With the aim to help Indian citizens buy a home, the Prime Minister of India launched the Pradhan Mantri Awas Yojana (PMAY) in 2015. It is a welfare initiative that allows a beneficiary to avail interest subsidy on a home loan. The subsidy is processed via two central nodal agencies- Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB).
Read on to find out the PMAY’s eligibility criteria.
Buying a home is difficult, especially for people living in cities. Therefore, in order to beat this problem, the Government of India announced the Pradhan Mantri Awas Yojana. Beneficiaries of this scheme can avail financial assistance to purchase or construct a house.
Who is Eligible for the Pradhan Mantri Awas Yojana?
In order to avail the interest subsidy, an applicant must meet the eligibility criteria of the scheme. The applicants are divided into four categories based on their income.
Economically Weaker Section (EWS)
- Applicants whose annual household income is up to Rs. 3 Lakhs fall under the Economically Weaker Section group.
- Beneficiaries can avail interest subsidy at a rate of 6.5% p.a.
- The maximum carpet area for EWS applicants is 30 Sq. Mt.
Low Income Group(LIG)
- Applicants with annual household income between Rs. 3 Lakhs and Rs. 6 Lakhs belong to Low Income Group.
- Under this category, beneficiaries are allowed to avail interest subsidy of 6.5% p.a.
- The maximum carpet area is capped at 60 Sq. Mt.
Middle Income Group I (MIG I)
- Applicants belonging to MIG I category can have an annual household income between Rs. 6 Lakhs and Rs. 12 Lakhs.
- For MIG I beneficiaries, the government offers a subsidy of 4% p.a.
- An applicant is allowed to buy a home with a carpet area of 160 Sq. Mt.
Middle Income Group (MIG II)
- Applicants with annual household income between Rs. 12 Lakhs and Rs. 18 Lakhs fall under MIG II category.
- Beneficiaries can avail a subsidy of 3% p.a.
- For this category, the maximum carpet area is capped at 200 Sq. Mt.
In order to avail the subsidy benefit, every applicant must provide income proof. Also, individuals who want to be eligible for the PMAY must hold a valid Aadhaar card.
Other Eligibility Requirements
- No pucca house should be owned by the applicant or any of the applicant’s family member.
- Differently abled citizens and senior citizens will be given preference for ground floor housing.
- A married couple can apply for joint ownership. However, in such a case, the couple will only be eligible for a single subsidy.
- In order to be eligible for the PMAY, the applicant or any of the applicant’s family member shouldn’t have availed financial assistance under any housing scheme from the central or state government.
- Applicants belonging to scheduled tribes and castes are also eligible.
How to Apply for the PMAY Online
- Go to the PMAY website (http://pmaymis.gov.in/)
- Click on ‘Citizen Assessment’ option.
- Select the group you belong to- ‘For Slum Dwellers’ or ‘Benefit Under Other 3 Components’
- Enter your Aadhaarcard number.
- Then you will be redirected to the application page.
- Enter your personal details, income details, current residential address, and bank account details.
- Click ‘I am aware’ option at the end of the page. Then click the ‘Save’ button.
- After clicking the ‘Save’ button, you will see a system generated application number. You must save this number.
- Print the application.
- You must submit this form at the nearest CSC office along with the required documents.