PMAY scheme or the Pradhan Mantri Awas Yojana is a flagship scheme launched by the Indian government in 2015. It is a subsidy-linked housing scheme aiming at providing affordable housing to the rural and urban poor. PMAY initiative adheres to CLSS or Credit Linked Subsidy Scheme.
Beneficiaries under this scheme are extended interest subsidy on housing loans availed to purchase or construct a new house. The core goal is to offer better and low-cost housing facilities for all. By 2022, the government looks to achieve the goals of this ‘Housing for All’ mission.
Maximum home loan limit of PM Awas Yojana
Interest subsidy under the PMAY scheme is provided based on the economic category of beneficiaries. Different subsidy rates have been specified for different categories. Check them below –
- Economically Weaker Section (EWS): Annual income not exceeding Rs.3 lakh
- Lower Income Group (LIG): Annual income above Rs.3 lakh but below Rs.6 lakh
- Middle Income Group-I (MIG-I): Annual income above Rs.6 lakh but below Rs.12 lakh
- Middle Income Group-II (MIG-II): Annual income above Rs.12 lakh but below Rs.18 lakh
The maximum permissible amount for subsidy under the PMAY scheme ranges between Rs.2.30 Lakh to Rs.2.67 Lakh. Given below are the category-wise subsidy rates of PM Awas Yojana –
- EWS – 6.5% per annum
- LIG – 6.5% per annum
- MIG-I – 4% per annum
- MIG-II – 3% per annum
Now, based on these very categories, the maximum limit on a home loan is also specified. Check below –
- EWS – Up to Rs.6 lakh
- LIG – Up to Rs.6 lakh
- MIG-I – Up to Rs.9 lakh
- MIG-II – Up to Rs.12 lakh
To help applicants and beneficiaries understand their subsidy share, various portals now feature PMAY eligibility calculator. It computes the subsidy amount based on inputs like income, loan amount, carpet area, tenor, etc.
How can you avail PM Awas Yojana benefit on home loans?
To avail the benefits, you can apply for the PMAY scheme online. The online procedure to apply under this scheme is detailed below –
- Visit the official portal of Pradhan Mantri Awas Yojana.
- Click on the option ‘Citizen Assessment’ under the main menu.
- After that, select the applicant category.
- You will be redirected to a new page, where you will have to enter Aadhaar details.
- Fill up the application form and provide the required information related to your income, residential address, etc.
- Recheck the information you have entered.
- Enter the displayed captcha code correctly, and submit your application.
Although the online mode of application is the most convenient way to enrol under this housing scheme in India, some applicants might prefer the offline form. They can visit a CSS (Common Service Centre) run by the state government and fill up the provided application form.
The application procedure to apply under the Slum Dweller category is slightly different from this. Take a look –
- Visit the official Pradhan Mantri Awas Yojana portal.
- After opening the ‘Citizen Assessment’ tab, select the option ‘For Slum Dwellers’.
- Enter your Aadhaar card number, and click on ‘Submit’.
- After the verification has been conducted, you will be redirected to a new page.
- Enter relevant details of your name, address, employment, etc., as asked.
- Now, recheck the information you have typed.
- Enter the captcha code, and submit your application.
Both new and existing home loan borrowers can draw subsidy benefits through PMAY 2021. But the eligibility requirements remain the same for both.
Alternatively, one can also avail a home loan from any of the reputed financial institutions in the country, against nominal eligibility and suitable terms.
Doing so, borrowers can also enjoy a range of pre-approved offers on home loans, loans against property, etc. These offers make way for faster, simpler, and convenient access to avail credit. Check your pre-approved offer by providing your name and contact number.
Beneficiaries of the PMAY scheme can avail interest subsidy up to Rs.9 lakh. Such housing loans must have a tenor of not more than 20 years.