Have You Booked Your Home Under PMAY Yojana Yet?

Have You Booked Your Home Under PMAY Yojana Yet?

If you are one of those who is dreaming of buying a home since very long, then this is the best time to make your dream come true. You can book a home as per your needs under Pradhan Mantri Awas Yojana (PMAY). It is a Credit Linked Subsidy Scheme (CLSS) launched by NDA government led by Hon’ble Prime Minister Shri Narendra Modi in June 2015. It aims at providing affordable housing facility to all citizens under mid-size income group by 2022. The applicants will get a subsidy under the said scheme which can be used to partial payment towards your Home Loan amount.

If you’re unaware of PMAY, here are some useful details about PMAY that every first time home-buyer should know:


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Classification of PMAY Subsidy

The eligible individuals can avail PMAY subsidy under the following categories. The categories can be divided according to the property type, annual income, and loan amount. The subsidy rate and amount is fixed as per the government guidelines and cannot be changed.

CLSS Annual Household Income (INR) Maximum Carpet Area Max. Loan Amount Eligible for Subsidy (INR) Interest Subsidy Maximum Subsidy Granted Loan Tenure (Years)
EWS 0-3 Lakhs 30 sqmt. 6 Lakhs 6.5% 2.67 Lakhs 20
LIG 3-6 Lakhs 60 sqmt. 6 Lakhs 6.5% 2.67 Lakhs 20
MIG 6-12 Lakhs 90 sqmt. 9 Lakhs 4% 2.35 Lakhs 20
MIG II 12-18 Lakhs 110 sqmt. 12 Lakhs 3% 2.30 Lakhs 20

* Interest subsidy benefit is calculated on an NPV (Net Present Value) discount rate of 9%

Who is eligible to avail the benefits of PMAY subsidy?

Anyone who qualifies criteria or meets the terms and conditions mentioned below can avail the benefits of PMAY subsidy:

  • Any first time home buyer who is above 18 years old can avail this subsidy if there is no pre-existing property in their name.
  • If the applicant is unmarried, there should be no existing property (pucca house) in the name of his/her parent(s) in any part of India.
  • In case of a married applicant, there should be no existing property (pucca house) in the name of his/her spouse or kid(s) name in any part of India.
  • If one is applying for EWS or LIG subsidy, a woman co-applicant (mother/wife/daughter/sister) is mandatory for purchase of property and for availing a home loan. For the other two categories, there is no such need.
  • A woman co-applicant is not mandatory for EWS or LIG subsidy if the loan is being availed for construction, extension or improvement of the home.
  • The beneficiary individual or his/her family should not have availed central assistance under any housing scheme of Indian government or any scheme in PMAY.
  • The person who is falling in MIG II category (as per salary), can apply for the other three categories, but the subsidy will be 3% only.
  • The purpose of taking the loan should be – purchase/construction/improvement of the home. If the loan is being taken for renovation or extension of house, it can be only used to convert a kuccha house into a pucca house.
  • For availing subsidy for MIG I and MIG II, loan should be approved on or after 1st January, 2017.

Even if you pass these eligibility criteria, the decision of providing subsidy to you depends on the government. The chances of getting approval for the subsidy are higher if the information and documents provided by you are complete and genuine.

Required Mandatory Documents  

  • 110 for affidavit/stamp paper
  • Aadhaar card
  • PAN card
  • Loan sanction letter
  • Builder and buyer agreement/ or ATS copy

How much time does it take to get PMAY subsidy?

It may take anywhere between 3-4 months to receive subsidy amount, after complete verification by the government.

The PMAY subsidy can reduce the burden from home buyers who are spending their hard-earned savings and salary on buying a home and repaying the home loan amount. Once the buyers get the subsidy amount credited to their loan account, they can make partial loan repayment, thus reducing the outstanding loan amount further.

With government extending its support to medium income group through PMAY subsidy and making the registration process easier, and Home loan Interest Rates going as low as 8.6%, this is the best time to buy a house for yourself and your family.

Also Read: 10 Important FAQs About Pradhan Mantri Awas Yojana Answered

Pradhan Mantri Awas Yojana Latest Updates

15% Houses Have Been Completed Under Pradhan Mantri Awas Yojana in 3 Years

As per the data released by Housing and Urban Affairs Ministry, since its launch, over 15% of the houses (out of total 54.95 Lakh) have been completed in 3 years in urban areas under Pradhan Mantri Awas Yojana scheme. The government aims at completing the construction of 1 Crore houses in urban areas within a span of 7 years (by 2022) and claims that the work is on track.

Centre Approves Approx. 1.12 Lakh More Houses Under Pradhan Mantri Awas Yojana

The Centre, under Pradhan Mantri Awas Yojana, has approved nearly 1.12 Lakh more houses for urban poor citizens in eight states. Andhra Pradesh gets the largest share with over 37,000 housing units. In July 2018, the central sanctioning and monitoring committee (CSMC) of PMAY(U) also approved construction of 2.67 Lakh houses for the poor citizens in 10 states.

NaMo Addresses the Beneficiaries of Pradhan Mantri Awas Yojana in Valsad, Hopes the Dream of Every Family to Own a Home Will be a Reality by 2022

Prime Minister Narendra Modi on Thursday addressed the beneficiaries of PMAY in Valsad, Gujarat, talking about his constant efforts to enhance the lives of poor people in India. He said that he dreams that every household will have their own home by 2022, when India will be celebrating 75 years of independence.

 Andhra Pradesh Approves the Allotment of 15,091 houses under PMAY

Andhra Pradesh cabinet under PMAY (Pradhan Mantri Awas Yojana) – NTR (Urban) Nagar scheme has approved the disbursal of 15,091 houses in 2018-19. It was also decided in the cabinet meeting that if the houses allotted to people from 1993-94 to 2006-07 in rural areas of the state are in dilapidated condition, new houses will be allotted to them under NTR rural housing scheme with some conditions.

Lock-in Period for Sale of Houses Under PMAY (U) to be Reconsidered to Curb Unfair Practices

The Ministry of HUA (Housing and Urban Affairs) is considering the introduction of the provision of a 5 years’ lock-in period for sale of houses under PMAY (U) scheme as many people were taking undue advantage of the scheme. Some people avail of this scheme, and when they get possession they sell homes at higher rates.

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