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All you need to know about Pradhan Mantri Awas Yojana (PMAY) and its eligibility criteria

Under this scheme, the Government will offer the following types of assistance to help every individual to own their dream home.

November 27, 2019 / 07:01 PM IST

If you wish to be eligible for Pradhan Mantri Awas Yojana (PMAY), a 2015 Government of Indi- launched social welfare initiative called Pradhan Mantri Awas Yojana (PMAY) that aims to provide affordable housing options to specific sections of society.  The scheme covers 4041 statutory towns and aims to provide housing options to the beneficiaries by 2022. Under this scheme, the Government will offer the following types of assistance to help every individual to own their dream home:

  • Credit Linked Subsidy scheme

  • Partnered Affordable housing 

  • Rehabilitating the slum dwellers 

  • Assist with individual house construction or enhancement


Are you wondering if you will be able to avail of the benefits of the PMAY scheme? Read on to know more about Pradhan Mantri Awas Yojana eligibility to see if you can avail of the benefits.

Pradhan Mantri Awas Yojana eligibility criteria 

The PMAY scheme supports both urban and rural poor. The selection of beneficiaries for either of these categories is based on objective and verifiable markers. 

PMAY eligibility for PMAY urban scheme :

The individual desirous of becoming a beneficiary must belong to either the Economically Weaker Section or Middle Income Group or Low Income Group. To be eligible for the benefits under the Credit Linked Subsidy scheme, the individual must belong to the Low Income Group or the Middle Income Group.

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PMAY eligibility for PMAY rural scheme:

The erstwhile Indira Awas Yojana has been renamed as Pradhan Mantri Awas Yojana – Gramin, with effect from 2016. Individuals who are beneficiaries under this scheme must belong to either the Economically Weaker Section or Below Poverty Line or Low Income Group.

Pradhan Mantri Awas Yojana eligibility criteria for getting a subsidy

Credit Linked Subsidy Scheme is one of the components of PMAY that provides concessions on the interest for home loans. The annual income is one of the factors that affect PMAY eligibility to avail of the subsidy. The current thresholds are:

  • Economically Weaker Section or Lower Income Group - Annual income between Rs. 3 Lakh and Rs. 6 Lakh.

  • Middle Income Group I - Annual income within Rs. 6 Lakh - Rs. 12 Lakh.

  • Middle Income Group-II - Annual income within Rs. 12 Lakh - Rs. 18 Lakh.


In addition to the above, in case the individual belongs to Economically Weaker Section or Low Income Group, it is mandatory that at least one female member is registered as the owner of the new house.

The applicants desirous of availing the benefits under the Credit Linked Subsidy Scheme should not be existing owners of a pucca house in any part of India. 

Pradhan Mantri Awas Yojana eligibility under EWS/LIG scheme

Economically Weaker Sections and Low-Income Groups can receive a credit-linked subsidy on home loans or receive assistance from the Government for affordable housing. Under the affordable housing option, the PMAY scheme provides financial support to build houses for those who belong to the Economically Weaker Sections. The construction is done in partnership with various state governments, union territories, and the private sector players.

PMAY eligibility criteria for EWS and LIG for availing credit linked subsidy is:

  • The annual household income for EWS  has been capped at  Rs. 3 lakh. The annual household income for LIG should be above Rs. 3 lakh but below Rs. 6 lakh.

  • The credit linked subsidy will be provided for loans of up to Rs 6 lakh only

  • There should be at least one female owner of the house.


Under this scheme, beneficiaries can avail of a maximum interest subsidy of 6.5%. It is also mandatory that the carpet area of the unit constructed or purchased does not exceed 60 square meters in the case of LIG beneficiaries and 30 square meters in the case of EWS beneficiaries. 

If beneficiaries from EWS and LIG are opting for affordable housing in partnership options, the PMAY eligibility criteria are linked to the annual household income. In the case of EWS, the annual household income cannot exceed Rs. 3 lakh, and in the case of LIG, the annual household income cannot exceed Rs. 6 lakh.  

Under affordable housing in partnership vertical, the Government aims to maximize the availability of houses for EWS, where State/UT, either through its agencies or in collaboration with the private sector, can construct affordable housing projects. Further, the beneficiaries are directly chosen by the Government. The Government can also provide special subsidies to the individual developers in the form of stamp duty exemptions, lower cost of land, state subsidies, etc. 

The applicants desirous of availing the benefits under this scheme should not be existing owners of a pucca house in any part of India. 

Pradhan Mantri Awas Yojana eligibility under the CLSS (MIG-1) scheme

Individuals who belong to the Middle Income Group or MIG are also eligible to receive the assistance under CLSS vertical of the PMAY scheme. Earlier this year, the Central Government extended the benefit of the PMAY scheme for MIG until March 2020. The MIG consists of individuals who are upwardly mobile and aspire to own a house one day. 

Under PMAY, There are two categories of MIG beneficiaries decided on the basis of annual household income. Beneficiaries under the MIG-I category have a yearly household income of not less than Rs. 6 lakh but not more than Rs. 12 lakh. Such recipients are eligible to receive an interest subsidy of 4%, and the support will be calculated on a maximum amount of loan of Rs. 9 lakh.  The subsidy will be available on the maximum tenure of 20 yrs or the current loan tenure, whichever is lower. 

The loan availed can be for purchasing a house or for constructing a house. The property proposed to be bought or built must be in a Statutory Town as per the list of Census 2011. Additionally, the carpet area of the housing unit, which is being constructed or purchased, should not exceed 160 sqm. The aadhar number of each member of the beneficiary family is mandatory to seek the benefit of CLSS. 

For MIG-I beneficiaries, it is not mandatory that at least one female member is registered as the owner of the new house. As per the current rules, an adult member of the family who is earning can be treated as a separate household. Married couples will be eligible for a single house only provided they fulfill the income eligibility of the household under the scheme.

While LIG or EWS are permitted to use the benefits under CLSS to extend the existing kutcha or semi pucca house, extensions are not allowed for those who belong to MIG-I.

Pradhan Mantri Awas Yojana eligibility under the CLSS (MIG-11) scheme 

The eligibility criteria for MIG-II category is as follows:

  • Beneficiaries under the MIG-II category must have an annual household income of not less than Rs. 12 lakh, but not more than Rs. 18 lakh.

  • Beneficiaries are eligible to receive an interest subsidy of 3%, and the grant will be calculated on a maximum amount of loan of Rs. 12 lakh.  The subsidy will be available on the maximum tenure of 20 yrs or the current loan tenure, whichever is lower. 

  • Housing loan availed can be for purchasing a house or for constructing a house. The property proposed to be bought or built must be in a Statutory Town as per the list of Census 2011. Additionally, the carpet area of the housing unit, which is being constructed or purchased should not exceed 200 sqm. 

  • The aadhar number of each member of the beneficiary family is mandatory to seek the benefit of CLSS. 

  • An adult member of the family who is earning can be treated as a separate household. 

  • Married couples will be eligible to receive assistance for a single house only provided they fulfill the income eligibility.

  • MIG-II beneficiaries cannot use the CLSS assistance to carry out extensions to an existing kutcha or semi pucca house. 


Similar to MIG-I beneficiaries, it is not mandatory for MIG-II beneficiaries that at least one female member is registered as the owner of the new house. 

FAQs

Is there any limit on the loan amount over which a credit-linked subsidy can be claimed? 

Yes, the credit-linked subsidy is provided for loan amounts up to Rs. 6 lakhs. Any loan beyond this limit will not enjoy any interest subsidy.

I am desirous of availing the credit-linked subsidy. I want to apply for a home loan. Is the subsidy provided only when the price of the property I intend to purchase is above beyond a specific amount?

The subsidy is not linked to the price of the property. You can avail of the support if you fulfill the eligibility criteria, and your loan is within the threshold. 

Who is a beneficiary family?

A beneficiary family consists of husband, wife, and unmarried children. The beneficiary family should not own a pucca house in the name of any member of the family in any part of India.

I belong to the LIG category. Is it possible to apply for a home loan which has a tenure of 30 years?

Yes, you can apply for a loan with a tenure of 30 years. Appropriate due diligence will be carried out by the banks before the loan is disbursed to you. However, please note that the interest subsidy will be available for loans up to Rs 6 lakhs for a tenure of up to 20 years.

Is it possible to avail of the benefits under this scheme for carrying out repair works to the house?

Yes, if you fulfill the eligibility criteria, you can seek assistance for undertaking repair works to your existing house. However, please note that your current home must be either kutcha or semi pucca and is in need of extensive renovations for transforming it into a pucca house.

I am a non-resident Indian. Am I eligible for the benefits under this scheme?

You can apply for availing of the benefits under the PMAY scheme provided you fulfill the specified eligibility criteria.

Is it possible to receive all the types of assistance provided by the Government under PMAY?

PMAY scheme offers the following assistance: 

  • Credit Linked Subsidy scheme

  • Partnered Affordable housing 

  • Rehabilitating the slum dwellers 

  • Assist with individual house construction or enhancement

Beneficiaries are eligible to obtain only one type of support under the scheme.

As a beneficiary, how can I receive the credit-linked interest subsidy when I apply for a home loan?

If your application is successful, the interest subsidy will be directly credited to your account by the concerned financial institution. Your equated monthly installment will be reduced accordingly.

I have a plot of land, but I have not built a house on the plot. Am I eligible to apply for the assistance provided by PMAY?

One of the criteria for PMAY eligibility is that the beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India to be eligible to receive central assistance under the scheme. Since you do not own a pucca house, you will be able to apply for assistance provided you fulfill the income-related requirements of the scheme.

What documents can be furnished for proof of income?

Ideally, you should submit the latest salary slip/Form 16/ITR for the last three years. In case you do not have these documents handy, you can submit a self-attested certificate of your income. 
Moneycontrol News
first published: Nov 27, 2019 07:01 pm

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