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  • Here’s How Urban Residents can get a House under the Pradhan Mantri Awas Yojana-Urban

    In order to ensure that the benefits of the affordable housing scheme reach the poorer and weaker walks of the urban population, the Indian government has launched the Pradhan Mantri Awas Yojana-Urban (PMAY-Urban). Under this scheme, four income groups are covered. They are:

    • Medium Income Group-I (MIG-I)
    • Medium Income Group-II (MIG-II)
    • Economically Weaker Section (EWS)
    • Lower Income Group (LIG)

    The PMAY-Urban covers four major verticals in the urban spaces:

    • In-Situ Slum Redevelopment (ISSR)
    • Affordable Housing in Partnership (AHP)
    • Beneficiary-led Construction (BLC)
    • Credit Linked Subsidy Scheme (CLSS)

    If you want to be a part of the Pradhan Mantri Awas Yojana – Urban and enjoy its benefits, here's how you can do so:

    Evaluate Your Eligibility for the PMAY-Urban

    Here are the eligibility criteria that you need to meet in order to avail the benefits of the PMAY-Urban:

    • If you are applying as a part of the Medium income group-II (MIG-II), you should have an annual income ranging between Rs.12 lakh and Rs.18 lakh.
    • In order to qualify and apply as a Medium income group-I (MIG-I) beneficiary, you must provide documents which show that your annual income is between Rs.6 lakh and Rs.12 lakh.
    • If in your application for the PMAY-Urban, you have mentioned that you belong to the Lower Income Group (LIG), you must show that you earn between Rs.3 lakh and Rs.6 lakh in a year.
    • If you are applying as a part of the Economically Weaker Section (EWS), you must have an annual income of less than Rs.3 lakh. Note that if you come under the Economically Weaker Section (EWS) or Lower Income Group (LIG), you will need to submit proof of your income as well.
    • If any member of your family has already subscribed for any government housing scheme, you will not be able to avail the benefits of the PMAY-Urban scheme.

    Does the House You Plan to buy Qualify Under PMAY-Urban?

    To successfully avail the benefits of the PMAY-Urban scheme, the house you want to purchase has to be listed under the affordable housing projects by the Indian Government. The guidelines of the Housing for All (PMAY-Urban) Scheme says that affordable housing projects include projects where 35% or more of the houses are constructed for the Economically Weaker Sections (EWS), and have a minimum of 250 units.

    Other than this, you will have to meet the area prerequisites based on your income eligibility slab. To avail this scheme, the carpet area requirement if you are a part of the Medium income group-I (MIG-I) is up to 120 sq.m. and for Medium income group-II (MIG-II) is up to 150 sq.m. When it comes to Economically Weaker Section (EWS) and Lower Income Group (LIG), the carpet areas have to be 30 sq.m. and 60 sq.m. respectively.

    Claim Subsidy by Taking a Home Loan

    You can always claim interest subsidy under the Credit Linked Subsidy Scheme (CLSS) when you take a home loan for funding the purchase or construction of your future home.

    • If you are a Medium income group-II (MIG-II) applicant, you will be able to avail a credit-linked subsidy of 4% on your home loan of up to Rs.9 lakh.
    • If you are a part of the Medium income group-II (MIG-II), you will get a credit-linked subsidy of 3% on a loan of up to Rs.12 lakh.
    • If your loan amount is up to Rs.6 lakh, you can also get a credit-linked subsidy of 6.5%.

    Note that if your home loan amount exceeds Rs.6 lakh, you will get the remaining loan amount at a non-subsidised rate.

    Make Sure to Choose a Lender Listed with PMAY-Urban

    Although you can always get a loan from a Primary Lending Institution (PLI) like a bank or a Non-Banking Financial Company (NBFC), you have to make sure that your lender is PMAY-Urban approved.

    If you choose a lender listed under the scheme, you can easily enjoy the benefits of PMAY-Urban. These include online account management, flexible repayment terms, and a top-up loan.

    Now, you can easily avail the benefits of the Pradhan Mantri Awas Yojana-Urban (PMAY-Urban) scheme and buy your future home.

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