Pradhan Mantri Awas Yojna Eligibility Criteria

The introduction of the PMAY has made buying a home easy for all. But, to qualify for its benefits, you meet certain scheme’ requirements. Read on to know more about it.

The Pradhan Mantri Awas Yojna is an ambitious affordable housing scheme that was launched in 2015. Under the project, the government aims to build more than two crores new pucca houses and provide permanent shelter to poor citizens. Apart from building new homes, under the CLSS (Credit Linked Subsidy Scheme), which is an integral part of the PMAY, the government aims to help the people from lower and middle-income groups become homeowners by offering them a subsidy on the home loan interest rate.

 The subsidy benefits are available provided you meet certain eligibility requirements listed by the government. If you are looking to apply for a home loan under the Pradhan Mantri Awas Yojna, you must meet the following criteria:

• You must belong to any of the following income groups – EWS (Economically Weaker Section), LIG (Lower Income Group), MIG – I, or MIG – II (Middle Income Group). The income category is decided based on the annual income of the household. For EWS and the LIG, the total yearly income of the family must be between Rs. 3 lakhs and Rs. 6 lakhs. For MIG – I, the total household income, must not be more than Rs. 12 lakhs per annum, and for MIG – II, the income limit is Rs. 18 lakhs.

• To benefit from home loan interest subsidy under the Pradhan Mantri Awas Yojana, you or any of your family members must not own a pucca house in any part of India.

• Another important eligibility you must note is that, if you or your family members have availed financial assistance under any other central government or state government housing scheme, you will not be eligible for the PMAY benefits.

• If you belong to the MIG income group, you must mandatorily have an Aadhaar Card; it is an important document you must submit to the lender while applying for a home loan under PMAY.

• If you are applying for a home loan under PMAY to construct your own house or extend the existing house, then the construction or the extension work must be finished within 36 months from the date of the first instalment of the loan amount. If you fail to complete the work, you will not be eligible to receive the interest subsidy benefits guaranteed under PMAY.

• If you belong to either the EWS or the LIG income group, then the house you purchase or construct must necessarily be registered in the name of a female member of the family, either as a full owner or co-owner, irrespective of whether they contribute towards the loan repayment. The requirement is not applicable only if your family does not have an adult female member.

• People belonging to the EWS category are eligible to get complete assistance under the PMAY. But people from the LIG and MIG categories are only eligible for the CLSS under PMAY.

• If you are married, you can either jointly apply for a loan with your spouse or apply for the loan individually, but you are eligible for a single subsidy.

Now that you are aware of the various eligibility requirements of the PMAY make sure that you review your home loan application carefully and apply for the appropriate income category to get maximum benefit. You can apply for a home loan with any lender of your choice provided the lender is authorised to extend the PMAY benefits to you.

Ensure that you do your research well about the different lenders and choose the one that offers the loan at a competitive interest rate so that you can easily afford the EMI repayment.