The Pradhan Mantri Awas Yojana or PMAY was introduced in the year 2015 by PM Narendra Modi to make affordable housing accessible for the economically backward section of the society. The scheme aims to build 20 million houses for India’s urban poor by the end of the year 2022.
Under the Pradhan Mantri Awas Yojana 2019, individuals complying with the eligibility criteria to avail it can access CLSS or Credit Linked Subsidy Scheme that enables them to avail home loan at subsidized interest rates.
Below is a list of the most commonly asked questions about Pradhan Mantri Awas Yojana and their answers.
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What is the aim of PMAY?
PMAY aims to provide affordable housing for all by implementing the following policies-
- Rehabilitation of people living in slums.
- Credit-linked subsidy for the economically weaker section of the society.
- Bringing various provisions for the development of affordable housing by collaborating with the public and private sectors.
- Construction of beneficiary led houses.
Who is eligible to avail this scheme?
The following are the eligibility criteria to apply for PMAY:
You cannot avail the benefits of the scheme if you or any of your family members already own a brick and mortar house in your name or any of your family member’s names anywhere in India. Apart from this-
- Your annual income should be below Rs. 3 Lakh if you belong to the Economically Weaker Section or EWS and it should be between Rs. 4 Lakh to Rs. 6 Lakh if you belong to the Lower Income Group or LIG.
- Your income should be between Rs. 6 Lakh to Rs. 12 Lakh per year if you belong to the Mid-Income Group 1 or MIG1 and it should be between Rs. 12 Lakh to Rs. 18 Lakh per year if you belong to Mid-Income Group 2 or MIG 2 to avail the benefits of this scheme.
- The maximum age to avail the loan is 70 years.
Thus there are quite a few PMAY eligibility criteria you need to comply with if you want to avail the benefits. If you do comply with the above criteria, you can apply for a home loan from partnered financial institutions like Bajaj Finserv who offers home loans with the benefits of the Pradhan Mantri Awas Yojna.
Do you have to pay any processing fee to avail PMAY?
No, you do not have to pay a processing or any other fee to avail the benefits of Pradhan Mantri Awas Yojana.
What are the main benefits of the scheme?
The following are the key benefits of PMAY-
- The individuals availing PMAY will be granted a subsidy on home loan interest rate of up to 6.5% which can be availed by the beneficiaries in the first 20 years of the repayment tenor.
- The houses constructed under this scheme will only use eco-friendly and sustainable materials in their construction.
- Elderly and differently-abled individuals will be given special preference while ground floors are allotted.
When can you avail home loans under the scheme?
You can use the Pradhan Mantri Awas Yojana loan for the following purposes:
- If you want to avail a home loan to purchase a new house from a developer or builder.
- You can also purchase a house from the secondary market through repurchase.
- You can use the loan to facilitate the construction of your house.
What are the documents required to avail the scheme?
You can apply for the Pradhan Mantri Awas Yojana scheme online. However, it is compulsory to produce the following documents when you apply for the loan-
- A notarized affidavit cum undertaking.
- Adhaar cards of every member of your house.
If you produce the required documents and meet the necessary eligibility criteria, the process of availing the benefits become easy and hassle-free. However, the time taken to get your loan approved is at the discretion of your lender.
