Pradhan Mantri Awas Yojana (PMAY) is an effort taken by the government to make home ownership affordable for individuals belonging to varied income groups. With this scheme, you can take steps to become a proud homeowner sooner than you had planned by utilising the credit linked subsidy on your Home Loan. So, no matter what the prevalent Home Loan interest rates are, purchasing a home becomes more affordable for you.
You must know the key features of PMAY scheme before applying for a Home Loan to make your dream come true.
- PMAY-U (Urban)
The PMA-U scheme classifies applicants into three categories: Economical Weaker Sections (EWS), Low Income Group (LIG) or Medium Income Group (MIG). These categories are formulated basis your annual household income: for EWS/LIG application, your annual household income must be between Rs.3 lakh to Rs.6 lakh; for MIG-I application, your annual household income must be within the Rs.6 lakh to Rs.12 lakh bracket and to qualify for MIG-II category, your annual household income must be between Rs.12 lakh to Rs.18 lakh.
Governed by your income eligibility, you stand to experience the CLSS or Credit-Linked subsidy benefits. Here, as an EWS/LIG applicant, you can claim up to 6.5% interest subsidy on a Home Loan up to Rs.6 lakh. As an MIG-I applicant, you can claim 4% interest subsidy on your Home Loan of up to Rs.9 lakh. As MIG-II applicant, you can avail Credit-Linked subsidy of 3% on a Home Loan of up to Rs.12 lakh. Here, the exception is that in case your loan amount sanction exceeds the maximum cap, then you cannot claim subsidy on the extra amount
- PMAY-G (Gramin)
Under the PMAY-G scheme, the government selects beneficiaries through an entirely different process. In case you are listed as a rural contended under the Socio Economic Caste Census of 2011, then vide this list you are eligible for PMAY. This list is then forwarded to individual Gram Sabhas or Panchayats for verification. Once approved at this stage, then the eligibility list is put up for that particular region. In case you are sure that you meet the Pradhan Mantri Awas Yojana eligibility criteria, you can check this list based on your area of residence. If your name appears on the list, you can apply for PMAY.
– Interest Subsidy
As per the conditions of gaining subsidies on your Home Loan, PMAY -G puts forth a different set of norms. Here, you can even use funds from your sanction for renovation and construction purposes. Also, under PMAY-G segment, you can claim a Credit-Linked subsidy of 3% on your Home Loan of up to Rs.3 lakh.
Since PMAY promotes the idea of housing for all, so claiming your share basis your eligibility is easy. All you have to do is apply after meeting the PMAY eligibility criteria. You can apply for PMAY easily using the PMAY website: pmaymis.gov.in. On the website, select your income category, verify your identity using your Aadhaar number and fill in the required information using an online application form. Once you are done, submit your application to get an acknowledgment reference number.
To apply offline, you need to visit your nearest Common Service Centres (CSC). Show them your Aadhaar card and then pay just Rs.25 to get an e-KYC form. Fill in this form and submit attaching a photo. You will receive an acknowledgement receipt with your reference number. Use this number to track your application in the future.
Once you apply for PMAY, you can avail a Home Loan of up to Rs.3.5 crore from leading NBFC’s such as Bajaj Finserv to fund the purchase or construction expenses of your home. So, don’t wait further and take the step to turn you dream into reality!