain subsidies on homes with carpet area of up to 30 sq.m for EWS and up to 60 sq. m. as LIG beneficiary.
Now, that you know all about the PMAY eligibility and the scheme benefits check out the other ways in which Pradhan Mantri Awas Yojana is trying to generate the affordable housing. Here are the key pointers:
- The schemes give special preference to women, weaker sections of the society, senior citizens, and transgender people.
- The schemes look to promote compulsory ground floor accommodation for senior citizens
- The schemes promote eco-friendly building material uses for the houses being built under PMAY directives.
- Pradhan Mantri Awas Yojana is applicable in 4304 cities across 35 states and union territories in India. You can find a house based upon the carpet area restrictions within your city or town limits based on the projects listed under each pocket.
Equipped with this information, you can now apply for PMAY and choose a lender of your choice listed with the scheme to get an affordable Home Loan. You can choose Bajaj Finserv in this regard, and get a Home Loanof up to Rs.3.5 crore for a tenor of up to 25 years.