Pradhan Mantri Awas Yojana: All you must know

Pradhan Mantri Awas Yojana: All you must know

Pradhan Mantri Awas Yojana (PMAY) is an important flagship mission taken up by the Indian Government in the year 2015 under the mission “Housing for All” to enhance homeownership amongst the eligible populace. As per the Pradhan Mantri Awas Yojana (PMAY) scheme, first time home seekers can use subsidies on the home loan for the building, renovating, purchasing, or making the other extensions. You must check out the crucial eligibility criteria that the potential beneficiaries should mitigate to get the benefits of the PMAY scheme.

Features and benefits of PMAY (Pradhan Mantri Awas Yojana)

       As per the PMAY scheme, beneficiaries avail of the subsidy interest at 6.5 percent p.a. on the home loans for a maximum duration of twenty years.

       Preference for ground floor allocation is provided to the senior citizens.

       Housing is done using eco-friendly and sustainable materials.

       Scheme covers about 4041 statutory towns wherein 500 class-I cities are endowed top priority.

Primary beneficiaries of the PMAY scheme

       MIG I (Middle Income Group I)

       MIG II (Middle Income Group II)

       LIG (Lower Income Group)

       EWS (Economically Weaker Section)

Seekers from ST (scheduled tribe), SC (scheduled caste) and OBC (other backward class) categories and women from LIG and EWS income groups can simply apply for the PMAY eligibility.

PMAY eligibility 2022 for LIG and EWS

       Applicant’s annual household income should be Rs 3 lakh for the EWS (economically weaker section) and between Rs 3 lakh and Rs 6 lakh for the LIG (lower income group).

       Applicants must be given the home loan amount of nearly up to Rs 6 lakh for the interest subsidy for a maximum loan duration of twenty years. The non-subsidized Best Home Loan Interest Rates will be applicable on the exceeding amount.  

       Dwelling unit carpet area, i.e., the square meter will be up to 30 square meters for the EWS (economically weaker section) and up to 60 square meters for LIG (lower income group)

       Scheme does not allow up-gradation or renovation of the pucca house.

       Co-ownership or ownership of women isn’t required for an existing property but is a must for the new possession.

       Rs 3,000 is paid in a lump sum for every home loan application approval.

       Maximum subsidy equaling Rs 2.67 lakh is provided to eligible applicants.

       Beneficiaries must not undertake any financial assistance from the State Government of India’s Central.

       Holding an Aadhaar card is necessary for every home loan applicant.

Major highlights of the Pradhan Mantri Awas Yojana (PMAY) eligibility 2022 for the LIG and EWS

Particulars LIG EWS
Annual income Rs 3 lakh – Rs 6 lakh Rs 3 lakh
The maximum home loan amount for interest subsidy Up to Rs 6 lakh Up to Rs 6 lakh
Maximum loan tenure 20 years 20 years
Net usable home area Mandatory for a new possession Mandatory for a new possession
The lump-sum payment amount for every approved home loan application Rs 3,000 Rs 3,000
Approval for building design & availability Mandatory Mandatory
The maximum interest subsidy amount Rs 2.67 lakh Rs 2.67 lakh

PMAY (Pradhan Mantri Awas Yojana) eligibility 2022 for the MIG II and MIG I

       Applicant’s household income must range anywhere between Rs 6 lakh and Rs 12 lakh for the MIG (middle-income group) I and between Rs 12 and Rs 18 lakh for the MIG II (middle-income group II).

       Applicants will be provided with a home loan amount of up to Rs 9 lakh (MIG I) & up to Rs 12 lakh for MIG II for interest subsidy for a maximum period of twenty years. The non-subsidized rates are applicable on additional amounts.

       Dwelling unit carpet area (square meter) is up to 160 square meters for MIG I and nearly up to 200 square meters for MIG II.

       Women’s co-ownership/ownership is not required.

       Rs 2,000 would be paid in a lump sum for every approved home loan application instead of processing charges.

       Maximum subsidy of about Rs 2.67 lakh is provided to eligible applicants.

       Having an Aadhaar card is mandatory for every applicant.

Major highlights of PMAY (Pradhan Mantri Awas Yojana) eligibility 2022 for LIG and EWS

Particulars MIG II MIG I
Annual income Between Rs 12 lakh and Rs 18 lakh Between Rs 6 lakh and Rs 12 lakh
The maximum home loan amount for the interest subsidy Up to Rs 12 lakh Up to Rs 9 lakh
Maximum loan repayment period 20 years 20 years
Net usable home area Up to 200 square meters Up to 160 square meters
Women co-ownership/ownership Not mandatory Not mandatory
The maximum interest subsidy amount Rs 2.67 lakh Rs 2.67 lakh
The lump-sum payment amount for every approved home loan application Rs 2,000 Rs 2,000
Approval for forming designs & availability of civic amenities like electricity, water, sanitation, sewerage, road etc. Mandatory Mandatory

To avail of a home or financial reinforcement from the Indian Government, every seeker must meet the required eligibility criteria set by the PMAY committee. Potential applicants are branched into 6 different groups:

       EWS (economically weaker section): Individual who earns an annual household income below Rs 3 lakh come in the EWS category. However, the applicant claiming to be from the EWS requires providing proof to the Indian Government for the claim.

       LIG (low-income group): Individuals that fall under the LIG category generally have an annual household income ranging from Rs 3 lakh to Rs 6 lakh. To be eligible for this, this category must offer adequate proof of economic standing.

       MIG I (Medium Income Group): Those earning an annual income less than Rs 12 lakh fall in the MIG I class. These individuals can avail of a loan of nearly up to Rs 9 lakh for residential construction.

       MIG II (Medium Income Group): Individuals earning an annual income of between Rs 12 lakh and Rs 18 lakh will fall in the MIG II of the Pradhan Mantri Yojana scheme. Such individuals can take a loan of nearly up to Rs 12 lakh.

       Women: Those women who belong to the LIG/EWS categories are considered if they place an application under this PMAY scheme.

       Minorities: Individuals hailing from the minority group such as the scheduled tribe, scheduled caste or another backward caste fall under the minority category. To avail of the benefits of the PMAY scheme, such individuals must show the relevant income and caste certificates.

Apart from this, there is a principal requirement the applicant must meet. For example, if the beneficiary is a family member, it must be either the wife/husband or unmarried kids.

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