What Is Pmay Scheme All About?

By Author: Kaivalya Borde
Total Articles: 5
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Pradhan Mantri Awas Yojana or PMAY is a credit linked subsidy scheme launched by India’s Prime Minister Narendra Modi in 2015. The scheme provides housing loans at cheap rates so that even the economically weaker section of society has a roof over their heads.

What is the goal of the PMAY scheme?
PMAY looks to provide an affordable solution for housing to all economically challenged families in India. The initiative’s goal is to ensure that every family in India has a house by 2022. PMAY scheme is targeted toward Economically Weaker Section (EWS), Low Income Group (LIG) and Middle-Income Group 1 and Middle-Income Group 2 (MIG)

When can a person seek PMAY finance?
The financial help is offered for the purchase of a new property or a resale. In some cases, the subsidy is also applicable for loans on construction of a house. If you already own a house and want to improve or extend it, you can apply for a PMAY. For instance, if you want to improve the condition of your kitchen, bathrooms or rooms, you can seek a PMAY subsidy ...
... on your loans.

Eligibility criteria for availing of PMAY scheme:

1. The determining factor for PMAY is your income group. Following is a look at different income groups in India who are provided help under the PMAY scheme:
• EWS Annual income of up to INR 3 lakh
• LIG- Annual income from INR 3.01 lakh to INR 6 lakh
• MIG 1- Annual income from INR 6.01 lakh to INR 12 lakh
• MIG II- Annual income from INR 12.01 lakh to INR 18 lakh

2. If you fall under either the EWS or LIG sections, a female of the family must be the owner of the property

3. The applicant and their dependents should not own any other house at the time of application of the scheme
Documents required for PMAY scheme:
Several documents are required for the application of the scheme:
• KYC papers including photographs
• Salary slip and updated bank statement for salaried individuals.

For self-employed people, the Income Tax Return (ITR) documents for the last two years must be submitted
• Affidavit/self-certificate as proof of income
• Additional application form
• Customer declaration undertaking

So, if you have a dream of owning your own home, this useful scheme from the Indian government can help you fulfil it.

About the author:

Kaivalya Borde is a financial expert by profession. In the spare time, he loves to write about financial products. Through his work, he has provided information on what the Pradhan Mantri Awas Yojana scheme is all about.