The Pradhan Mantri Awas Yojana Scheme plans to construct around 20 million houses by the end of 31st March 2022 PMAY housing scheme. This initiative aimed to provide affordable housing at a reasonable cost for Indian citizens.

Although the PMAY housing scheme was meant for the rural population, it was later reworked to benefit the urban community as well.

Here is a dualistic overview of everything there is to know about the Pradhan Mantri Awas Yojana policy.

A brief overview of PMAY scheme

The PMAY policy beneficiaries are as follows –

  • Economically weaker section (EWS).
  • Lower-income group (LIG).
  • Middle-income group (MIG–I).
  • Middle-income group (MIG–II).

The PMAY list consists of these four groups that are divided based on their annual income. After verifying their eligibility, the individuals have to apply for a home loan under the PMAY housing scheme policy. Upon successful registration, they will be offered subsidies on their home loan interest payments. 

PMAY Scheme Eligibility 

Irrespective of their income group, individuals should know PMAY eligibility criteria –

  • Individuals cannot own a pucca house anywhere in the country.
  • The property should be within any one of the PMAY scheme enlisted towns, according to census 2011.
  • Should abide by statutory city guidelines.

Eligibility for EWS and LIG –

  • Annual income between Rs.3 lakh and Rs.6 lakh. 
  • Borrowers should be less than 70 years of age at the end of the repayment period. 
  • Loan tenor up to 20 years.
  • A female family member has to be a joint owner or the sole owner of the property. 

Eligibility for MIG-I and MIG-II –

  • Annual income between Rs.6 lakh to Rs.12 lakh for MIG-I and between Rs.12 lakh and Rs.18 lakh for MIG-II.
  • It is suggested to have a female or at least an adult member as the sole/joint owner of the property.
  • Loan tenor up to 20 years, can be extended to 30years if the borrower is less than 70 years of age at the end of the repayment period.

Benefits of PMAY Scheme

Learn about the key PMAY benefits, based on the income group.

Benefits for EWS and LIG 

  • Subsidy on home loan interest 6.5% p.a.
  • Subsidy on home loan amount Rs.6 lakh. 
  • Subsidy on home loan interest amount Rs.2.67 lakh.
  • Entitles carpet area for EWS is 30 sq. m and LIG is 60 sq. m. 

Benefits for MIG-I & MIG-II, respectively –

  • Home loan interest subsidy 4% p.a. & 3% p.a.
  • Home loan amount subsidy Rs.9 lakh. & Rs.12 lakh.
  • Home loan interest amount subsidy Rs.2.35 lakh. & Rs.2.30 lakh.
  • Carpet area 160 sq. m. & 200 sq. m. 

Basic features of Pradhan Mantri Awas Yojana policy

The PMAY policy was created to provide housing for all at an affordable price. Besides granting subsidies on home loans, the scheme has a few basic features that aim to enhance the livelihood of people, easing their way to become homeowners. They are as follows –

  • During the construction of houses, mandatory use of eco-friendly building materials was required.
  • Ground floor living space has to be reserved for senior citizens and physically challenged individuals.
  • In the case of LIG and EWS, the policy encourages women to become the sole/joint owners of a property. This is done by making it mandatory for women to register as sole/joint homeowners.

Various housing finance companies offer the Pradhan Mantri Awas Yojana Loan for Indian citizens. Nonetheless, experts state that the verification process can take quite a while to complete PMAY housing scheme.

The PMAY scheme has provided Indian citizens with the resources to build a home for their own. The information provided should help you apply for the PMAY policy with relative ease.

Also Read: Do You Know About PMAY Scheme? Have A Look At Eligibility, Features And Benefits