What are the Eligibility Criteria for Availing the PMAY Subsidy?

According to a report, the Government has approved the construction of 3.61 lakh houses under Pradhan Mantri Awas Yojana Urban. This data indicates the increased opportunity for potential applicants to purchase a house under the said scheme.

Ideally, beneficiaries from the lower-income, middle-income, and economically weaker sections can gain credit-linked PMAY subsidy.

However, to receive the said benefits, individuals need to fulfil the basic eligibility parameters.

Eligibility criteria of the PMAY subsidy

The eligibility for PMAY subsidy is divided based on the income group.

EWS/LIG scheme

  • Applicants under this group need to have an income range of Rs.3 lakh and Rs.6 lakh.
  • They are liable to receive a subsidy of upto 6.5% as financial assistance. The available loan amount is upto Rs.6 lakh for this group.
  • They shouldn’t be a beneficiary of government housing schemes or related subsidies.
  • A household or beneficiary mustn’t be an owner of a pucca house
  • The age limit to apply for Pradhan Mantri Awas Yojana subsidy is between 18 to 70 years
  • A beneficiary under this group can only make a loan application for home construction or renovation.

MIG-I and II Scheme

  • Individuals belonging to the MIG-I group will receive a subsidy of 4%, and MIG-II will receive a 3% subsidy under the PMAY scheme.
  • The carpet area of the property being purchased or constructed under MIG I shouldn’t exceed 90 sqmtrs and 110 sqmtrs under MIG II.
  • Applicants belonging to the scheduled tribe or scheduled caste have to submit caste certificates.

Fulfiling the mentioned criteria will make a first time home buyer eligible for PMAY and its benefits.

However, they need to make an application first on the official PMAY website.

How to make an application for the PMAY scheme?

The steps for the same are as follows-

Step 1: Visit the official PM Awas Yojana website and log in

Step 2: An individual needs to click on citizen assessment tab and select the benefits under three components

Step 3: He/she will need to enter the Aadhaar number and click on the submit option

Step 4: If the provided data is correct, a user is redirected to a page that needs to be filled with personal and professional data. This includes name, caste, age, address, contact number, etc.

Step 5: Enter captcha code and click on save to complete this application.

Individuals should also keep a tab over the PMAY list published yearly by the Government. It contains the name of beneficiaries.

However, individuals can look for alternatives, such as a home loan, if they fail to clear strict eligibility criteria.

Borrowers can avail a considerable amount against simple eligibility for the said credit instrument. Some of the additional benefits offered by home loan are discussed below.

What are the benefits of a housing loan?

  1. Simple eligibility

Most lending institutions set simple eligibility against a home loan. Clearing these parameters to ascertain that the applicant is reliable in terms of repayment is crucial.

The basic home loan eligibility criteria for salaried individuals include-

  • The age limit of an applicant must be between 23 to 62 years
  • A salaried applicant must have a minimum of three years of experience
  • An individual should be an Indian resident
  • He/she should have a stable income flow.

The basic requirement for self-employed applicants include-

  • A potential borrower must have Indian citizenship
  • Individuals should fall in age bracket of 25 to 70 years
  • A self-employed applicant must have a minimum of five years of business continuity.

In this regard, maintaining a 750+ CIBIL score and good repayment history will increase the loan eligibility.

  1. Minimum documents

Applicants need to submit minimum documents against a home loan. This includes-

  • KYC papers
  • Identity and address proof
  • Bank account statements of six months and salary slips
  • Proof of business running for five years
  • Photograph of applicant(s)

Apart from mentioned features, many lenders also offer personalised offers and services to credible borrowers.

For instance, leading HFCs extend pre-approved offers that make the loan application hassle-free. These offers are applicable on financial products, such as a home loan, loan against property, etc. You can check your pre-approved offer by entering your name and contact number.

These are some of the vital  related to PMAY subsidy and its eligibility. It is recommended to keep a tab over updates on official website for notifications.