2 min read
25 May 2021

PMAY or Pradhan Mantri Awas Yojana seeks to bridge the gap for those individuals who are not homeowners but are planning to buy their first home by providing interest and tax subsidies. The immediate target of the government is to move 20 million urban poor into a house of their own by 2022. The PMAY scheme has been well received and regarded as a well-thought-out incentive for the low-income and mid-income groups in India. In addition, the fact that realtors are coming up with developments offering affordable housing is further fuelling the scheme's growth.

To check if you too can apply under this scheme, see the Pradhan Mantri Awas Yojana eligibility criteria below. As PMAY covers a lot of groups/sections, the eligibility is divided into various sections. They are:

1. Economically Weaker Section [EWC]

Any household where the income is less than Rs. 3 lakhs per annum falls under the EWS category. However, merely stating a claim is not enough; if your household falls under this category, you need to provide documentary evidence of the annual income to apply. Here you get a maximum interest subsidy of Rs. 1.33 lakh to Rs .2.67 lakh depending on your eligible loan amount. This amount is divided into Rs .3 lakh, Rs .6 lakh, and Rs .10 lakh.

2. Light Income Group [LIG]

The Light Income Group comprises households where annual income ranges between Rs. 3 to 6 lakh. The income of the family members is pooled together to determine whether you qualify for this category. You will need to prove your household income by presenting relevant documents. Here you get a maximum interest subsidy of Rs. 1.33 lakh to Rs. 2.67 lakh depending on your eligible loan amount. This amount is divided into Rs. 3 lakh, Rs. 6 lakh, and Rs. 10 lakh.

3. Medium Income Group [MIG1]

The first of the Medium Income Group category, the household income cap to apply under this group needs to be below Rs. 12 lakhs annually. Households under this category can avail of a housing loan with subsidised home loan interest rates for an eligible loan amount up to Rs. 9 lakh. The total interest subsidy you can avail of is Rs. 2.5 lakh.

4. Medium Income Group [MIG2]

The second of the Medium Income Group category caters to households with an annual income between Rs. 12 lakh and Rs. 18 lakh. These households are offered interest subsidies up to Rs. 2.3 lakh with an eligible loan amount of Rs. 12 lakh.

5. Minorities

Individuals belonging to minority groups such as Scheduled Castes, Scheduled Tribes, and OBC sections are also considered under the PMAY scheme. To apply under this section, you need to provide relevant caste and income certificates. The differently-abled and transgender people are also given preference.

6. Preference to women

Women are given a lot of importance under the PMAY scheme, and having a woman as a co-applicant is mandatory unless there is no female head in the family. Moreover, the scheme gives preference to women applicants, no matter whether they are single professionals, married, or widows. The total interest subsidy you can claim goes up to Rs. 2.67 lakh. In the same vein, women also receive an added exemption on stamp duty and nominal home loan interest rates by lenders regardless of income.

7. Existing home loan borrowers

If you already have approval on your home loan application or have been under review since January 2017, you will also be eligible for PMAY.

In an announcement made in January 2018, the government has slashed the GST rate from 12% to 8% for those qualifying for aid under the Pradhan Mantri Awas Yojana to reduce the cost of housing further.

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