Pradhan Mantri Awas Yojana is one of the most popular govt. housing schemes introduced to provide affordable housing targeted for completion by 2022. This credit-linked subsidy scheme was launched in 2015 and is directed towards the underprivileged population of the rural and the urban areas.
So far, 35 lakh houses have been constructed and occupied by the beneficiaries of this government housing scheme. Nevertheless, to become a beneficiary under the PMAY scheme, individuals need to meet certain requirements and complete some specific formalities.
PMAY Key Parameters
|Household income (rupees per annum)||0-3,00,000||3,00,001-6,00,000||6,00,001-12,00,000||12,00,001-18,00,000|
|Eligible housing loan amount for interest subsidy (in rupees)||Up to 6,00,000||Up to 6,00,000||Up to 9,00,000||Up to 12,00,000|
|Interest subsidy (% per annum)||6.50%||6.50%||4.00%||3.00%|
|Maximum loan tenor (in years)||20||20||20||20|
|Maximum carpet area of the dwelling unit||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 (in rupees)||2,67,280||2,67,280||2,35,068||2,30,156|
|Application of scheme on existing home loans sanctioned on or after||17.06.2015||17.06.2015||01.01.2017||01.01.2017|
|Applicability of no pucca house||Not for renovation/upgradation||Not for renovation/upgradation||Yes||Yes|
|Ownership/co-ownership of a woman||Mandatory for new acquisition, Not mandatory for existing property||Mandatory for new acquisition, Not mandatory for existing property||Not mandatory||Not mandatory|
|Quality of house/flat construction||National Building Code, BIS Codes, NDMA Guidelines to be adopted||National Building Code, BIS Codes, NDMA Guidelines to be adopted||National Building Code, BIS Codes, NDMA Guidelines to be adopted||National Building Code, BIS Codes, NDMA Guidelines to be adopted|
|Approvals for building design||Compulsory||Compulsory||Compulsory||Compulsory|
|Basic civic infrastructure (water, sanitation, sewage, road, electricity etc.)||Compulsory||Compulsory||Compulsory||Compulsory|
Eligibility Criteria for PMAY Scheme 2021
To avail benefits under this housing scheme, individuals must meet the following requirements –
- Applicants should not own a pucca house.
- They should not have obtained benefits under other housing schemes.
- A woman family member’s name should be in the property deed or paper as a standalone owner or as a co-owner.
- Applicants should belong to any of these categories – Economically Weaker Section, the Mid-Income Group – I & II or Low-Income Group.
- The property in question must be located in an area, town, village or city that made it to the Census 2011.
You must note that to back up your eligibility fulfillment and to initiate the verification process, applicants need to submit some relevant documents. Above all, one should remember that Aadhaar is mandatory for applying for not just this scheme but also other government schemes for housing.
Documents Required for Pradhan Mantri Awas Yojana 2021
The necessary set of documents include –
For salaried applicants
- Application form.
- Proof of identity and address.
- Bank statement, salary slip, and ITR.
- Property documents.
For self-employed applicants
- Proof of address.
- Balance sheet, profit and loss statement, and ITR.
Individuals need to submit all the required documents and fulfill accompanying formalities to avail the benefits of Pradhan Mantri Awas Yojana.
Tax benefits under the PM Awas Yojana
The govt. housing scheme allows individuals to claim tax benefits under these Sections of the Income Tax Act, 1961 –
- 80C – It will enable deduction of up to Rs.1.5 lakh p.a. on the principal loan amount.
- 24B – It extends tax deduction benefits of up to Rs.2 lakh p.a. on loan interest paid.
- 80EEA – Borrowers purchasing properties under the affordable housing category can claim a maximum of Rs.1.5 lakh p.a. as deduction on loan interest paid.
All these features and benefits make PMAY one of the top government schemes in India.
Subsidy under Pradhan Mantri Awas Yojana
Under this scheme, eligible applicants can avail subsidy on their home loan interest rates. It makes borrowing more affordable and repayment conveniently manageable.
Subsidy for EWS and LIG
- Individuals can avail of a maximum of up to Rs.2.67 lakh as subsidy.
- They will avail of interest rate subsidy at 6.5% for 20 years or for the tenure of the housing credit (whichever is earlier).
- Individuals can avail of subsidy for the financing of up to Rs.6 lakh. A home loan amount higher than that will not be applicable for subsidy.
Subsidy for MIG I & II
For MIG – I
- Individuals can avail of interest subsidy on a home loan at 4% for 20 years or for the loan repayment tenure (whichever is earlier).
- Individuals belonging to the MIG-I category are entitled to avail of subsidy on housing credit of up to Rs.9 lakh.
- They are entitled to receive a maximum of Rs.2.35 lakh as a subsidy.
For MIG – II
- Applicants can avail interest rate subsidy at 3% on housing loans for a tenure of 20 years or until their loan repayment tenure (whichever is earlier).
- Individuals belonging to the MIG-II group can avail subsidies of up to Rs.12 lakh on a home loan.
- MIG-II can receive a maximum of Rs.2.30 lakh as subsidy.
You must note that the subsidy amount will be credited to the beneficiary’s loan account and will help him/her repay at reduced EMI. To make the most of this subsidy, individuals should consider availing a home loan from a financial institution that extends housing credit at attractive rates and levies nominal charges.
Some leading financial institutions also offer customers with pre-approved offers that help to make the process of availing financial products less cumbersome while saving time. The offer is applicable on most financial products, like home loans and loans against property. Check your pre-approved offer online by just sharing your name and phone number.
While at it, individuals should also find out about the tax savings and other advantages offered by home loans and claim them accordingly. Doing so, they will be able to bear their loan liability even more affordable.
Lastly, individuals can apply for PMAY online and complete the entire process quickly. Once applied, they can check the beneficiary list of this govt. housing scheme on its official portal without any hassle and avail benefits accordingly.
know how to check PMAY List.