Pradhan Mantri Awas Yojana and it benefits

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Launched by the Prime Minister, Pradhan Mantri Awas Yojana (PMAY) is a scheme that aims at providing housing for all. This welfare initiative was introduced in 2015 with the mission to build 2 Crore affordable homes for the poor people in cities by 2022. The PMAY is divided into two parts- PMAY (Urban) is for poor citizens living in the urban localities and PMAY (Gramin) is for rural citizens.

PMAY’s objective is to help people deal with the financial constraints of buying a house. The mission of the scheme is to offer cost-effective housing with standard amenities to the beneficiaries. To help citizens with the initiative’s benefits, the government has classified different categories. The financial help provided under the scheme will be based on the applicant’s category.

Scheme Categories

Based on the annual income of a household, the government has divided Pradhan Mantri Awas Yojana’s beneficiaries into 4 categories

  • Economically Weaker Section (EWS)
  • Low Income Group (LIG)
  • Middle Income Group I (MIG I)
  • Middle Income Group II (MIG II)

Economically Weaker Section (EWS)-

Households with an income under Rs. 3 Lakhs fall under the EWS category. The government offers 6.50% subsidy on a home loan for this category’s beneficiaries. Meanwhile, the home loan tenure is up to 20 years. The financial help will be provided to purchase or construct a house with a carpet of 30 Sq. Mt.

Low Income Group (LIG)-

Households with an income between Rs. 3 Lakhs and Rs. 6 Lakhs are categorised as LIG. The applicants will receive a subsidy of 6.50% when their application is approved. The carpet area limit for households in this category is 60 Sq. Mt.

Middle Income Group I (MIG I)-

Under MIG I category are the households that have an income up to Rs. 12 Lakhs. The subsidy limit for these households is 4%. The subsidy will be approved for a home that is up to 160 Sq. Mt.

Middle Income Group II (MIG II)-

MIG II category is for households with an income between Rs. 12 Lakhs and Rs. 18 Lakhs. These households are eligible for a loan subsidy of 3%. Meanwhile, the carpet area limit for them is 200 Sq. Mt.

PMAY’s Eligibility Requirements

A person applying for a subsidy under the PMAY needs to meet some prerequisites of the government such as-

  • In order to empower women, the government has made it necessary for the home to be owned or co-owned by a female member of the household. However, this requirement doesn’t have to be met by households with no females.
  • It must be the applicant’s first house. The subsidy application will be rejected if a family member of an applicant owns a home in the country.
  • Married couples can apply for joint ownership. However, they will only receive a single subsidy.
  • Applicants who have received financial help from a different housing scheme by the government aren’t eligible for PMAY.

If you meet these requirements, then you can be eligible to get the benefits of this scheme. You can look for a PMAY subsidy calculator online in order to find your subsidy amount limit.