What is PMAY?
The Pradhan Mantri Awas Yojana is a Prime Minister Narendra Modi initiative that was launched in 2015. The goal of this initiative is to give cheap homes to India’s urban poor by 2022. “Housing for all” is the project’s tagline. The focus is on slum remediation and the Credit Linked Subsidy Scheme (CLSS), which aims to make housing more accessible for everyone.
What is PMAY eligibility?
Under the PMAY scheme, one can get an interest subsidy on their home loan through the Credit Linked Subsidy Scheme (CLSS). Once eligible for it, the loanee can claim an interest subsidy of up to 6.5% on their home loan under PMAY.
Here are the eligibility terms that one needs to abide by to claim the subsidy.
- Credit linked subsidy is available at 4% for loans up to Rs. 9 lakh, in case a person belongs to the MIG 1 category.
- Credit linked subsidy is available at 3% for loans up to Rs. 12 lakh, if one belongs to the MIG 2 category.
- Credit linked subsidy is available at 6.5% for loans up to Rs. 6 lakh, if one belongs to EWS or LIG category.
In the PMAY list, an individual can qualify for a category only if their cumulative household income every year stands within a specified amount.
Here’s what makes them eligible for Pradhan Mantri awas yojana benefits.
- Applicants are eligible for the EWS segment provided their household annual income stands below Rs. 3 lakh.
- Applicants can qualify under the LIG segment provided their household annual income is Rs. 3-6 lakh.
- Applicants can qualify for the MIG 1 segment provided their household annual income is Rs. 6-12 lakh.
- Applicants can qualify for the MIG 2 segment provided their household annual income is Rs. 12-18 lakh.
An applicant will only be able to get a loan under PM Awas Yojana if they fulfill the following PMAY scheme eligibility criteria:
- Husband, wife, and unmarried sons or daughters should make up a beneficiary household
- Married couples can apply for a subsidy whether they own the property individually or jointly; both alternatives will receive the same amount of money.
- The beneficiary must be a first-time homebuyer.
- The beneficiary or their family must not have received central aid through the PMAY or any other government housing scheme.
- There should be no pucca houses in the beneficiary’s name or the name of any family member.
What are the benefits of the CLSS scheme?
The Pradhan Mantri Awas Yojana benefits are as follows:
- Loan recipients receive the subsidised amount from the Government directly in their loan account. This brings down their outstanding principal amount, thus, reducing the EMIs.
- As EMIs become more manageable, it becomes easier to repay the housing loan. Alternatively, if beneficiaries choose to pay the actual EMIs, the loan tenor shortens. Through this, the beneficiaries can select a suitable option as per their requirements.
- Applicants claiming this interest subsidy can also avail of tax benefits on the home loan.
- By making homeownership or co-ownership by a female family member a required clause for the EWS and LIG categories, the Pradhan Mantri Yojana furthers the cause of female empowerment. Salaried women, widows, transgenders, and senior citizens are also given preference. It is one of the most important part of Pradhan Mantri Awas Yojana benefits
- Houses are built under the Pradhan Mantri Awas Yojana using eco-friendly techniques and materials to lower environmental pollution.
Apply for an affordable Home Loan with a loan company associated with HFCs to enjoy the Pradhan Mantri Awas Yojana benefits in India. Here the applicant can get a substantial sanction for a tenor of up to 30 years. Along with this, the beneficiary can also avail of a low-interest top-up loan and enjoy easy doorstep pickup of documents to fast-track their application.