Gone those days when buying a home by taking a home loan was costly. Because now there is Pradhan Mantri Awas Yojana which gives you an option to buy your dream house at an affordable cost.

The “Credit-Linked Subsidy Scheme” of  “Pradhan Mantri Awas Yojana” will give interest subsidy on purchase/construction/ extension/ home improvement. 

The scheme was launched by Hon’ble Prime Minister Narendra Modi in 2015 and will be beneficial to Economical Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG).

Why take a Home Loan under Pradhan Mantri Awas Yojana?

Following are the reasons that will prove the point of taking a Home Loan under Pradhan Mantri Awas Yojana.

Large subsidy

You will get a good interest rate subsidy. The subsidy will be given on the basis of your income level. 

Particulars	Economical Weaker Section (EWS)	Lower Income Group (LIG)	Middle Income Group 1 (MIG 1)	Middle Income Group 2 (MIG 2)
Interest Rate Subsidy(%)	6.5% on a maximum loan amount of ₹ 6 lakh	6.5% a maximum loan amount of ₹ 6 lakh	4% on a maximum loan amount of ₹ 9 lakh	3% on a maximum principal amount of ₹ 12 lakh

Very beneficial for women and minorities

It is mandatory to have a woman’s name registered in the homeownership even if she is not buying the property.

There are also good provisions made in homeownership for the salaried women, widows, transgender people, the disabled, minorities and seniors.

Eligibility for the Pradhan Mantri Awas Yojana

The Ministry of Housing and Urban Poverty has laid down eligibility criteria for the scheme.

• The applicant must not have any house in any part of the country in either his/her name or any of his/her family member name.
• The Applicant and the family members must not have taken any benefit of other government housing scheme prior to this scheme.
• It is compulsory that at least one female should be the co-owner of the property
• The location should be according to the 2011 census town classifications.

Following is the PMAY Eligibility Criteria applicable to EWS, LIG, MIG 1 and MIG 2 categories to get the subsidy.

Particulars	Economical Weaker Section (EWS)	Lower Income Group (LIG)	Middle Income Group 1 (MIG 1)	Middle Income Group 2 (MIG 2)
Household Income	Up to 6 lakhs	Up to 6 lakhs	6 to 12 lakhs	12 to 18 lakhs
Carpet Area-Max (sqm)	60 sqm	60 sqm	160 sqm	200 sqm

How to apply for the (PMAY)

Following is the process for applying to PMAY for EWS, LIG, MIG 1 and MIG 2.

First Step:  Log in to the official Pradhan Mantri Awas Yojana at pmaymis.gov.in.

Second Step: Select the ‘Benefits under other 3 components’ option by clicking on the ‘Citizen Assessment’ dropdown.

Third Step: Enter your Aadhar Number and click on the Submit button. 

Fourth Step: Now you have to fill details like your name, income, number of family members, residential address, contact number, age of the head of the family, religion, caste, etc.

Fifth Step: When the above details are filled, scroll down the page and enter the captcha code in the box and click submit.

What is the process to avail the subsidy?

After enrolling for the Pradhan Mantri Awas Yojana Scheme, you have to select a lender. LoansXpert will assist you in selecting the most suitable lender for you. 

After approval of the application by the lender, the loan amount will get deposited in your account. It is the lender that will claim the subsidy on behalf of you from the government.

You don’t have to worry about the initial EMIs which you were paying at the normal rate because you will get compensated for it after the government approves the application.

For the first few months, you have to pay the EMIs at the normal interest rates. Your EMI cost will decrease only after the government approves the application sent to it by the lender on behalf of you.

Features

The major feature is the interest rates that below four categories will receive.

Particulars	Economical Weaker Section (EWS)	Lower Income Group (LIG)	Middle Income Group 1 (MIG 1)	Middle Income Group 2 (MIG 2)
Interest Rate Subsidy(%)	6.5% on a maximum loan amount of ₹ 6 lakh	6.5% a maximum loan amount of ₹ 6 lakh	4% on a maximum loan amount of ₹ 9 lakh	3% on a maximum principal amount of ₹ 12 lakh

Other features consist of

• Females applications are given the major preferences
• The tenure of the scheme is 20 years.
• Senior citizens and the differently-abled persons will get first preferences for ground floor flats.
• The scheme also focusses on the housing requirements of slum dwellers.
• Construction of the houses will be carried out by eco-friendly materials and technology.
• The scheme covers all the urban areas of the country.

Beneficiaries

Following are the beneficiaries of the Pradhan Mantri Awas Yojana

• Husband, Wife, Unmarried sons and/or unmarried daughters.
• Women of any caste and religion
• Economically Weaker Section (EWS)
• Lower Income Group(LIG) members
• Middle Income Group(MIG 1& 2) members
• Scheduled Castes (SCs)
• Scheduled Tribes (STs)

What is the maximum subsidy you can claim under  (PMAY)

Following is the maximum subsidy that is given to the EWS, LIG, MIG 1 and MIG 2 categories.

Particulars	Economical Weaker Section (EWS)	Lower Income Group (LIG)	Middle Income Group 1 (MIG 1)	Middle Income Group 2 (MIG 2)
Max Subsidy (Rs.)	2.67 Lakh	2.67 Lakh	2.35 Lakh	2.30 Lakh
Tenure	20 Years	20 Years	20 Years	20 Years
The validity of the scheme	31 March 2022	31 March 2022	31 March 2020	31 March 2020