Pradhan Mantri Awas Yojana: How to Avail of Home Loan Subsidy?

such individuals. It offers subsidies on home loans to make homeownership more accessible to all. Understanding how to avail of these subsidies is important, as it brings you one step closer to being a proud homeowner. So, continue reading to gain more insights on the same.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme first introduced by the Government of India in 2015. The initial aim of PMAY was to provide affordable housing to urban and rural poor citizens by March 2022. However, the implementation period of the scheme has been extended until 31^st December 2024. The Union Cabinet arrived at this decision following the requests made by the Union territories and states.

PMAY has two components: PMAY Urban & PMAY Rural. Each caters to different income groups and demographics. Its overarching goal is to address housing shortages and improve living conditions across the country. Here are some of the key features of the scheme:

• A low-interest rate of 6.50% p.a. on housing loans for 20 years
• Preferential ground floor allocations for senior citizens and differently-abled individuals
• Inclusion of 4041 statutory towns, with priority given to 500 Class I cities in 3 phases
• Construction processes focused on environmentally conscious and sustainable practices
• The implementation of the credit-linked subsidy is initiated right from the project’s outset, encompassing all statutory towns in India

Eligibility Criteria for Home Loan Subsidy

The Government of India has made the Pradhan Mantri home loan subsidy available for three income groups: Economically Weaker Sections (EWS), Middle-Income Groups (MIG-I & MIG-II), and Low-Income Groups (LIG). Here is the set of criteria each category must fulfil:

EWS:

Yearly household income should be up to ₹3 lakh

MIG-I:

Yearly household income should be between ₹6 lakh to ₹12 lakh

MIG-II:

Yearly household income should be between ₹12 lakh to ₹18 lakh 

LIG:

Yearly household income should be between ₹3 lakh and ₹6 lakh

Besides this, the following are some other basic requirements applicants should satisfy:

• The beneficiary or their family should not own a pucca house anywhere in India. This applies to all the categories.
• The beneficiary must provide relevant income proof, based on the category under which they fall.
• Individuals belonging to minority groups like ST/OBC/SC will be categorised as minorities. They must present relevant caste and income certificates to be considered for the loan subsidy.
• If the beneficiary is a family, it must consist of a wife, husband, and unmarried children. Moreover, no member of the family should have a house to their name. 
• Women who come under EWS/LIG categories shall be considered for subsidy if they apply under the PMAY scheme. 

Documents Required for Home Loan Subsidy

Here’s a list of documents you must provide to avail of the PMAY home loan subsidy:

• Aadhaar number (of each member of the family)
• Caste certificate
• Voter’s ID
• Income proof
• Bank account details (Account number, ISFC, etc.)
• Recent passport-sized photograph

How to Apply for PMAY Loan?

The following are the steps to apply for PMAY home loan online:

1. Visit the official PMAY portal to initiate the application process.
2. On the website, look for the ‘Citizen Assessment’ section
3. Click on the drop-down menu and choose ‘Benefit under 3 components’ to start your application
4. Provide your Aadhaar details (this is mandatory for the application process)
5. Enter your personal information, like your full name (as mentioned on your PAN Card), valid contact number, bank account number, income details, etc.
6. Save your application form and enter the provided captcha code. Do so before submitting your form
7. Take a printout of the submitted form for future reference

How to Avail of PMAY Subsidy?

Here’s how to get a PMAY subsidy:

• Ensure that your home loan is approved before 31^st December 2024.
• You need not claim the subsidy in person; the home loan provider will take care of it on your behalf.
• File a declaration confirming that you meet the specified eligibility requirements.
• After a successful application, the lending institution will complete all the necessary formalities and make the claim on your behalf.
• Once the nodal agency, like the National Housing Bank, approves the loan subsidy, it will be disbursed to your home loan account automatically.

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FAQs

Who is eligible for a PMAY subsidy of ₹2.67 lakh?

If you fall under the EWS (Economically Weaker Sections) or Low-Income Group (LIG) category, you can get a subsidy at a rate of 6.50% on a loan amount of up to ₹6 lakh. The maximum subsidy loan amount you can get is ₹2.67 lakh.

How is the PMAY subsidy credited?

The PMAY subsidy is credited directly to the loan account of eligible beneficiaries by the lending institution upon loan approval.

How long does it take to receive PMAY subsidy after application?

The timeframe varies but generally takes a few weeks to a couple of months, depending on the processing time of the relevant authorities.

Can I avail of a PMAY subsidy for home renovation or improvement?

No, the PMAY subsidy is specifically for purchasing or constructing a new home, not for renovation or improvement purposes.