How Can You Avail Housing Loan Under PMAY?

Since the introduction of the PMAY in 2015, buying a home has become more affordable than ever. But, what is the process to avail the PMAY benefits? Read on to know more.

The Pradhan Mantri Awas Yojana CLSS (Credit Linked Subsidy Scheme) is the central government of India mission that was launched in 2015. Under the scheme, the government aims to make home-buying easier and affordable for the people from the lower-income group, economically weaker sections and the middle-income groups. The flagship affordable housing scheme offers interest subsidy on home loans for people who aspire to buy a home. The subsidy rate is decided based on annual household income.

 One of the significant benefits of the PMAY subsidy scheme apart from encouraging the poor to become homeowners is that the facility can be availed for purchasing a new house, construction of a new house, home improvement of the existing kutcha house, and extension of the house. To avail the PMAY subsidy benefits, you must meet the scheme’s eligibility criteria.

PMAY Eligibility for Different Income Groups

  • Economically Weaker Sections (EWS) and Low-Income Group (LIG)

To qualify for the PMAY subsidy under this category the annual household income should not be more than Rs.3 lakhs. And, the property that you wish to purchase must be not more than 30 square meters (for EWS), and 60 square metres (for LIG).

Additionally, for all applicants under this category woman ownership of the house is compulsory. So, if you are a married man, you must include the name of any of your woman family members as a joint owner of the home, irrespective of whether they contribute towards the repayment of the home loan.

  • Middle Income Group (MIG I and MIG II)

 If you apply for the PMAY subsidy under this category, your total annual household income should be between 6 lakhs to 12 lakhs (for MIG I) and 12 lakhs to 18 lakhs (for MIG II). The caret area of the property that you wish to purchase should be up to 120 square meters (for MIG I) and up to 200 square metres (for MIG II).

If you apply for PMAY benefits under MIG I and MIG II category, woman ownership is not mandatory.

Other Eligibility Requirements

Apart from income, you must meet the following criteria:

  • You or any of your family members should not own a pucca house in any part of India
  • You or any of your family members should not have benefitted from any central or state government housing scheme
  • If you are married, either you or your spouse can apply for the PMAY benefits, or you both can jointly apply for the loan under PMAY, but you can get only a single subsidy
  • If you apply for the PMAY subsidy under the MIG group, you must mandatorily furnish your Aadhaar details.

How to Claim the Subsidy Benefit

The home loan interest subsidy benefits guaranteed under the PMAY scheme are handled by two central nodal agencies – HUDCO (Housing and Urban Development Corporation) and NHB (National Housing Bank). These government organisations channelise the subsidy amount to the lending institutions which help the borrowers (eligible beneficiaries) to get the interest subsidy.

  • After the lender sanctions your loan and disburses the amount, they will send the necessary details to the NHB for verifying the beneficiaries’ details.
  • After NHB verifies the details and approves the subsidy to the eligible borrowers, the amount is disbursed to the lender
  • Once the lender receives the amount from NHB, they credit the same to the borrower’s home loan account and adjust the EMI accordingly
  • Once the subsidy amount is credited to your home loan account, your EMI will automatically reduce.

 Final Word

The PMAY subsidy is an excellent initiative by the government that makes home loan repayment more affordable for all.

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