Are You Eligible For Home Loan Subsidy Under The Pradhan Mantri Awas Yojana?

Eligibility of Home Loan Subsidy Under PMAY

India is a developing nation which, unfortunately, implies that many people across the country are either homeless or live in dilapidated houses, thus leading below average quality of life. It is for this very reason that the nation saw the launch of a new ‘housing for all’ scheme – the Pradhan Mantri Awas Yojana or the PMAY as it is popularly known.

The project aims to offer access to permanent homes (pucca houses) to the economically weaker section from both, rural as well as urban areas by providing them with financial assistance. This assistance is slated to be offered in the form of subsidised interest rates on Home Loans under the Credit-Linked Subsidy Scheme (CLSS) of the PMAY.

The cost for the subsidised construction of the pucca houses, under this scheme, will be divided between the Central and the State Government, in the ratio of 60:40. 

Eligibility Criteria for PMAY

If you are willing to enjoy the Pradhan Mantri Awas Yojana Subsidy, you must fall into one of the following categories, and fulfil all the criteria pertaining to your household income, position in the economic spectrum, as well as housing needs mentioned hereunder.

Economically Weaker Sections (EWS)

To qualify under this segment, your annual household income must be a maximum of Rs. 3 Lakh. Besides, the carpet area of your house must not exceed 30 square metre or 323 square feet in size.

Under this segment, you will be entitled to a Home Loan amount of up to Rs. 6 Lakh, on which you will be offered a subsidy of 6.5% on the interest rate. You can repay this loan amount in a period of up to 20 years.

At the end of the repayment period, your age must be 70 years or less.

Low-Income Groups (LIG)

qualify under Low-Income Group, your annual household income must be between Rs. 3 Lakh to Rs. 6 Lakh. Besides, the carpet area of your house must be between 30 square metre (or 323 square feet)to 60 square metre (or 645 square feet).

In this case, you will be entitled to a Home Loan amount up to Rs. 6 Lakh, on which you will be offered a subsidy of 6.5% on the interest rate. You can repay this loan amount in a period of up to 20 years.

At the end of the repayment period, your age must be 70 years or less. 

Middle Income Group I (MIG I)

To qualify under this segment, your annual household income must be between Rs. 6 Lakh to Rs. 12 lakh. Besides, the carpet area of your house must be 160 square metre or 1700 square feet or less.

Under this category, you will be entitled to a Home Loan amount of up to Rs. 9 Lakh, with a subsidy of 4%. You can enjoy an extended repayment period of up to 30 years; however, at the end of the repayment period, your age must be 70 years or less.

Middle Income Group II (MIG II)

To qualify under Middle Income Group II, your annual household income must be between Rs. 12 Lakh and Rs. 18 Lakh. Besides, the carpet area of your house must be 200 square metre (or 2150 square feet) or less.

Under this category, you will be entitled to a Home Loan amount of up to Rs. 12 Lakh, with a subsidy of 3%. You can enjoy an extended repayment period of up to 30 years; however, at the end of the repayment period, your age must be 70 years or less.

In addition to the above-mentioned criteria, you must also adhere to the below-mentioned aspects in a bid to prove your eligibility for Loan Subsidy, under the Pradhan MantriAwasYojana.

You can only avail the subsidy under this scheme if you do not own any pucca house any other part of the nation. Besides, no member of your family must own a home in any part of India. In this case, a family denotes a husband, his wife and their unmarried son(s) and daughter(s), if any.

You are only entitled to avail of this scheme if you have not availed any other housing scheme offered by the Central or the State government.

If you are a senior citizen or qualify as a differently abled person, it is a must that your housing accommodation is situated on the ground floor.

It is mandatory to make use of eco-friendly material for the construction of the property.

You must register the property in the name of the female head of the household. Alternatively, you can register the same in the joint name of the female and male heads of the family. If there is no adult female in the family, only then can you register the property in the name of a male head.

Your monthly EMI must not exceed 50% of your monthly household income. To make sure this doesn’t come in the way of your loan, you should either opt for a longer tenure or a smaller loan amount.