Requirements for Availing PMAY Subsidy?


An initiative of the central government, Pradhan Mantri Awas Yojana or PMAY has a goal of providing affordable housing to the poor citizens living in urban locales. To be eligible for PMAY benefits, you must meet the eligibility. Read on to know more about it.

Launched in 2015, Pradhan Mantri Awas Yojana aims at providing subsidy on home loan interest to the urban poor under the credit-linked subsidy scheme, which is an integral part of the PMAY. Under the scheme, anyone who is a first-time homebuyer and applying for a home loan can get the interest subsidy benefit.

However, to avail benefits of Pradhan Mantri Awas Yojana, you must meet the criteria of the scheme. Below are the requirements you must meet to get the subsidy benefit.

Requirements for EWS and LIG

  • You or any of your family member must not own a pucca home anywhere in India.
  • Home loans obtained and applied from 17 June 2015 are eligible for the scheme.
  • The lender that you approach for the home loan must have an MOU with either Housing and Urban Development Corporation (HUDCO) or National Housing Bank (NHB).
  • If you or any of your family member has availed monetary assistance under any of the government housing schemes, you will not be eligible for the subsidy.
  • The female family member must be the owner or co-owner of the property. However, if the plot is purchased before 17 June 2015 and the loan is required for construction, then female ownership is not required.
  • The property you wish you buy must be located in towns determined by the Centre.

Requirements for MIG I and MIG II

  • If you apply for a home loan under the MIG (I) category, as per the PMAY mandate, your annual household income should be between Rs. 6 lakhs and 12 lakhs. But for a MIG (II) household, the annual income must be between Rs. 12 lakhs and 18 lakhs.
  • You must not have received any assistance under a housing scheme from the government.
  • For MIG I, the carpet area of the house must not be more than 90 square metres. For MIG II, the carpet area of the home must not be more than 110 square metres.

How to Claim the Subsidy?

After you enrol for PMAY, you can approach any lender of your choice that are listed under PMAY for home loan. Before you choose the lender, compare the home loan offers of different lenders in terms of the interest rate, associated charges, disbursal time, and services offered.

Once the lender sanctions your loan application and the amount is disbursed, the lender will then apply for the subsidy on your behalf. The lender, after receiving the amount, will credit the same to your loan account and your EMIs will automatically reduce. This means that when you apply for the loan, initially you must pay the regular EMIs, and after the subsidy claim is approved, you get a compensation for the additional interest you have paid.