Housing is a primary need of a human. However, not every person is economically so well off that they can afford to buy a house for themselves or even have space in their monthly budget to accommodate the EMIs of home loan. Thus, it becomes difficult for them to sustain their dream of having their own house. In such a case, schemes like Pradhan Mantri Awas Yojana can be of great help.
Under the Pradhan Mantri Awas Yojana, the government provides subsidy on the interest of a home loan. Through PMAY, the government intends to achieve the target of providing 2 crores affordable housing units by 2022. The scheme is divided into two parts, PMAY-U for urban and PMAY-G for rural areas. It was started in the year 2015 to help economically weaker sections and middle-income sections of the society in having their own house in the range of affordable housing.
Pradhan Mantri Awas Yojana Eligibility Criteria:
There are certain criteria established by the government to ensure that only the right people get the benefit under the scheme, and it is not misused by the higher income group. The Pradhan Mantri Awas Yojana eligibility criteria are:
- It is available to people who are in the Low Income Group (LIG) category which includes families with an annual income of Rs 3 lakhs to 6 lakhs.
- The Economically Weaker Sections (EWS) of the society includes families with an annual household income of up to Rs. 3 lakhs.
- The Middle Income Group is divided into two parts MIG-I and MIG-II. The MIG collectively includes families with annual household income from Rs. 6 lakhs to Rs. 18 lakhs.
- The subsidy is also provided where the woman is the primary applicant.
- Additionally, in order to avail the benefit under the PMAY scheme, the families must not own any other house, and they should not have availed any housing scheme benefit from any other government.
With PMAY, you can get a subsidy on your home loan interest. You can enrol for the scheme and then apply for the home loan with any bank that is within the shortlisted list of lenders under PMAY.
The Process of Applying for the PMAY is:
- First of all, check your eligibility for the scheme. For which you must be able to prove that your annual household income is not more than Rs. 18 lakhs. If you can prove that, then the next step is to identify the category in which you reside. The subsidy under the Pradhan Mantri Awas Yojana will be decided based on your category.
- After you identify the category, you can apply for the home loan through any bank or NBFC, which is authorized under the scheme to carry out its proceedings.
- Apart from applying for a home loan, you must also apply for the PMAY scheme by filling the form online. Make sure to fill all the required details correctly.
- The subsidy will be enclosed with other loan documents when you apply for the loan. Make sure all the documents are correct and signed wherever required.
The bank accepts the subsidy benefit from the government on your behalf and then transfers the benefit into your account. It can also be the case that initially you would have to pay the whole EMI, and when your application for PMAY gets accepted, the EMI would eventually reduce.
Having a house of your own is a dream of every person. A roof over the head is a basic need, and it becomes sweeter when you know that it is permanent. However, not all people are economically well off to purchase their own house, and some even find it difficult to cover the home loan EMI. Thus, the government in 2015 introduced Pradhan Mantri Awas Yojana under which subsidy on home loan interest is provided to people who fit the eligibility criteria.
The Pradhan Mantri Awas Yojana eligibility criteria are:
- Economically weaker sections (EWS) with annual household income not more than Rs. 3 lakhs.
- Lower Income Group (LIG) with annual household income between Rs. 3 lakhs to Rs. 6 lakhs.
- Middle Income Group (MIG-I and MIG-II) with annual household income between Rs. 6 lakhs to Rs. 18 lakhs.
- Also, the applicants should not own any house at the time of applying and nor should they have taken any benefit under the housing scheme from any other government.
The process to apply for PMAY is as follows:
- Check your eligibility for the scheme and see in which category you belong to.
- Next, you need to apply for the home loan from any bank or NBFC, which is within the authorized list of PMAY to implement the scheme.
- After that, you need to apply for the PMAY by filling the online form.
- Make sure all the necessary documents related to the home loan are properly submitted with the lender along with the PMAY subsidy form after signing it.