Shaheen Shaikh
by on September 23, 2020

The first public housing schemes in India were introduced just after independence, to accommodate families affected by the partition. After that, several other housing schemes were launched, such as the Indira Awas Yojana and the Village Housing Programme. But the most ambitious housing scheme launched till date has been the Pradhan Mantri Awas Yojana (PMAY). This is a government initiative that aims at providing affordable housing to the urban poor. By March 31, 2022, the scheme aims at providing 20 million affordable houses. If you are unaware of this scheme, here are 5 facts you must know.

1. Eligibility

The aim of this scheme is to provide affordable housing to all. Therefore, it is understandable that those who already own a house cannot apply for the PMAY scheme. The beneficiary of this scheme should not already own a pucca house or have availed benefits from a central or state government housing scheme. The beneficiary can be a husband, wife and their unmarried children. If you are an adult, and even if your parents own a house, you can become a beneficiary. To avoid duplication, the beneficiaries would have to provide their Aadhar Card numbers. In case of the EWS and LIG categories, there should be at least one female co-applicant.

2. Criteria for Categories

Under the PMAY scheme, you can apply under 4 categories. These are the economically weaker section (EWS), low income group (LIG), middle income group (MIG) I and MIG II. EWS households are those that have an annual income of less than ₹3 lakhs. Households with annual income between ₹3,00,001 and ₹6 lakhs, come under the LIG category. For MIG I households, the annual income should be between ₹6,00,001 and ₹12 lakhs, and for MIG II, above ₹12 lakhs.

3. Allowed Carpet Area

For availing the benefits of PMAY, the carpet area of houses under different categories is fixed. For EWS, the maximum carpet area allowed is 30 sq. mts. For LIG houses, the maximum carpet area allowed is 60 sq. mts. In case of MIG I and MIG II houses, the maximum carpet area allowed is 90 sq. mts. and 120 sq. mts., respectively. The thickness of the inner walls is not included in the carpet area.

4. Preferred Allotment

In the Pradhan Mantri Awas Yojana, the allotment is preferably given to applications of widows, single working women, people from the SC, ST and OBC communities, transgenders and the differently abled.

5. Interest Subsidy

Under the Credit Linked Subsidy Scheme, the beneficiaries would get a subsidy on the home loan interest rates. These subsidies are:

  • For EWS and LIG categories, an interest subsidy of 6.50% for an amount of up to ₹6 lakhs is provided.
  • For MIG I households, the interest rate subsidy is 4.00%, and the maximum eligible loan amount is ₹9 lakhs.
  • In case of MIG II households, the interest rate subsidy is 3.00% and maximum loan amount is ₹12 lakhs.

If you want to apply for the PMAY, the process is extremely simple. All you need to do is download and fill a self-declaration form from the PMAY website. To submit the form, go to the nearest bank branch affiliated with the scheme, such as ICICI HFC, and submit your PMAY application. When submitting the form, carry documents such as Aadhar Card with you.

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