Pradhan Mantri Home Loan Scheme: Features, Eligibility Criteria, Documentation

Pradhan Mantri Awas Yojana was launched on June 25, 2015, to facilitate housing for all by providing home loans on subsidy. It aims to provide housing facilities to the underprivileged people. The scheme aims to provide about 20 million houses by the end of March 31, 2022, using eco-friendly equipment and construction methods. The PMAY scheme is of keen advantage to the economically weaker sections and lower-income groups. It functions both in rural and urban areas in accordance with various other programs like Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, Jan Dhan banking facilities, and ensures access to drinking water and toilet facilities. 

Features of PM Awas Yojana

Interest subsidies based on income slabs: The Pradhan Mantri Awas Yojana provides housing loans on interest subsidy rates based on income slabs.

  • For loans, up to Rs 6 lakhs, a subsidy of 6.5 percent is provided to those who earn an annual income up to Rs 6 lakhs. The economically weaker sections and lower-income groups fall under this category.
  • For borrowings amounting up to Rs 9 lakh, the interest subsidy provided is 4%. This is for people earning up to Rs 12 lakh per annum who fall under the MIG-1 category.
  • For loans up to Rs 12 lakhs, the interest subsidy of 3% is provided. This is for people earning Rs 18 lakhs per annum, who fall under the MIG-2 category.
  • Loan tenure: Home loans under the PMAY scheme can be availed up to a maximum of 20 years.
  • Priority to the needy: The Pradhan Mantri Awas Yojana, focuses on underprivileged and needy groups of the society. These include senior citizens, differently-abled, scheduled class, scheduled tribe, and other economically weaker sections.

PMAY Eligibility

Though every Indian citizen can avail PMAY, yet there are certain prefixed conditions to avail of this housing scheme. The eligibility for Pradhan Mantri Awas Yojana is as follows:

  • The scheme can be availed by families who do not own a pucca house.
  • The family of the applicant or the applicant should not have availed of any Government subsidy under any housing scheme previously.
  • In case a couple opts for the PMAY home loan scheme, then they can avail of a single subsidy either in single or in joint ownership.
  • Apart the loan applicant needs to meet the carpet area requirements. For MIG 1 category applicants, the eligible carpet area is 160 square meters, and for MIG 2 categories, it is 200 square meters. 

Pradhan Mantri Awas Yojana Documents required

To avail, the benefits associated with Pradhan Mantri Awas Yojana, fulfilling the documentation requirement is a prerequisite. Documents required for PM Awas Yojana are listed as follows:

  • Identity proofs: These include documents such as aadhar card, PAN card, or passport
  • Age proofs: This includes documents like a driving license or voter id card
  • Address proof: Proof of address can be submitted through ration card or utility bills such as water or electricity
  • Property sale and purchase agreements to ensure that the legal formalities were undertaken to buy a home
  • Registration certificates from the municipal authorities to validate the existence of the property
  • Income proofs: Income proofs include documents like salary slips, bank statements or passbook copies, ITR document or Form 16

Keeping in view the fact that owning a home is an important infrastructural requirement, it can be said that Pradhan Mantri Awas Yojana is a great initiative. What keeps the scheme at par with other housing schemes is affordability, and emphasizes on underprivileged groups and eco-friendly measures for construction of a home. The scheme will possibly help a majority of the Indian population achieve their housing dreams along with maintaining parallelism with the low budgets.