Buying or building your first home is no trivial affair. If you are building a home, you also have to look for a reliable architect and maybe a contractor. Plus, there is all the paperwork to get through. And, of course, none of it comes cheap. So, you probably need to get a home loan as well.
That buying a house is a big and often daunting financial decision is common knowledge. This is where the Pradhan Mantri Awas Yojana (PMAY) steps in. Also referred to as the PM Awas Yojana the initiative was launched in 2015. The objective of PM Awas Yojana is to assist more and more Indians to buy their first house with the help of credit-linked subsidy scheme.
Who can apply under the PMAY scheme?
If you belong to any of these categories—Economically Weaker Section, Low Income Group, Middle Income Group-1, and Middle Income Group-2—you, too, can apply for the PMAY scheme.
However, funding under the Economically Weaker Section (EWS) and Low Income Group (LIG) categories are tied to the ownership. As per the scheme, the ownership of a house constructed or acquired under this scheme should be in
- the name of the female head of a household or
- the joint name of the male head of the household and his wife.
- Only in cases where there is no adult female member in a family, can a house be in the name of a male member of the household.
PMAY Scheme Eligibility
- Economically Weaker Section (EWS): To belong to this section you will have to have an annual income of no more than Rs.3 lakh per annum.
- Low Income Group (LIG): Citizens classified as belonging to the Low Income Group have an annual salary of Rs.3 lakh to Rs.6 lakh.
- MIG-1 (Middle Income Group-1): People in this income group have an annual income of Rs.6 lakh to Rs.12 lakh.
- MIG-1 (Middle Income Group-2): People belonging to this income group have an annual income of Rs.12 lakh to Rs.18 lakh.
In fact, you can utilize the PMAY eligibility calculator to get a fair idea which is easily available online. You just need to put the basic details like annual family income, loan amount, tenure, or carpet area.
Interest Subsidy available under Each Category
- EWS: If you belong to this category, you get an interest subsidy of 6.5% on a maximum loan amount of Rs.6 lakh.
- LIG: Like EWS, people belonging to this group can get an interest subsidy of 6.5% on a maximum loan amount of Rs.6 lakh.
- MIG-1: People belonging to this income group can get an interest subsidy of 4% on a maximum Loan amount of Rs.9 lakh.
- MIG-1: People belonging to this income group can get an interest subsidy of 3% on a maximum loan amount of Rs.12 lakh.
Maximum Subsidy Amount
- EWS: The maximum subsidy amount for this group is Rs.2.67 lakh.
- LIG: Same as the EWS category, the maximum subsidy available for this group is Rs.2.67 lakh.
- MIG-1: The maximum subsidy for this group is Rs.2.35 lakh.
- MIG-2: The maximum subsidy amount for this group is Rs.2.30 lakh.
With such wide coverage and fantastic terms that are being offered, buying your first home has now become super easy and less worrisome with the PM Awas Yojana scheme. So, go ahead and buy your first house at subsidised home loan interest rates, and repay it in very terms over 15 or 20 years, depending on the category you belong to!