PMAY or the Pradhan Mantri Awas Yojana was launched by the Government of India back in 2015. Its mission is to provide affordable housing to both rural and urban dwellers across India through the Credit Linked Subsidy Scheme in association with implementing agencies.
In the budget session of 2019, the Finance Minister of India projected a target of building approximately 1.95 Crore to 2 Crore houses in 3 years from the financial year 2019-20 to 2021-22. Running with a mission of ‘Housing for All’, the scheme aims to reduce the duration of house construction from 314 days back in 2015-16 to 114 days at present.
The Pradhan Mantri Yojana will operate under two segments for the next three years – Urban and Gramin.
There are several key benefits of the Pradhan Mantri Awas Yojna, subsidy on home loan interest rate under the CLSS being one of them.
A Look at the Income Groups and Available Interest Subsidy
- For the Middle-Income Group – Interest subsidy of up to 4% available on home loans for construction or acquisition of the house.
- For the Lower Income Group and Economically Weaker Section – Interest subsidy of up to 6.50% available on home loans for house construction and acquisition. Here, individuals can also receive interest subsidy on housing loan taken for constructing rooms, toilets, kitchens, etc. to an existing house.
Beneficiaries of Pradhan Mantri Awas Yojana
Under this renewed scheme, the beneficiaries can either be a household or family, including husband, wife, unmarried sons, and unmarried daughters. Or it can be an adult member of the family with individual income who will be considered as a separate household.
As per the latest update, women can receive priority of house registration under this scheme. Therefore, women meeting the PMAY eligibility can acquire a new house conveniently under this scheme.
Now, check out the PMAY eligibility Criteria lenders would require you to meet to avail a home loan under the PMAY scheme.
Eligibility Criteria You Should Meet to Avail a Housing Loan
For salaried individuals
- Age between 23 and 62 years.
- Be a resident of India.
- Be a salaried individual with at least three years of work experience.
For self-employed individuals
- Should be an Indian resident.
- Must age between 25 and 70 years .
- Must be self-employed with a business continuity of at least 5 years.
Additionally, the person must also earn within the income range based on the economic group he/she belongs to.
- Economically weaker section – Rs. 0 to Rs. 3,00,000 per annum.
- Low-income group – Rs. 3,00,001 to Rs. 6,00,000 per annum.
- Middle-income group I – Rs. 6,00,001 to Rs. 12,00,000 per annum.
- Middle-income group II – Rs. 12,00,001 to Rs. 18,00,000 per annum.
For these income groups the eligible housing loan amount they can avail to receive interest subsidy is up to Rs. 6 Lakh, Rs. 6 Lakh, Rs. 9 Lakh and Rs. 12 Lakh respectively.
So, choose your lender carefully and apply for your Pradhan Mantri Awas Yojana loan to finance the purchase of your house. Receive interest subsidy and repay your loan conveniently.