Who Is Eligible for Pradhan Mantri Awas Yojana Subsidy?

Since the PMAY initiative was announced in 2015, several people have benefited from it. If you have been long aspiring to be a homeowner, you can apply for a loan under the PMAY scheme. But, to avail the benefit, you must be eligible for it. Read on to know more about PMAY eligibility.

The Ministry of Housing and Urban Poverty Alleviation with its mission to provide housing for all has set a clear road map to achieve the goal. It has set up eligibility requirements for the people to qualify for the PMAY benefits.

But, before we look at the eligibility for PMAY, let us understand the benefits of Pradhan Mantri Awas Yojana.

• Under the scheme, the government aims to build more than two crore new affordable housing units for the poor in selected urban locations across India.
• The houses built under the scheme are constructed using eco-friendly technology and with eco-friendly materials to reduce environmental pollution and wastage.
• All homes constructed under the scheme will have basic amenities like sanitation facilities, 24 x 7 electricity, water connection, etc
• During the allocation of the houses, preference will be given to women applicants.
• To encourage the women citizens of India to be homeowners, the scheme makes it mandatory for the home purchased with the PMAY benefit must be registered in the name of a woman family member
• Under the CLSS (Credit Linked Subsidy Scheme), which is an integral part of the PMAY,the government of India aims to help the poor become homeowners by providing them subsidy on the home loan interest rate. The grant depends on the income category you belong to.

Eligibility for Pradhan Mantri Awas Yojana

To avail the financial help from the government, you must meet the eligibility criteria set by the PMAY committee. To make it easy for the people, the committee divided the prospective applicants into four different groups based on their income.

EWS or Economically Weaker Section

People whose annual household income is less than Three Lakh Rupees are categorised under the EWS category. However, to be eligible for PMAY benefit under the category, the applicant must provide relevant income proof. For EWS category, the government offers a subsidy of 6.50% on home loans for 20 years. The subsidy is limited to a maximum loan amount of six lakhs.

LIG or Low-Income Group

People whose annual household incomes are between three lakhs and six lakhs are categorised as LIG. Applicants under this group receive the same subsidy benefit as EWS. Again, to avail the subsidy benefit under the category, the applicant must furbish relevant income proof.

MIG I or Middle-Income Group I

Applicants who wish to avail PMAY home loan subsidy under the category, their annual income should not be more than 12 lakhs. Applicants under the group can get a subsidy of 4% on a loan amount of Rs. 9 lakhs with a loan tenure up to 20 years.

MIG II or Middle-Income Group II

People who are an annual income between 12 lakhs to 18 lakhs are categorised under the MIG II category. Applicants under the category can avail a subsidy of 3% on loans up to 12 lakh Rupees for 20 years.

Other Eligibility Requirements

• The applicant or any of the applicant’s family member should not own a pucca house in any part of India.
• The applicant or any of the applicant’s family member should have availed financial support under any other central or state government affordable housing scheme
• If the applicants are a married couple, either of the spouses can apply for a subsidy or both can together apply for a single subsidy.

Thus, PMAY is an excellent initiative by the government of India to encourage every citizen to be a homeowner.