One of the primary motives of PMAY is to alleviate the financial burden of the urban and rural poor by allowing an interest subsidy on home loans through the Credit Linked Subsidy Scheme (CLSS).
The PMAY subsidy depends on the economic background of the concerned individual or family. Beneficiaries can also avail several other key benefits of PMAY.
What are the eligibility criteria to avail PMAY subsidy on a home loan?
The eligibility criteria for subsidies have been set according to the individual or family’s financial position. The beneficiaries should be a part of the following income groups to be eligible for interest subsidy –
- Middle Income Group I (MIG I) – Family annual income between the range of Rs. 6 lakh to Rs.12 lakh.
- Middle Income Group-II (MIG II) – Family annual income within the range of Rs.12 lakh to Rs.18 lakh.
- Economically Weaker Section (EWS) – Family annual income up to Rs.3 lakh.
- Low Income Group (LIG) – Family annual income within the range of Rs.3 lakh – Rs.6 lakh.
Additionally, the candidate should satisfy the following criteria –
- The applicant must not own a house.
- The applicant should not a previous beneficiary of any state or central government housing scheme.
PMAY Subsidy Rates
The home loan subsidy rates which individuals or families from the above-mentioned financial backgrounds can avail are discussed below –
- MIG I – Subsidy of up to 4% on home loans of up to Rs.9 lakh.
- MIG II – Subsidy of up to 3% on home loans of up to Rs.9 lakh.
- EWS and LIG – Subsidy of up to 6.5% on home loans up to Rs.6 lakh.
Nearly 96.2 lakh houses have been sanctioned under the Pradhan Mantri Awas Yojana - Urban (PMAY-U) as of 1st December 2019.
To avail this fund, individuals also need to fulfil strict eligibility parameters. After verification, the Government releases a PMAY list where state-wise beneficiaries’ name is displayed.
PMAY is the government’s flagship housing scheme through which the government aims to construct 20 million houses by the end of March 31st, 2022.
