Pradhan Mantri Awas Yojana (PMAY) is one unique scheme recently introduced by Government of India with an intention to provide housing facilities to individuals who are under Economical Weaker Section, Lower Income Group and Middle Income Group.
Annual income up to Rs.3,00,000/- are considered as Economical Weaker Section.
Annual income between 3,00,000 to Rs.6,00,000/- are considered as Lower Income Group.
Annual income between 6,00,000 to Rs.12,00,000/- are considered as Middle Income Groups (I).
Annual income between 12,00,000 to Rs.18,00,000/- are considered as Middle Income Groups (II).
Government Interest subsidy under Pradhan Mantri Awas Yojana
Interest subsidy for Economical Weaker Section and Lower Income Group is 6.5%
Interest subsidy for Middle Income Group (I) is 4.0%
Interest subsidy for Middle Income Group (II) is 3.0%
Note: The interest subsidy will be available only for a maximum loan tenure of 20 years, hence maximum subsidy can avail under Economical Weaker Section and Lower Income Group is 2.67 lakhs, 2.35 lakhs for Middle income group I and 2.30 lakhs for Middle income group (II).
If someone in the Middle income group (II) construct a house costing 50 lakh.
He needs to arrange minimum down payment of 10 lakh (i.e. 20% of 50 lakh).
PMAY subsidy of 3% would be applicable only till 12 lakh. (i.e. 3% subsidy interest for this 12 lakh)
Finally lender’s home loan interest rate applicable only for the remaining
How to apply Pradhan Mantri Awas Yojana?
Individuals who are willing to avail the loan under this category should send application online.
Steps to send application online:
The following are the steps by which the application has to be sent for availing the loan Pradhan Mantri Awas Yojana
- Click on the following link to get an entry into the website: http://pmaymis.gov.in/
- Click on the following drop down menu – Citizen application.
- Select – For slum dwellers –> in case you are living in a slum area
- Select – Benefits under other 3 components –> in case you are living in areas other than slum areas
- Now you will be getting an application form and you have to fill up the necessary details in the application. Mandatory fields are to be filled up without fail
- You must enter your AADHAAR number and details of income are to be filled up in the application form without fail
- Need to fill up the basic details like Name of the applicant, Father’s Name, State name, City Name, Pincode, Age and date of birth of the applicant etc.
- Once the entire details have been filled up, the applicant should submit a declaration by ticking on the relevant column
- The captcha details are to be filled in correctly without any error
- Now the application is complete in all respects
- It is better to verify the details once again and changes if any can be made before final submission
- Once the details are found correct, final submission can be made by saving the button meant for it
- Once the system accepts the details, an application serial number will be displayed on the screen and the number has to be noted for future reference
- The status of the application can be checked using the application number and the application can also be downloaded in the system and a printout can be taken for future verification
1. Who can apply for a house under Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme?
Any Indian citizen from Low Income Group (LIG) and Middle Income Group (MIG) can apply under the PMAY scheme. Beneficiary should not have received central assistance under the CLSS (Credit Linked Subsidy) Scheme.
2. What is the applicable interest subsidy in Pradhan Mantri Awas Yojana?
Beneficiaries would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 15 years or during tenure of loan whichever is lower on the initial Rs. 6 Lakhs. Any additional loan/s beyond Rs. 6 Lakhs will be at the non-subsidised rate.
3. How the interest subsidy would be adjusted in the loan account?
For the eligible borrowers, the PMAY subsidy amount would be paid to the Bank by government. Once the Bank receives the interest subsidy, it will be credited upfront for lowering the EMI burden for the borrowers.
4. Can a person apply twice under Pradhan Mantri Awas Yojana?
No. you are not allowed to apply more than once under PMAY.
5. Is there any loan limit under Pradhan Mantri Awas Yojana?
There is no limit for loan amount under this scheme. However, Government Interest Subsidy would be computed only for the first 6 lakhs.
6. Is it mandatory to attach the Aadhaar details?
Yes. For processing the subsidy under PMAY for MIG I and MIG II schemes, it is mandatory to fetch the Aadhaar card details of all your family members.
7. Who will lend loan under this scheme?
One can apply this PMAY subsidy home loans from any Commercial banks, Housing finance companies, Rural banks, State Cooperative banks, Urban Cooperative banks, other institutions like small finance banks and non-banking finance company, micro finance institutions etc.