If you must select between renting a house and owning one, which option will you choose? Many would, of course, opt for buying a property as it is the most lucrative and prudent approach. After all, you can substitute your monthly rent with EMI payments; the latter will help you to become a proud homeowner. And why not increase your existing assets by investing in something whose value will appreciate exponentially in the future?

Pradhan Mantri Awas Yojana (PMAY) - Overview

Owning a home will provide a plethora of benefits and if you already own multiple properties, then you can rent out the same. This will provide you with an additional income and ensure your financial prosperity. After all, real estate is one of the most lucrative markets where you can invest. Purchasing a new house is a topmost priority and an urgent need for many Indian citizens.

To facilitate this, the Pradhan Mantri Awas Yojana was launched on 17th June 2015. The mission of this scheme is “Housing for All” and intends to accomplish just that. You will be surprised to know that the Credit-Linked Subsidy Scheme falls under the Pradhan Mantri Awas Yojana. Let us look at the services this policy has to offer for different income groups.

This scheme offers home loan interest subsidy to the middle-income group (MIG). It can be availed for acquisition and/or construction of property.

People belonging to the Lower Income Group (LIG)/Economically Weaker Section (EWS) will also receive the interest subsidy on home loans for acquisition and/or construction of property. The Credit Linked subsidy will also be provided for housing loans to customers falling under this category. It can be availed by existing tenants for construction of additional rooms, toilet, kitchen, etc. This benefit is synonymous with the term ‘incremental housing’

Your interest subsidy benefit will be determined by the outstanding principal amount. Applicants should fulfil the income criteria as mentioned in the scheme to avail its benefits. Let us understand the definition of the term beneficiary in the context of this policy. It comprises family members like husband/wife, unmarried daughters and/or unmarried sons. An adult earning member of the family will not be considered as a beneficiary and can be included in the separate household category. Read on to know more and understand the steps involved in the Bajaj Finserv lending process.  

Particulars

EWS

LIG

MIG I

MIG II

Total Household Income (Rs. p.a)

0-3,00,000

3,00,001-6,00,000

6,00,001-12,00,000

12,00,001-18,00,000

Housing Loan Amount Eligible for Interest Subsidy (Rs.)

Up to 6,00,000

Up to 6,00,000

Up to 9,00,000

Up to 12,00,000

Interest Subsidy (% p.a.)

6.50%

6.50%

4.00%

3.00%

Maximum loan duration/tenure (in years)

20

20

20

20

Maximum dwelling carpet area

30 Sq. m.

60 Sq. m.

160 Sq. m.

200 Sq. m.

Discount Rate for Net Present Value (NPV) calculation of interest subsidy (%)

9.00%

9.00%

9.00%

9.00%

Maximum Interest Subsidy Amount (Rs.)

2,67,280

2,67,280

2,35,068

2,30,156

Lump sum amount paid per sanctioned to PLIs in lieu of Processing Fee (Rs.) to the extent of loan amount on which subsidy is applicable.

3000

3000

2,000

2,000

Application of scheme on existing home loans sanctioned on or after

17.06.2015

01.01.2017

Applicability of No Pucca House

Not for renovation/upgradation

Yes

Yes

Woman Ownership/Co-ownership

Compulsory for new acquisition, Not compulsory for existing property

Not compulsory

Not compulsory

Quality of House/Flat Construction

National Building Code, BIS Codes and according to NDMA Guidelines adopted

Approvals for the Building Design

Mandatory

Basic Civic Infrastructure (water, sanitation, sewerage, road, electricity etc.)

Mandatory

This beneficial scheme is provided by reputed institutions like - Finserv MARKETS. By availing a Bajaj Finserv loan you will be also provided with a host of other benefits like minimal documentation, transparency, quick loan amount disbursement and many more.

Let’s consider the key parameters of this scheme through the subsequent table.

The details mentioned above are subject to change and it’s important to be equipped with the latest information. This scheme was launched by the Government of India. Only the government can authorise any changes in the offerings.

If you fall under the above-mentioned income categories, then you should definitely think about applying for your Bajaj Finserv loan under this scheme. Reputed lenders like Finserv Markets will help you get the best deal for your home loan. You can contact our executives if you have any further doubts regarding this government scheme. 

You can contact our executives if you have any further doubts regarding this government scheme.

Find answers to other PMAY FAQs here. 

Know more about PMAY online application form.

Pradhan Mantri Awas Yojana Parts

Pradhan Mantri Awas Yojana aims to provide housing at an affordable price to the lower income group people, urban poor, rural poor and weaker sections of the society.

  • The annual income cap for Economically Weaker Sections (EWS) is of Rs 3 lakh

  • The annual income cap for Middle Income Groups (MIGs) is between Rs 6 to 18 lakh.

  • The maximum yearly income for Lower Income Groups (LIGs) applicants are set between Rs 3 to 6 lakh.

Components of PM Awas Yojana

Pradhan Mantri Awas Yojana (PMAY) offers affordable housing to the urban poor with a target of building 20 million affordable houses by 31st March 2022. The PM Awas Yojana is divided into two components. They are as follows:

  1. Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor

  2. Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G) and (PMAY-R) for the rural poor.

How to Apply for Pradhan Mantri Awas Yojana

Make sure your name is listed in the beneficiary list of the “Pradhan Mantri Awas Yojana” to be eligible to apply for the scheme. Here’s a step by step online application process to apply for a PM Awas Yojana

Step 1:

To apply for the scheme you need to visit the official website online at http://pmaymis.gov.in/

PMAY Portal

Step 2:

Under the ‘Benefits under other 3 components’ option choose one component and select the ‘Citizen Assessment’ from the dropdown.

Step 3:

Now fill in your Aadhaar Card number and click on submit to verify your Aadhaar details.

PMAY Portal

Step 4:

After the verification you will be redirected to the next page where you will have to provide information like your name, income, no. of family members, residential address, contact number, etc.

PMAY Portal

Step 5:

Once all the information is filled in type the captcha code in the box and submit.

PMAY Portal

In case of any errors made during filling up the application , you can edit the form with the help of your Application and Aadhaar number.

List of Banks Providing PMAY Scheme

List of Banks/NBFCs/HFCs for PMAY Scheme

ICICI Bank Ltd

Bajaj Housing Finance Limited

Axis Bank Ltd

Fullerton

HDFC

LIC Housing Finance

Karnataka Bank Ltd

SBI

Karur Vysya Bank Ltd

Indiabulls

Kotak Mahindra Bank

Bank of Baroda

Yes Bank

IIFL

Eligibility For PM Awas Yojana

  • To be eligible the beneficiary family should not own a pucca house in India under his/her name of any member of his/her family.

  • Married couples, either of the spouse or both together in joint ownership are eligible for the PMAY subsidy scheme.

  • The beneficiary family should not have previously availed any central assistance under any government housing scheme of India.

Document Required For Pradhan Mantri Awas Yojana

  • Documents for proof of identity such as PAN card, Voter ID, Aadhar Card, passport, driver’s license, etc.

  • Documents for Proof of Address such as Voter Card, Aadhar Card, Valid Passport, Latest Utility bill, etc.

  • Documents for Proof of income such as Salary slip of the previous 2 months, Latest and for salaried individuals bank account statement of the last 6 months is required.

Other Documents:

  • Copy of the complete chain documents of the property

  • A copy of the Sale Agreement

  • An Allotment Letter / Buyer Agreement

  • Copy of the payment receipt made to the developer

Tax Benefit under PM Awas Yojana

Under the PM Awas Yojan, the government has decided to reduce the GST rates from 12% to 8% on all the applicable home loans under the PMAY CLSS (Credit Linked Subsidy Scheme). For properties that are still under construction under the CLSS will be eligible for a reduced GST of up to 8%. Applicants under the Economically Weaker Section (EWS), Middle Income Group (MIG), and Low Income Group (LIG) can avail the benefits of these reduced rates. The reduced GST allows scope for sufficient incentive for the builders and developers under the PM Awas Yojana.

FAQ’s on Pradhan Mantri Awas Yojana

  • ✔️What is the definition of PMAY beneficiary family?

    A beneficiary family consists of a husband, wife and their unmarried children. Such beneficiaries should not own a house either in his / her name or in the name of any member of his / her family in any part of India.

  • ✔️Is this PMAY subsidy applicable for properties in rural areas?

    No, the PMAY subsidy is not applicable for properties in the rural areas. Also, Individuals who already own a pucca house or have availed benefits from other central/state government housing schemes are not eligible. Applicants with an annual income of more than Rs. 18 lakhs do not qualify for the PMAY subsidy scheme.

  • ✔️What is the process of claiming PMAY interest subsidy?

    • Once your PMAY subsidy amount is disbursed, the lender will send the required details to the National Housing Bank (NHB) for data validation and other checks.

    • NHB after due diligence approves the subsidy and the amount will be disbursed to the lender for all eligible borrowers.

    • On receiving the subsidy amount from NHB, the lender will credit the same to the home loan account of the borrower and the funds will get adjusted in the loan.

  • ✔️Can a beneficiary family get a loan term beyond 20 years under PMAY CLSS scheme?

    No, the maximum term of loan for beneficiaries is 15 to 20 years.

  • ✔️What is the maximum tenure for the PMAY scheme?

    The maximum tenure of PMAY subsidy scheme is 20 years.

  • ✔️My family’s annual income is Rs. 2.60 Lakh. Which income group do I fall under, as per PMAY?

    Families that have an annual income lower than Rs. 3 Lakh fall under the Economically Weaker Sections (EWS) of PMAY subsidy.

  • ✔️What programs are covered under this scheme?

    The following programs are covered under this scheme: Bringing private and public sector together for facilitating affordable housing development. Slum rehabilitation Offering credit-linked subsidy for the economically disadvantaged. Constructing and improving beneficiary led houses.

  • ✔️What is this scheme focused on?

    It focuses on affordable housing for all, especially for the country’s economically weaker sections.

  • ✔️What is the eligibility criterion for this scheme?

    The following are the clauses: The individual and his/her family should not own any brick and mortar houses under their name or any other family member’s name. Any person currently owing a solid structured (pucca) house cannot apply for this scheme. The maximum income per year to avail EWS or LIG should be up to Rs. 6 Lakh. To avail MIG1, your income should be between 6-12 lakh rupees per year. To be eligible for MIG2, your annual income should be in the range of 12 to 18 lakh rupees per year.

  • ✔️What do you mean by CLSS, MIG, LIG and EWS?

    CLSS: Credit Linked Subsidy Scheme.

    MIG: Middle Income Group

    LIG: Low Income Group

    EWS: Economically Weaker Sections

  • ✔️What are the processing fees?

    There are no processing fees for this scheme.

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