What is the eligibility for Pradhan Mantri Awas Yojana scheme?

Introduced by the Ministry of Housing and Urban Poverty Alleviation in June 2015, Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme for realizing the objective of Housing For All. The scheme seeks to provide loans on highly subsidized interests to meet the purchase, construction, extension, and improvement of the houses by three categories of people namely Economical Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG).

The main objective of the PMAY scheme is to make housing loan affordable to all. The value of the subsidy depends on the category of income that the customer belongs to and the size of the property that is being financed.

The benefits given for the different income groups are as follows:

EWS/LIG category

LIG (Lower Income Group and EWS (Economically Weaker Section) categories can be understood as those households whose annual income falls between Rs. 3 lakhs and Rs. 12 lakhs. The beneficiaries in this group are eligible to receive a maximum interest subsidy of 6.5%. To avail of this facility, it is mandatory that the building constructed or purchased must not exceed the carpet area of 60 square meters or 645.83 square feet (approx.). The interest subsidy will be given to a maximum loan amount of Rs. 6 lakh.

In the year 2017, this scheme was extended to cover the middle income groups (MIG-1 and MIG-2) as given under.

MIG 1 category

MIG 1 category refers to those households whose incomes is more than Rs. 6 lakhs per annum, but does not exceed Rs. 12 lakh. The beneficiaries falling under the MIG- 1 category are eligible to receive a maximum interest subsidy of 4 % under the condition that the building constructed or purchased under this scheme does not exceed the carpet area of 160 square meters or 1,722.23 square feet (approx.). This maximum amount of loan that can be given under this subsidized interest is Rs. 9 lakh with a tenure of up to 20 years.

MIG 2 category

MIG 2 category refers to the category of households that have an annual income above Rs. 12 lakh but below Rs. 18 lakhs. The beneficiaries under this scheme are eligible for a maximum interest subsidy of 3%. The scheme mandates that the houses purchased or constructed under this scheme must not exceed a carpet area of 200 square meters or 2,152.78 square feet (approx.). The upper limit placed on the loan under this kind of subsidized interest is Rs. 12 lakh with a tenure of up to 20 years.

Pradhan Mantri Awas Yojana Eligibility

It is mandatory that the beneficiary family must not own a pucca house in the name of any of the family members in any part of the country.

When a married couple applies for this loan, either one of the spouse or both the people together (joint ownership) are eligible for a single subsidy.

The beneficiary family must not have received any kind of assistance from the central government under any other housing scheme of any benefits given under the PMAY.