The Government of India launched the Pradhan Mantri Awas Yojana on June 1st, 2015 with the aim of providing “housing for all” till the year 2022 – the 75th year of Indian independence. PMAY is a Credit Linked Subsidy scheme wherein the housing requirements of the urban poor (including slum dwellers) will be addressed through the following verticals – slum rehabilitation with the involvement of private developers using land as a resource, promotion of affordable housing for the weaker sections, affordable housing with the collaboration of private and public sectors, and a PMAY subsidy for beneficiary-led construction of homes.
Under the PMAY scheme, all home loan applicants who meet the Pradhan Mantri Awas Yojana eligibility criteria can avail of PMAY subsidy. Meaning, they can avail home loans at subsidised rates of interest. A maximum of Rs.2.67 lakhs can be saved on home loan interest if you end up taking a loan under this CLSS scheme.
The Three Beneficiary Categories for PMAY Subsidy
For availing home loan subsidy, the Pradhan Mantri Yojana makes provisions based on three categories of beneficiaries –
For the EWS or Economically Weaker Section (annual household income less than Rs. 3 lakhs) or the LIG or Lower Income Groups (annual household income higher than Rs. 3 lakhs but less than Rs. 6 lakhs), PMAY subsidy is offered at the rate of 6.50%. The subsidy is applicable on home loans that were approved on or after January 1st, 2017. A maximum of Rs. 2.67 lakhs can be availed in PMAY subsidy by these groups.
PMAY subsidy is offered during the loan tenure or for 20 years.
- MIG I
For home loan applicants falling under the MIG I or Middle Income Group I category (annual household income higher than Rs. 6 lakhs but below Rs. 12 lakhs), PMAY subsidy is offered at the rate of 4% up to a maximum loan amount of Rs. 9 lakhs. The upper limit for the subsidy amount for this category has been capped at Rs. 2.35 lakhs.
The subsidy is offered for a maximum of 20 years.
- MIG II
For those that belong to the MIG II or the Middle Income Group II category (annual household income higher than Rs. 12 lakhs but less than Rs. 18 lakhs), PMAY subsidy is extended at the rate of 3% up to a maximum loan amount of Rs. 12 lakhs. The maximum subsidy amount for home loan applicants under this category is Rs. 2.30 lakhs.
The subsidy is to be calculated for a maximum of 20 years.
When is PMAY Subsidy Credited?
If you have applied for a PMAY subsidy and are wondering whether you will receive it or not, rest assured that if you have done your documentation right, your subsidy under PMAY will be credited to your account.
The amount of subsidy is usually credited to the home loan applicant’s account within a month or two of application. There could be some delay in the turnaround time, mainly because the scheme has become very popular and the number of applicants has significantly increased.
Planning to avail the benefits of Pradhan Mantri Awas Yojana? Make sure that you meet the PMAY eligibility criteria – your family must not own a pucca house anywhere in India, female co-ownership is mandatory in case of EWS/LIG category, and your family must not have availed central assistance under any housing scheme from the government.
The PMAY scheme is rigorously being implemented, drawing nearer and nearer to its goal of making housing affordable for all societal groups.