The government introduced the Pradhan Mantri Awas Scheme or PMAY scheme as a ‘Housing for all’ scheme in 2015 to provide affordable housing to all the economically deprived sections and lower strata of society of rural and urban India. Under the project, the government has set a target of providing housing at subsidized rates to over 20 million households by the year 2022.
Wish to avail of the loan under PMAY Scheme? Check out the PMAY Eligibility Criteria
- Why should you avail of a loan under the PMAY scheme?
The government of India provides loans for the construction of houses at subsidized interest rates to the economically deprived sections and lower-income groups. PMAY Scheme has additional benefits for the women and minorities of both rural and urban India.
- What is the required PMAY Eligibility Criteria?
If you want to avail the loan under PMAY scheme you should meet the following eligibility criteria:
- If you fall under the bracket of the economically weaker section, your income should not exceed Rs. 3 Lakhs.
- For the Lower Income group, the maximum income level should be between the range of Rs. 3 Lakh and Rs. 6 Lakh.
- Middle Class have been divided into 2 groups:
- MIG-1 should have income between Rs. 6 Lakh to Rs. 12 Lakh
- MAIG-2 should have income between Rs. 12 Lakh to Rs. 18 Lakh
- What are the subsidized interest rates and loan amounts under the PMAY Scheme?
The following table summarises the subsidized interest rates and loan amounts for different eligible groups under PMAY scheme:
|Groups||Interest Subsidy||Loan Amount|
|MIG 1||4.00%||9 Lakhs|
|MIG 2||3.00%||12 Lakhs|
- What is the lock-in period under the PMAY scheme?
Under the PMAY scheme, you cannot sell your dwelling before the tenure of 5 years. The lock-in period of 5 years ensures that there is no malpractice by selling their house to third parties at a higher rate of interest.
- What is the usable carpet area under the PMAY scheme?
The net usable carpet area varies for different strata of applicants:
- For EWS, the net carpet area is 30 square meters.
- For LIG, the net carpet area is 60 square meters
- For MIG-1, the net carpet area is Rs. 160 square meters.
- For MIG-2, the net carpet area is Rs. 200 square meters.
- What are the essential documents you require under the PMAY scheme?
You would require to submit the following documents to avail loan under PMAY scheme:
- Documents for address proof: A life insurance policy, Aadhar card, Voter ID, residential address certificate, or a rent agreement, passport, or a letter issued by any public authority confirming about your address are various documents that work as an address proof.
- Documents for address proof of business identity: Utility bills such as telephone bill, the electric bill, gas bill, Sale deed, Bank statements for the last 3 months, receipt of municipal or property tax, life insurance policy or any other investments issued by public sector undertakings, a letter from the Foreign Embassy or Mission in India.
- Documents for identity proof: Aadhar Card, Voter ID, government-issued photo identity card, a passport, a letter issued from any public servant with your photograph not older than a month.
- Income proof documents: ITR receipts or bank statements of the previous 6 months and salary slips of 2 months are some documents you can submit for income proof.
- Proof for property purchase: Property documents, buyer agreement/ allotment letter, or the payment issue.
PMAY scheme not only provides the loan for the construction of houses at a subsidized rate of interest for a maximum tenure of 20 years, but there are tax benefits as well. However, before availing of a loan under the PMAY scheme, one must check the PMAY eligibility criteria.