10 Important FAQs About Pradhan Mantri Awas Yojana Answered
The Pradhan Mantri Awas Yojana (PMAY) was first envisioned by Prime Minister Narendra Modi in 2014. However, there are many questions surrounding this scheme and its objectives.
Striving to make things easier for you, here are 10 most common FAQs about this scheme and everything you need to know about it.
1. What exactly is the Pradhan Mantri Awas Yojana?
This scheme focuses on making housing for all, especially families from economically weaker sections of our population, a reality. Individuals, regardless of their economic background, looking to own a house of their own can benefit widely from this plan.
2. What are the programs this scheme addresses?
This scheme strives to enable housing for all by implementing programs such as the following:
- Slum rehabilitation
- Joining hands with private and public sectors to bring provisions for affordable housing development.
- Conditions for a credit-linked subsidy, particularly for the weaker section.
- Enhancing and constructing beneficiary led houses.
3. Who is eligible for this scheme?
The PM Awas Yojana scheme has a few eligibility criteria that you need to fulfill. You or any family member should not own a brick and mortar house in your name as well as in the name of any family member. Any person already possessing a solid structured (‘pucca’) house cannot avail this benefit. Your income needs to be up to 6,00,000 per year to avail EWS or LIG. Your income needs to be from 6,00,000 to 12,00,000 per year to avail MIG1, 12,00,000 to 18,00,000 per year to avail MIG2.
4. What does the confusing jargon used in the scheme mean?
Finding jargon such as CLSS, MIG, LIG, and EWS should not confuse you. The definitions behind these acronyms are the following –
CLSS stands for Credit Linked Subsidy Scheme. This is where the government lends a helping hand by chipping in the required. This ensures your Home Loan burden decreases.
MIG refers to Middle Income Group; EWS means Economically Weaker Sections; while LIG stands for Low Income Group.
5. Do I have to pay any kind of processing fee to avail this scheme?
No. You do not have to pay any processing or other fees to benefit from the Pradhan Mantri Awas Yojana.
6. What are the loans under PMAY?
Availing the scheme’s benefits is possible for those wanting to acquire a new house from the builder or developer. Even purchasing a house from the secondary market through a repurchase is possible. Constructing a house too can be put under this scheme. Filling the Pradhan Mantri Awas Yojana Online Application is not difficult and helps make proceedings more convenient for you.
7. What documents are required to benefit from this scheme?
As per guidelines mentioned, submitting the following documents to the branch officer is required:
- A notarized affidavit cum undertaking is a prerequisite
- In addition to this, you need to submit Aadhar Card of every home member
You can easily Apply for Pradhan Mantri Awas Yojana Online if you want to go in for a hassle-free way of availing this scheme.
8. How are balance transfer and the PMAY scheme connected?
Under this scheme, the borrower can transfer the Home Loan taken, but they are not allowed to claim the subsidy again on such a balance a Home Loan Balance Transfer. More importantly, you cannot claim benefits under this scheme by transferring your existing Home Loan after the notified date. This is because the subsidy is available only to the borrower when the borrower constructs or acquires a house. It doesn’t matter if the house is new or second hand.
In simple terms, if you have taken a Home Loan under the PMAY scheme from a bank, you cannot balance transfer it to another bank without losing the benefit of the scheme.
9. Do I have to wait for a long time to obtain a CLSS Home Loan approval?
If you possess all of the necessary documentation and meet the eligibility criteria, getting quick approval from the lender is easy and hassle-free. Ultimately, it does depend on the processes and procedures of the lender.
10. If a house owner owns a plot but does not have a house, is she or he eligible for the subsidy?
The scheme states that the beneficiary family should not own a ‘pucca’ house in any part of India. This holds true for all family members in a particular household. If you meet this condition, the family can get central assistance under this mission. If a beneficiary owns a commercial establishment, shop, factory or plot but does not own a house, they can still avail the benefit of this housing scheme.
The financial experts at MyMoneyMantra can help you get the best possible option when it comes to Pradhan Mantri Awas Yojana.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.