With PMAY ( Pradhan Mantri Awas Yojana), the government is trying to avail affordable housing facilities to all urban middle class and below middle section of the society within 2022. This scheme was initiated by the government in 2015, and the interest offered by the scheme is almost 6.50% which is available for a time frame of 20 years.

The PMAY scheme aiming to provide a Credit-based Subsidy by dividing the financial weak classes into four categories –

  • Economically Weaker Sections),
  • Light Income Group,
  • Medium Income Group-1 (MIG1)
  • Medium Income Group-2 (MIG 2)

The last date of avail the PMAY CLSS scheme for people who fall under MIG-1 and MIG -2 has been extended up to 31st March 2021, while if you belong to LIG or EWS, then the last date will be 31st March 2022.

The Features Of PMAY Scheme You Should Know About

  • The interest rate provided on the home loan under these schemes can range between 6.5% and the maximum payback time frame you can get is 20 years.
  • If you are senior citizens or are specially-abled, then under these schemes you can avail accommodation on the ground floor.
  • The scheme is designed to cover the entire urban areas of our country that also consist of 4041 statutory towns. Though the priority of this scheme is 500 Class 1 cities of the country.
  • The credit-based subsidy is available in all parts of India, and the scheme is implemented even in statutory cities at an initial level.

Types Of PMAY Scheme

The scheme is further divided into two subsections depending upon the area of focus –

Pradhan Mantri Awas Yojana Gramin –

The scheme of Pradhan Mantri Awas Yojana Gramin was previously named Awas Yojana till 2016. The prime focus of the scheme is to provide affordable and approachable housing facilities to all the acceptable beneficiaries living in rural regions. However, it doesn’t include rural areas of Delhi and Chandigarh.

The scheme is implemented by the joint efforts of the Government of India and the State government as they share development costs in a ratio of 60:40 in the plain region. In comparison, the North-eastern and hill region has a development cost-sharing ratio of 90:10.

Pradhan Mantri Awas Yojana For Urban

As you might have guessed from its name, the PMAY-U scheme is specially made to develop the lifestyle of the urban areas in India. There are approximately 4,331 towns currently which are registered for this Scheme. Though the scheme operates into three different phases –

  • Phase 1- In this phase, the government aims in covering almost 100 cities located in various states under this scheme within March 2017.
  • Phase 2 -In this phase, the government aims to cover 200 more cities belong to various states within March 2019.
  • Phase 3 – At this phase, the government will cover the remaining cities that are not included in Phase 1 or Phase 2 by March 2022.

What Are The Eligibility Requirements You Must Fulfill To Avail PMAY?

The subsidy avail on Interest of home loans under this scheme is only available for 3 income groups – EWS, LIG, MIG. Thus the facilities of the scheme are segmented depending on the financial situations of the households-

Applicants Under EWS

If you belong to EWS, then the annual income of your household should not exceed ₹3 Lakhs. In such situations, the subsidy is calculated on a home loan only if the loan amount is less than or equal to ₹6 lakhs. The rate of interest available on such cases can be up to 6.05%, and the maximum carpet area for the house could be up to 30sq m.

Applicants Under LIG or Lower Income Group

Suppose your annual household income is less than ₹3 lakhs while the subsidy calculation on a home loan cannot exceed ₹ 6 lakhs. Thus the interest rate charged on the home loan if you belong to this section can range up to 6.05%, while the maximum carpet area for the house is available up to 60 square meters.

Applicants Under MIG-1

The applicant belonging to these categories will have an annual income within the range of ₹6lakhs to ₹12 lakhs. Thus the maximum subsidy calculated on the home loan can be ₹ 9 lakhs, and the interest rate available on such a loan is 4%. And the maximum carpet area you can get as an applicant under these schemes is 120 square meters. Get reliable debt consolidation loans in Singapore.

Applicants Under MIG-2

The applicant with a yearly household income within a range of ₹12lakhs to ₹18 lakhs can get a maximum subsidy of up to ₹12lakhs. Thus the rate of interest available is 3%, and the carpet area you can get as an applicant is 150 square meters.

Thus you must check that you belong to the above categories to avail of the Benefits under PMAY schemes.