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Pradhan Mantri Awas Yojna Eligibility – Check PMAY Eligibility Criteria & Details
In this article, we provide information about Pradhan Mantri Awas Yojna Eligibility. Pradhan Mantri Awas Yojana is a Government initiative with the aim of “Housing for All 2022”, launched on 25th June 2015 by the Honourable Prime Minister Shri Narendra Modi. PMAY is an effort to provide homes to the needy.
Pradhan Mantri Was Yojna Eligibility – PMAY Eligibility Criteria
Despite having made massive leaps in development over the last decade or so, India still has a large number of people living in abject poverty, most of whom don’t have a house to call their own. The Indian government took up a serious step towards abolishing homelessness with the introduction of Pradhan Mantri Awas Yojana. This project, which was previously known as Housing For All, will provide a roof to over 20 million urban poor people by the year 2022. In order to do so, the Ministry of Housing and Urban Poverty Alleviation has set a route map and has also made clear the eligibility criteria a prospective applicant need to meet.
| Section | Eligibility Details |
| Economically Weaker Section (EWS) | People who earn an annual household income less than Rs.3 lakh come under the EWS category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to ascertain their claims. |
| Light Income Group (LIG) | People that fall under LIG category usually have an annual household income ranging from Rs.3 lakh to 6 lakh. Again, to be eligible for consideration, they need to provide sufficient proof of their economic standing. |
| Medium Income Group (MIG1) | Those who earn an annual household income below Rs.12 lakh fall under the MIG1 category. These people can avail loans of up to Rs.9 lakh for the construction of a residence. |
| Medium Income Group (MIG2) | Individuals earning an annual household income between Rs.12 to Rs.18 lakh will fall under MIG2 of the PMAY scheme. These people can avail loans of up to Rs.12 lakh. |
| Minorities | People hailing from minority groups like SC/ST/OBC will fall under minorities. To be considered under the PMAY scheme, these people need to meet to provide relevant caste and income certificates. |
| Women | belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme. |
Schemes under Pradhan Mantri Awas Yojana (PMAY)
Currently, there are three schemes under which you can apply for Pradhan Mantri Awas Yojana (PMAY). They are as below.
- EWS (Economically Weaker Sections)/LIG (Low Income Group)
- CLSS (MIG-I)
- CLSS (MIG-II)
PMAY Eligibility Criteria for Getting Subsidy
The Ministry of Housing and Urban Poverty Alleviation has enlisted the help of some leading banks in the country to provide loans for construction under PMAY. The banks offer loans at a comparatively lower rate as the government pays the rest on behalf of the applicant. This model of subsidized loans helps more economically weaker people to build a house.
HDFC Bank has partnered with the government to offer loans to people who have applied for PMAY scheme. Here’s what it looks like:
- The applicant’s family must not own a house in any part of the country.
- In the case of a married couple, either a single or a joint ownership deal is allowed, and both options will receive just one subsidy.
- The applicant’s family must not have availed the benefit of any housing-related schemes set up by the Government of India.
Pradhan Mantri Awas Yojana Home Loan Scheme for LIG/EWS Category
For loan amount of Rs.3 lakh:
| Amount of loan | Rs.3 lakh |
| Loan amount eligible for the subsidy | Rs.3 lakh |
| Balance loan | Rs.1,66,360.00 |
| Interest subsidy | Rs.1,33,640.00 |
| Initial EMI | Rs.2,895 |
| Reduced EMI after subsidy credit | Rs.1,605 |
| Savings on a monthly basis | Rs.1,290 |
| Savings on an annual basis | Rs.15,480 |
For a loan amount of Rs.6 lakh:
| Amount of loan | Rs.6 lakh |
| Loan amount eligible for the subsidy | Rs.6 lakh |
| Balance loan | Rs.3,32,720.00 |
| Interest subsidy | Rs.2,67,280.00 |
| Initial EMI | Rs.5,790 |
| Reduced EMI after subsidy credit | Rs.3,211 |
| Savings on a monthly basis | Rs.2,579 |
| Savings on an annual basis | Rs.30,948 |
For a loan amount of Rs.10 lakh:
| Amount of loan | Rs.10 lakh |
| Loan amount eligible for the subsidy | Rs.6 lakh |
| Balance loan | Rs.7,32,720.00 |
| Interest subsidy | Rs.2,67,280.00 |
| Initial EMI | Rs.9,650 |
| Reduced EMI after subsidy credit | Rs.7,071 |
| Savings on a monthly basis | Rs.2,579 |
| Savings on an annual basis | Rs.30,948 |
Pradhan Mantri Awas Yojana Loan Scheme for MIG – 1
| Income of the household per year | Rs.12 lakh |
| Maximum tenure of the loan | 20 years |
| Interest subsidy per year | 4% |
| Eligible amount of loan for interest subsidy under CLSS (Credit Linked Subsidy Scheme) for MIG | Rs.9 lakh |
| Maximum interest subsidy | Rs.2.35 lakh |
| The rate of discount for NPV (Net Present Value) calculation of the interest subsidy | 9% |
| Dwelling unit max carpet area | 90 sq.mt |
| Monthly EMI (8.65%) with interest subsidy | Rs.5,834 |
| Monthly EMI (8.65%) without interest subsidy | Rs.7,894 |
Pradhan Mantri Awas Yojana Loan Scheme for MIG – 2
| Income of the household per year | Rs.18 lakh |
| Maximum tenure of the loan | 20 years |
| Interest subsidy per year | 3% |
| Eligible amount of loan for interest subsidy under CLSS (Credit Linked Subsidy Scheme) for MIG | Rs.12 lakh |
| Maximum interest subsidy | Rs.2.3 lakh |
| The rate of discount for NPV (Net Present Value) calculation of the interest subsidy | 9% |
| Dwelling unit max carpet area | 110 sq.mt |
| Monthly EMI (8.65%) with interest subsidy | Rs.8,059 |
| Monthly EMI (8.65%) without interest subsidy | Rs.10,528 |
| Income of the household per year | Rs.18 lakh |
| Maximum tenure of the loan | 20 years |
| Interest subsidy per year | 3% |
| Eligible amount of loan for interest subsidy under CLSS (Credit Linked Subsidy Scheme) for MIG | Rs.12 lakh |
| Maximum interest subsidy | Rs.2.3 lakh |
| The rate of discount for NPV (Net Present Value) calculation of the interest subsidy | 9% |
| Dwelling unit max carpet area | 110 sq.mt |
| Monthly EMI (8.65%) with interest subsidy | Rs.8,059 |
| Monthly EMI (8.65%) without interest subsidy | Rs.10,528 |
PMAY Eligibility Criteria for Getting Subsidy
The Ministry of Housing and Urban Poverty Alleviation has enlisted the help of some leading banks in the country to provide loans for construction under PMAY. The banks offer loans at a comparatively lower rate as the government pays the rest on behalf of the applicant. This model of subsidized loans helps more economically weaker people to build a house.
HDFC Bank has partnered with the government to offer loans to people who have applied for PMAY scheme. Here’s what is looks like:
- The applicant’s family must not own a house in any part of the country.
- In the case of a married couple, either a single or a joint ownership deal is allowed, and both options will receive just one subsidy.
- The applicant’s family must not have availed the benefit of any housing-related schemes set up by the Government of India.