Everyone dreams of having at least one property under their name. Earlier, the issues regarding the finance, human resources, loan from the bank, and heavy interest rates stopped people from investing in property. Prime Minister of India, Shri Narendra Modi who comes from the same background, took notice of this issue and introduced a very fruitful scheme in June 2015.
Through Pradhan Mantri Awas Yojana (PMAY), the Government of India promises to allocate shelter to those who couldn’t afford it at the market price. The mission aims to give housing to all people of India by 2022. After short-listing a few cities and towns, the Government will build affordable houses implementing eco-friendly construction techniques. Under Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme (PMAY CLSS), the Government provides home loan to three major groups:
1) Economically Weaker Section (EWS): Income is up to 3 lakh rupees per annum.
2) Low Income Group (LIG): The income is between 3.01 lakh rupees to 6 lakh rupees per annum.
3) Middle Income Group (MIG): The MIG’s have two classes as below.
(i) MIG1: The income is between 6.01 lakh rupees to 12 lakh rupees per annum.
(ii) MIG2: The income is between 12.01 lakh rupees to 18 lakh rupees per annum.
The below table summarizes the Pradhan Mantri Awas Yojana detailsand interest rates for the home loans.
| Particular | EWS | LIG | MIG1 | MIG2 |
| Annual Income | Upto 3 lacs | Upto 6 lacs | Upto 12 lacs | Upto 18 lacs |
| Interest Rate Subsidy per annum | 6.5% p.a. | 6.5% p.a. | 4% p.a. | 3% p.a. |
| Maximum Home loan Tenure | 20 years | 20 years | 20 years | 20 years |
| Maximum Eligible Home Loan amount to get Subsidy | Rs. 6 lacs | Rs. 6 lacs | Rs. 9 lakh | Rs. 12 lakh |
| Maximum Area allocated*** | 30 sq. m | 60 sq. m | 160 sq. m | 200 sq. m |
| Maximum Interest Subsidy amount | Rs. 2.67 lakh | Rs. 2.67 lakh | Rs. 2.35 lakh | Rs. 2.30 lakh |
| Discount Rate for NPV Calculation of Interest Subsidy | 9% | 9% | 9% | 9% |
| Women Ownership | Yes | Yes | NA* | NA* |
| Property should be family’s | 1st property | 1st property | 1st property | 1st property |
| Location | 9694 towns | 9694 towns | Urban-2011** | Urban-2011** |
***Maximum Allocated Area or Carpet Area is the total usable floor dimension of an apartment which does not include the area of the external walls but covers the area of partition walls within an apartment.
** Under Urban-2011, 9694 Statutory Towns and the Planning Area near the relevant municipal area are a part of this scheme.
*For MIG1 and MIG2, Ownership for Women is not available at present.
After gaining the information about Pradhan Mantri Awas Yojana detailsand the various home loan options for EWS, LIG, and MIG category you can apply for PMAY online on the official website http://pmaymis.gov.in. After filling in all the details, you will get an application number generated by a system that is helpful for documentation. Download and print the form and submit it to the nearby CSC office centers or banks along with the required documents.
