The government-funded housing scheme officially called as PMAY aims to provide housing for all by the year 2022 when India will be celebrating its platinum jubilee after independence. The Ministry of Housing and Urban Poverty Alleviation regulates this initiative under supervision by the central government.
Till date, more than 1.5 Crore houses have been built under this scheme in India as per the latest budget in 2019. The scheme extends financial assistance and also prioritises the adoption of eco-friendly measures to build pucca hospices, especially for the economically challenged sections of the society.
Who are eligible for the PMAY loan?
Under the Pradhan Mantri Yojana 2019, the eligibility criteria to avail the loans are as follows –
- The loan applicant or any of his/her family member should not own a pucca house in any part of the residing country.
- The applicant should not have availed any such assistance from the state or central government before.
- There has to be a female owner to the property.
- The location of the house to be built should be included in the last 2011 census as and when updated by the Indian government.
Hence, it is recommended to make sure that you fulfil the above mentioned criteria before availing a home loan from a lender.
You can avail a PMAY subsidised loan via any financial institution of your choice provided it is enlisted. Other than the PMAY eligibility criteria, you may need to meet certain additional criteria as well from leading lenders.
What are the steps to avail loan under PMAY?
Availing a home loan is a stepwise process and once you are eligible for the loan, the lender will disburse the amount easily. The loan is extended to preferably 4 income categories –
- Economically Weaker sections (EWS.)
- Lower Income Group (LIG.)
- Middle-Income Group (MIG) – I and,
- Middle-Income Group (MIG) – II.
These four groups are divided based on their annual income by the central government. Accordingly, the interest rates are also fixed and so are the loan amounts for each category under PMAY.
The steps to easily get a home loan in India include the following –
1.Check your eligibility category
First you need to check the income category under which you will be eligible for the specific amount. For instance, an individual under EWS will be able to avail a loan of up to Rs. 3 Lakh, a LIG individual can avail a loan between Rs.3 lakh and Rs. 6 Lakh, MIG (I) can avail between Rs. 6 Lakh and Rs. 12 Lakh while MIG (II) individuals can avail loans between Rs. 12 lakh and Rs. 18 Lakh.
2.Fill the loan application
After complying with the PMAY eligibility, next you need to approach any financial institution and fill out the application form by furnishing all the relevant details of income, property and ownership.
3. Fill the CLSS application
With the application form for CLSS or Credit Linked Subsidy Scheme, you can avail subsidy on home loan interest rate as applicable for your income category. The form can be accessed online and a specified amount based on the availed loan is subsidised by the lender automatically via this form.
4. Submit relevant documents
Along with the above-mentioned application forms, you need to furnish details like KYC, identity proof, address proof and relevant property documents to your lender.
Alongside, you should also know how to get better home loan interest rates by comparing the rates offered by various lenders.
PMAY is a public-centric scheme launched by the Government of India. However, it is important for individuals to have prior understanding of the same to reap the benefits of this scheme appropriately.
