The Pradhan Mantri Awas Yojana (PMAY) is an affordable housing scheme launched by the Government of India and is aimed at promoting homeownership in the country. The PMAY scheme provides affordable housing for the urban population through interest subsidies on home loans taken for purchasing, constructing, or renovating a house. The PMAY eligibility criteria differ in the case of various income classes. Let us explore the criteria for PMAY eligibility in detail.
Before we get into the PMAY eligibility criteria, it’s important to understand the section of the population for whom it is available. The beneficiaries of PMAY are divided into the following categories:
Economically Weaker Section (EWS): Families with an annual household income under Rs.3 lakh.
Light Income Group (LIG): Families with an annual household income between Rs.3 lakh and Rs.6 lakh.
Medium Income Group (MIG 1): Families with an annual household income under Rs.12 lakh.
Medium Income Group (MIG 2): Families with an annual household income between Rs.12 lakh and Rs.18 lakh.
Minority Groups: Individuals/families from minority groups like SC/ST/OBC.
Women: Women from EWS/LIG categories.
When we say family, it comprises husband, wife and unmarried children. Note that beneficiaries from the above income-based sections must produce proof of income to be considered under the PMAY scheme. In the case of the minority groups, relevant caste and income certificates must be provided to avail the PMAY subsidy.
PMAY Eligibility Criteria
The basic eligibility criteria for PMAY is as follows:
- The beneficiary or any of their family members must not own a pucca house (all-weather dwelling) in any part of India.
- The beneficiary or any family member must not have availed the benefits of any other housing scheme launched by the Government of India/state government.
- The beneficiary family must not have availed any subsidy under the PMAY-CLSS scheme from any Primary Lending Institution (PLI).
- The construction or extension of the property must be completed within 3 years starting from the date of receiving the 1st instalment of the loan amount.
- Properties in all statutory towns and their adjacent planning areas as per Census 2011 are eligible for coverage under the PMAY scheme.
- In the case of a married beneficiary, one of the spouses or both of them in joint ownership are eligible for one subsidy.
Additional criteria for LIG/EWS category: There is another eligibility criterion only for beneficiaries belonging to the LIG or EWS categories. For a home built or purchased with the help of a home loan under PMAY, membership of an adult female member of the family is mandatory in the homeownership. The ownership can be solely in the name of a female member of the family or in joint ownership with the spouse. Nonetheless, if the PMAY subsidy is used for the construction of a house on an existing plot, or extension or renovation of an existing kuccha or semi-pucca house, the above-mentioned condition is not required.
In the case of families wherein there is no adult female member, the ownership of the home can be in the name of a male member only.
Details of Pradhan Mantri Awas Yojana Eligibility for Various Sections
Under the PMAY scheme, the government extends the Credit Link Subsidy Scheme (CLSS), which is a subsidy on the interest payments of a home loan. The amount of subsidy allowed depends on the income category of the applicant, and the carpet area of the property for which a home loan is availed. The benefits under each category are as follows:
The maximum interest subsidy allowed to beneficiaries from the EWS and LIG categories is fixed at 6.5%. The carpet area of the home that is acquired or constructed must not be higher than 60 square metres, or 645.83 square feet. Moreover, the interest subsidy is capped at a maximum loan amount of Rs.6 lakh with a maximum tenure of 20 years.
The maximum interest subsidy allowed to beneficiaries from the MIG- 1 category is 4%. The carpet area of the home that is acquired or constructed must not exceed 160 square metres or 1,722 square feet. The interest subsidy is allowed for a maximum loan amount of Rs.9 lakh with a maximum tenure of 20 years.
The maximum interest subsidy allowed to beneficiaries from the MIG-2 category is set at 3%. The carpet area of the home that’s acquired or constructed must not be higher than 200 square metres or 2,153 square feet. The interest subsidy is allowed for a maximum loan amount of Rs.12 lakh with a maximum tenure of 20 years.
In conclusion, the PMAY scheme is a highly beneficial initiative for individuals who want to purchase or construct an affordable home. The PMAY eligibility criteria differ in the case of each income segment, namely EWS/LIG, MIG 1, and MIG 2.