Everyone dreams of living in a house which they can call their own. After all, it is a basic necessity of life. Fortunately, to turn this dream of yours into reality, Prime Minister Narendra Modi has launched the Pradhan Mantri Awas Yojana (PMAY). Launched on 17 June 2015, this is a government-initiated housing scheme which is aimed at ‘housing for all by 2022’. Let’s learn all about Pradhan Mantri Awas Yojana.
What is Pradhan Mantri Awas Yojana?
Pradhan Mantra Awas Yojana (PMAY) is a Credit-Linked Subsidy Scheme (CLSS) on home loans which can be availed for new or resale purchase of home, extension or construction. The scheme aims at building two crore houses for the urban and rural population of India by the year 2022. This is basically a policy to promote affordable housing for low-income groups and economically weaker sections of society. PMAY is applicable across two different sections:
- PMAY-U for urban population and
- PMAY –G for the rural population
PMAY-U includes subsidy schemes for the economically weaker section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG I and MIG II). This classification is based on the beneficiary’s income, financial standing and their housing needs.
Classification of the beneficiaries is dependent on the income groups they fall in:-
|Income group||Annual household income (Rs.)|
|EWS||Up to 3 lakhs|
|LIG||From 3,00,001 to 6,00,000|
|MIG I||From 6,00,001 Lakhs to 12,00,000|
|MIG II||From 12,00,001 to 18,00,000|
How can it benefit you?
Basis your income group and the category you fall into, you can avail a subsidy on home loan under the Pradhan Mantri Awas Yojana.
- Under this scheme, a maximum subsidy of 6.5% can be availed for a term of 20 years.
- Mandatory provision of ground floor accommodation for senior citizens and differently abled citizens.
- Houses constructed under this scheme would use eco-friendly technology.
- The subsidy amount is as follows:-
|Particulars||LIG||MIG I||MIG II|
|Household Income (Rs. p.a)||Rs. 3,00,001-6,00,000||Rs. 6,00,001-12,00,000||Rs. 12,00,001-18,00,000|
|Eligible Housing Loan Amount for Interest Subsidy (Rs.)||Up to 6,00,000||Up to 9,00,000||Up to 12,00,000|
|Interest Subsidy (% p.a.)||6.50%||4.00%||3.00%|
|Maximum loan tenure (in years)||20 years||20 years||20 years|
|Maximum dwelling unit carpet area||60 Sq.m./645.84 sq.ft.*||160 Sq.m./1722 sq.ft.||200 Sq.m./2152.78 sq.ft.|
|Max. Interest Subsidy Amount (Rs.)||2,67,280||2,35,068||2,30,156|
|Discount Rate for Net Present Value (NPV) calculation of interest subsidy (%)||9.00%||9.00%||9.00%|
|calculation of interest subsidy (%)|
Looking at the ambitious features and benefits associated with this scheme, PMAY can definitely help fulfill your dream of living in your home.
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