Shelter is one of the three basic needs of a human, which makes it important for us to have our own comfortable house. However, residential real estate could be astronomically expensive making it difficult for us to purchase our dream home. Which is why the government from time to time rolls out schemes to help the citizens fulfill their dream of buying a home. PM Awas Yojana is one such government initiative to facilitate affordable housing for all. Through PMAY, the beneficiaries get an interest subsidy on availing a loan to buy or construct a house. It is a credit-linked subsidy scheme that was launched on 1st June 2015.
What is PMAY?
The Pradhan Mantri Awas Yojana assists the beneficiaries to buy affordable homes without draining all their life savings. To avail benefit under this scheme, you need to fulfil certain conditions. You can avail this scheme for purchase of a new home, for home improvement and extension, and for house construction. This is a credit-linked subsidy scheme for consumers in the urban market that belong to economically weaker sections (EWS), Low Income Group (LIG) and Middle Income Group (MIG).
Who is eligible?
This scheme is mainly focused on people of economically weaker sections of the society. Accordingly, the most important eligibility criterion for this scheme is that the applicant or any of his/her family members should not own a pucca house at the time of applying for this scheme. The beneficiary under this scheme could include the applicant, his/her spouse, unmarried daughter and/or son. The eligibility of the PMAY is also dependent on the income groups as listed below:
| Income Group
|
Annual Household Income
|
| EWS | Up to Rs 3 Lakh |
| LIG | Rs 3.01 to Rs 6 Lakh |
| MIG 1 | Rs 6.01 to Rs 12 Lakh
|
| MIG 2 | Rs 12.01 to Rs 18 Lakh |
If you belong to EWS or MIG, a woman from the family should also be one of the property owners.
Features of Pradhan Mantri Awas Yojana
- This scheme covers all the urban areas of India including 4,041 statutory towns.
- Under this scheme, if the beneficiary chooses to avail the housing loan for a tenure of 20 years, he/she will get an interest subsidy at a rate of 6.50%.
- For the economically weaker sections and lower-income groups, the interest subsidy on home loan will be available for construction and acquisition of the house. The subsidy can also be availed for a home extension loan, for things like adding rooms, bathrooms etc.
- Whereas for middle-income groups, the interest subsidy is available only on home loan for purchase and construction of the house.
How can you apply for PMAY?
You can apply for this scheme by visiting the official website of PMAY. Once you visit the website, you will need to enter your Aadhaar number for verification under the citizen assessment tab. Once you get the verification, you will need to add the personal details in the application form and click save.
Documents needed for PMAY
To avail housing loan under PMAY, you will need to furnish the following documents –
- Passport size photograph
- KYC documents
- Aadhaar card/number
- Salary slip and bank statement, if you are a salaried employee
- Last two years of income tax returns for self-employed individuals
- Affidavit as proof of income
- Duly filled application form.
How to check if you are a beneficiary under PMAY scheme
- Visit the official website of PMAY
- Click on the ‘search beneficiary’ tab
- Enter your Aadhaar number
- Click on ‘show’
PMAY has been a significant contributor to providing affordable housing for the people of India. With simple rules and processes, it has helped people avail home loan for their dream home and live a life with dignity.