How Can PMAY Help You
Finance

How Can PMAY Help You?

Pradhan Mantri Awas Yojana (PMAY) is a housing scheme introduced by the government. The scheme was launched with the aim of providing financial assistance to poor citizens living in urban areas.

If you are planning to buy a house, then read this article to understand how PMAY can help you.

In order to make home purchase easy for people, the government introduced Pradhan Mantri Awas Yojana in 2015. Under this scheme, the beneficiaries will receive an interest subsidy on their home loan amount. This way, the government offers financial assistance to people who want to purchase a house. The aim of this scheme is to provide affordable housing to citizens.

Who are the Beneficiaries of PMAY?

Applicants are categorised based on their annual income. The interest subsidy provided to an applicant depends on the category he/she belongs to.

Economically Weaker Section (EWS)

  • Households with an annual income below Rs. 3 Lakhs belong to this category.
  • The interest subsidy that EWS applicants can receive is 6.5%.
  • The maximum loan tenure can be 20 years.
  • The maximum carpet area is 60 Sq. Mt.

Low Income Group (LIG)

  • Applicants with an annual household income between Rs. 3 Lakhs and Rs. 6 Lakhs belong to the LIG category.
  • The interest subsidy that the applicants can receive is 6.5%.
  • The maximum loan tenure for LIG applicants is 20 years.
  • The maximum carpet area is 60 Sq. Mt.

Middle Income Group I (MIG I)

  • Households with an annual income between Rs. 6 Lakhs and Rs. 12 Lakhs belong to the MIG I category.
  • MIG I applicants can receive an interest subsidy of 4%.
  • The maximum loan tenure can be 20 years.
  • The maximum carpet area is 160 Sq. Mt.

Middle Income Group II (MIG II)

  • Applicants with an annual household income between Rs. 12 Lakhs and Rs. 18 Lakhs belong to this category.
  • Applicants in this category can receive an interest subsidy of 3%.
  • The maximum loan tenure for applicants in this category is 20 years.
  • The maximum carpet area is 200 Sq. Mt.

PMAY Eligibility Requirements

  • If the applicant or any of his/her family members own a house, then he/she will not be eligible for the interest subsidy benefit.
  • The beneficiary family shouldn’t have received financial assistance from any of the housing schemes from the government.
  • In case of a married couple, the applicants can apply for joint ownership. However, they will receive a single subsidy.

How to Receive PMAY Subsidy?

  • You need to apply for a home loan at any listed bank and then apply for the subsidy.
  • The bank will review your application. If you are eligible, then the bank will send your application to the central nodal agency.
  • If your application is approved, then the central nodal agency will disburse the subsidy amount to the bank.
  • After receiving the subsidy, the bank will lower the total loan amount.
  • Then, you can pay the EMIs based on the remaining loan amount.

PMAY Subsidy Calculator

In order to calculate the subsidy amount, you can use a PMAY subsidy calculator. Once you enter details such as your annual household income, interest rate, home loan amount, etc., the calculator will calculate the subsidy amount.