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  • Pradhan Mantri Awas Yojana (PMAY) Eligibility

    The Ministry of Housing and Urban Poverty Alleviation has set a route map and has also made clear the eligibility criteria a prospective applicant need to meet. Also has enlisted the help of some leading banks in the country to provide loans for construction under PMAY. The banks offer loans at a comparatively lower rate as government pays the rest on behalf of the applicant. This model of subsidized loans help more economically weaker people to build a house. Here’s what it looks like:

    • The Applicant’s Family must not own a house in any part of the country.
    • In the case of a Married couple, either a Single or a Joint ownership deal is allowed, and both options will receive just one subsidy.
    • The Applicant’s Family must not have availed the benefit of any housing-related schemes set up by the Government of India.

    Pradhan Mantri Awas Yojana Eligibility Criteria

    Section  Annual Family Income Maximum carpet area
    EWS Rs.3 lakh 60 square meters (645.83 square feet)
    LIG Rs.6 lakh 60 square meters (645.83 square feet)
    MIG1 Rs.6 lakh to Rs.12 lakh 160 square meters (1722.33 square feet)
    MIG2 Rs.12 lakh to Rs.18 lakh 200 square meters (2152.78 square feet)

    In order to avail a house or financial reinforcement from the government, every applicant needs to meet the eligibility criteria set by the PMAY committee. Prospective applicants have been branched into six distinct groups

    • Economically Weaker Section (EWS):People who earn an annual household income less than Rs.3 lakh come under the EWS category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to ascertain their claims.
    • Light Income Group (LIG): People that fall under LIG category usually have an annual household income ranging between Rs.3 lakh to 6 lakh. 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 fall under the MIG1 category. These people 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.
    • Minorities: People hailing from minority groups like SC/ST/OBC will fall under minorities. To be considered under the PMAY scheme, these people need to meet to provide relevant caste and income certificates.
    • Women: Women belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme.

    Besides this, 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.

    Pradhan Mantri Awas Yojana Loan Eligibility for MIG

    Particulars MIG 1 MIG 2
    House Hold Income Rs.12 lakh p.a. Rs.18 lakh p.a.
    Maximum Loan Tenure 20 years p.a. 20 years p.a.
    Interest subsidy 4% p.a. 3% p.a.
    Eligible amount of loan for interest subsidy under CLSS Rs.9 lakh Rs.12 lakh
    Maximum interest subsidy Rs.2.35 lakh Rs.2.3 lakh
    Rate of discount for NPV (Net Present Value) 9% 9%
    Dwelling unit max carpet area 90 sq.mt 110 sq.mt
    Monthly EMI (8.65%) with interest subsidy Rs.5,834 Rs.8,059
    Monthly EMI (8.65%) without interest subsidy Rs.7,894 Rs.10,528

    Pradhan Mantri Awas Yojana Loan Eligibility for LIG/EWS Category

    Amount of loan Rs.3 lakh Rs.6 lakh Rs.10 lakh
    Subsidy Amount Rs.3 lakh Rs.6 lakh Rs.6 lakh
    Balance loan Rs.1,66,360 Rs.3,32,720 Rs.7,32,720
    Interest subsidy Rs.1,33,640 Rs.2,67,280 Rs.2,67,280
    Initial EMI Rs.2,895 Rs.5,790 Rs.9,650
    Reduced EMI after subsidy credit Rs.1,605 Rs.3,211 Rs.7,071
    Savings on a monthly basis Rs.1,290 Rs.2,579 Rs.2,579
    Savings on an annual basis Rs.15,480 Rs.30,948 Rs.30,948

    PMAY, while being a populist scheme, is also a progressive one as it helps millions of urban poor in the country own a house, they can call their own. This scheme, upon completion, will serve as a great model for other developing countries to follow.

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