The Pradhan Mantri Awas Yojana, also known as PMAY, came into effect on the 17th of June 2015 in an attempt to offer affordable housing to the citizens of India. It is a Central Government initiative to provide subsidized home loans to the economically weaker sections, lower-income group, and middle-income group individuals. Considering the simultaneous rise in price and demand of the real estate properties, this is yet another attempt to increase the affordability of housing.
In the case of potential applicants of this scheme, here are some of the most commonly asked questions regarding this flagship housing initiative.
FAQ 1: What is the objective of PMAY?
Answer: PMAY carries the motto of housing for all and offers subsidized housing loan rates, thereby making residence-purchase a feasible option for all irrespective of the income strata. The scheme has taken a target of constructing over 20 million houses by the 31st of March 2022.
FAQ 2: What are the benefits of PMAY?
Answer: Given below are some of the key benefits of the Pradhan Mantri Awas Yojana, such as-
Beneficiaries get to avail substantial subsidy.
The scheme covers all parts of India.
Housing to all, irrespective of the strata of society.
Additional benefits for minorities and women.
Properties constructed under this scheme use advanced eco-friendly techniques.
Both Gramin and Urban residents can get a house via PMAY.
FAQ 3: What are the required eligibility criteria?
Answer: To apply for a subsidized home loan under this scheme, you are required to meet the PMAY eligibility as follows:
Individuals are divided into two categories depending on their annual income. To apply, they need to have an annual income that ranges between –
Economically Weaker Sections – Within Rs. 3 Lakh
Lower - Income Group – Between Rs. 3 Lakh and Rs. 6 Lakh
Middle-Income Group I (MIG-I) – Rs. 6 Lakh to Rs. 12 Lakh
Middle-Income Group II (MIG-II) – Between Rs. 12 Lakh and Rs. 18 Lakh.
Besides, individuals from the Scheduled Caste (SC), Scheduled Tribes (ST), and Other Backward Classes along with women can also apply for advances under this scheme.
Alternatively, if you fail to cater to the eligibility criteria, you can avail advances to support the purchase of your house. NBFCs like Bajaj Finserv offers Home Loan at an attractive interest rate that is also PMAY compliant. On their home loans, borrowers can also enjoy balance transfer facilities, top-up loans, instant approval, faster disbursal, part prepayment and foreclosure facilities, etc.
FAQ 4: What are the subsidy rate and loan amounts?
Answer: Depending on the economic category you belong, you can avail a Pradhan Mantri Awas Yojana loan at a subsidy of -
Economically Weaker Sections – Subsidy of 6.5% with a loan amount of up to Rs. 6 Lakh
Lower-Income Group – Credit amount of up to Rs. 6 Lakh at a subsidized interest rate of 6.5%
Middle-Income Group I (MIG-I) – Avail a loan amount of up to Rs. 9 Lakh at an affordable rate of 4%
Middle-Income Group II (MIG-II) – A subsidy of 3% with a loan amount of up to Rs. 12 Lakh
FAQ 5: What is the net usable carpet area?
Answer: The net usable carpet area of the house allotted varies as per the income strata of the applicants -
Economically Weaker Sections - 30 square meters.
Lower-Income Group – 60 square meters.
Middle-Income Group I (MIG-I) – Rs. 160 square meters.
Middle-Income Group II (MIG-II) – 200 square meters.
Under the Pradhan Mantri Awas scheme, the maximum loan tenor that you can avail is up to 20 years. All those applicants need to keep in mind is that to obtain the housing benefits under this scheme, he/she should not possess any other housing under the schemes issued by Central or State Government.