All you need to know about PMAY Buying Guide

How many times did you come across ‘PMAY’ while reading any real estate article in the newspaper and did you ever think if it will benefit you? Want to know if you can avail the benefits of PMAY? Well we have got it sorted for you! Read more to understand PMAY in- detail.

What is Pradhan Mantri Awas Yojana (PMAY)?

Pradhan Mantri Awas Yojana is a programme by Government of India to ensure ‘Housing for all by 2022’. Under PMAY, there is a Credit Linked Subsidy Scheme (CLSS) on home loans for properties in urban market belonging to Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group 1 & 2 (MIG). It can be availed for new or resale purchase of home, construction, or for extension or improvement of rooms, kitchen, toilet etc.

The housing and Urban Affairs Ministry approved a 33 percent increase in carpet area of houses eligible for interest subsidy under the Pradhan Mantri Awas Yojana- Urban. With this move, the government aims to widen its reach among the beneficiaries, especially in the Tier II and III cities and the peripheral areas, where the housing cost is much lower. Experts believe that the enhancement of the carpet area for the MIG customers under the PMAY is expected to bring cheer to the buyers in the affordable housing sector. Thus providing the needed impetus to the supply of dynamics.

What are the Objectives of the Pradhan Mantri Awas Yojana:

• To drive public as well as private sector together in a bid to improve the nation’s urban occupants.
• To provide financial support to people who can’t carry the entire cost of building a residential property.
• To offer houses to the Economically Weaker Sections (EWS) of the society.
• To ensure that the poorer sections of urban India can live under a roof of their own.

The eligibility is dependent on the income group you fall in.

There is a basic requirement an applicant has to meet. For instance, if the beneficiary is a family, it must comprise of a husband, wife, and unmarried children. Also, no person from the family should own a house in their name.

Economically Weaker Section (EWS) category - People who earn an annual household income less than Rs.3 lakh comes under the Economically Weaker Section (EWS) category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to perceive their claims.

Light Income Group (LIG) category - An annual household income ranging between Rs.3 lakh to 6 lakh falls under this group. Again, to be eligible for consideration, they need to provide sufficient proof of their economic standing.

Medium Income Group (MIG1) - Those who earn an annual household income below Rs.12 lakh falls under the MIG1 category. They can avail loans of up to Rs.9 lakh for the construction of a residence.

Medium Income Group (MIG2) - Individuals earning an annual household income between Rs.12 to Rs.18 lakh will fall under MIG2 of the PMAY scheme. These people can avail loans of up to Rs.12 lakh.

People hailing from minority groups like SC/ST/OBC fall under minorities. To be considered under the PMAY scheme, these people need to provide relevant caste and income certificates. Women belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme.  

What are the benefits and subsidy offered?

The subsidy offered depends upon the loan amount and the income group you fall in.

Applicants with income up to Rs. 6 Lakhs, can avail a maximum subsidy of Rs.2.67 Lakhs.

Applicants with income up to Rs.12 Lakhs, can avail a maximum subsidy of Rs.2.35 Lakhs.

Applicants with income up to Rs.18 Lakhs, can avail a maximum subsidy of Rs.2.30 Lakhs.

What are the documents required for this scheme?

• KYC Documents & Photograph.
• Aadhar Card is mandatory.
• Salary slip or Certificate & updated bank statement for salaried applicants.
• Income Tax Returns of last two years.
• Bank statement for self-employed applicants.
• Proof of income.
• Customer declaration undertaking.
• Additional Application form.

How to avail this scheme?

Visit any bank or housing finance company and enquire about the Pradhan Mantri Awas Yojana scheme. They will check the fulfilment of the eligibility criteria for the scheme. If the required criteria are satisfied, they will submit the borrowers claim to Central Nodal Agency (CNA). The CNA processes the claim and releases the subsidy amount through the bank or housing finance company.  Thereafter, the bank or housing finance company will adjust the same by crediting to the borrower’s Loan account resulting in reduced loan outstanding and the effective EMI.

Projects to look out for under PMAY Scheme:

Jainam Garden,Khopoli 

Namo Vrindavan, Karjat 

Chintamani Habitat, Shahpur

Balaji Complex, Khopoli

Aryan Paradise, Titwala