Know About The Eligibility For Pmay Scheme

By Author: Rudra Raghavan
Total Articles: 4
Comment this article

In June 2015, Pradhan Mantri Awas Yojana (PMAY) was announced by the Ministry of Housing and Urban Poverty Alleviation. To meet the goal of housing for all, it is a Credit Linked Subsidy Scheme (CLSS). The program is designed to provide loans with highly subsidised interest rates to support housing construction, acquisition, expansion or growth in three segment categories: economically weaker segment (EWS), lower-income group (LIG) and middle-income group (MIG). The primary purpose of the PMAY scheme is to make loans for housing available and affordable to all. The amount of the subsidy is determined by the applicant's income requirements and the size of the property that needs funding.

The incentives for the various categories of income are as follows:

LIG/EWS category

The segments of low-income group (LIG) and economically weak section (EWS) can be recognized as those households whose annual income falls between INR 3 lakhs and INR 12 lakhs. The beneficiaries in this group are eligible to receive a 6.5 ...
... percent average interest subsidy. In order to seek this facility, it is mandatory that the building built or purchased should not go beyond the 60 square meter or approximately 645,83 square feet limits of the carpet area. The interest subsidy will be given on INR 6 lakhs maximum loan amount.

In 2017, as mentioned below, the PMAY scheme was proposed to middle income groups (MIG-1 and MIG-2).

MIG-1 category

MIG 1 includes those households whose income exceeds INR 6 lakhs per year but does not exceed INR 12 lakhs per year. Recipients belonging to the MIG-1 group are eligible to receive a maximum 4 percent interest subsidy under the stipulation that the property or house constructed, purchased or expanded does not extend beyond the 160 square meter or approximately 1,722,23 square feet carpet range. Under this subsidized interest scheme, the borrower can make use of maximum loan amount is INR 9 lakhs with a loan term of up to 20 years.

MIG-2 category

MIG 2 category includes households with an annual income of INR 12 lakhs but less than INR 18 lakhs. Under this category, recipients are eligible for a maximum 3 percent subsidy. The scheme makes it mandatory that houses built, expanded or purchased under this scheme should not go beyond the 200 square meter or around 2.152.78 square feet carpet range. The upper limit imposed under this form of subsidized interest on the amount of the loan is INR 12 lakhs. The period of tenure is up to 20 years.

Eligibility for Pradhan Mantri Awas Yojana

To take advantage of this scheme, the recipient and family members of the recipient must not own a pucca house anywhere in the country on behalf of any family member.

Either one of the partners or both together (joint ownership) are liable for a single subsidy when a married couple seeks the loan under the PMAY scheme.