Everything to Know About the Pradhan Mantri Home Loan Scheme

The Pradhan Mantri Awas Yojana (PMAY) was launched in June 2015 aiming to provide affordable housing solutions to rural areas. The initiative was later modified to incorporate the urban population, following specific guidelines. 

Here is an overview of the PMAY home loan scheme, which briefly covers details regarding aims, features, and eligibility required to enroll in the program –

Objectives of PMAY Scheme 2020

PMAY aims to provide: 

• Slum development/rehabilitation with participation from private sectors.
• Affordable housing solutions via credit-linked subsidy while partnering with both private and public sectors.
• Subsidy for beneficiary-led house construction/repairs.

The PMAY home loan scheme initially aimed to build pucca houses containing full-fledged sanitation, water, and electric supplies. It was meant for the Economically Weaker Section (EWS) and Low Income Groups (LIG) parts of society. 

Consequently, to make home loans affordable, the Government introduced two more categories in 2017 – Middle Income Group (MIG) I and II. 

Categories of PMAY

There are 4 different categories of the PMAY program based on the annual income and residence of individuals. Each group is offered several benefits of PMAY.

• Requirements and benefits for the EWS and LIG groups

1. Annual income between Rs.3 lakh to Rs.6 lakh p.a.
2. Maximum subsidy allowed 6.5%
3. Allowed amount Rs.2.67 lakh.
4. Age should be less than 70 years during the repayment period.
5. EWS beneficiaries are entitled to a carpet area of 30 sq. m.
6. LIG beneficiaries are entitled to a carpet area of 60 sq. m.

• Requirements and benefits for MIG I & II groups:

Requirements, as well as the features for Middle Income Group (MIG I & II) to avail the Pradhan Mantri Awas Yojana loan, are as follows –

MIG – I

1. Annual income should be between Rs.6 lakh to Rs. 12lakh.
2. Subsidy granted – 4%.
3. Allotted amount – Rs.2.35 lakh.
4. Loan term of 20 years with the option of 30 years if your age is below 70 at the end of repayment.
5. The entitled carpet area of 120 sq. m.

MIG – II 

1. Annual income should be between Rs.12 lakh to Rs.18 lakh.
2. Subsidy granted – 3%
3. Allotted amount – Rs.2.30 lakh
4. Entitled area and loan terms are similar to MIG – I.

PMAY Eligibility Criteria and Enrollment

Beneficiaries satisfying the PMAY eligibility criteria can apply for this housing scheme by following these steps – 

• Visit the official website and select ‘Search by the name’ from the ‘Search beneficiary’ tab.
• Enter your Aadhaar number.
• After you select ‘Show’, you will be presented with the PMAY list with tour details, if you are enlisted.
• View the complete details and verify your mobile number with an OTP.

Documents Required for PMAY

After completing the verification process, you have to apply for an assessment. This process ensures whether or not you are a first-time buyer who is eligible for PMAY. 

Here is a list of documents you require to apply for the PMAY scheme –

• Filled PMAY form.
• ID proof along with address proof.
• Proof of income with your income certificate.
• Last 6 months’ bank account statement.
• Affidavits claiming you or your family are not owners of any property in India.
• Latest IT return document.
• Valuation certificate for your proposed property along with an approved plan.
• Construction agreement with the developer.
• NOC from any housing authority.
• Property documents.
• Receipt for advance payment.

PMAY is aimed at providing housing for all. As of earlier 2020, many houses were under construction under this scheme.