As per the official report, more than 1.32 crore houses have been built under Pradhan Mantri Awas Yojana. The aim is to cross the milestone of completing 2.95 crore houses by 2022 through this initiative, which started in 2015.
However, to avail of the CLSS subsidy that this scheme entails, individuals need first to meet PMAY eligibility. It will ensure that the scheme will benefit the needy ones. The authorized lending institutions also need to consult with a government’s nodal agency to ensure transparency in disbursal.
Eligibility criteria to get subsidy under PMAY
It is mandatory to meet PMAY eligibility to get a subsidized home loan interest rate. The income of the applicants primarily decides the eligibility. Individuals from the following income categories are eligible for a home under this scheme.
- Economically weaker section and low-income group
Families or individuals with an annual income below Rs.3 lakh and 6 lakh fall under EWG and LIG, respectively. Both these categories can avail a home loan interest subsidy of 6.5%.
It allows them to service a home loan with the lowest interest rate possible. Therefore, they can save up to Rs.2.67 lakh on interest payable.
However, the property’s carpet area should not exceed 30 and 60 square meters for LIG and EWS, respectively. Furthermore, to be eligible for this subsidy, the residential property should be in the name of the family’s female head or should be jointly owned by a male member.
2. Middle-income group I
If an individual or family has a yearly income ranging from Rs.6 lakh and Rs.12 lakh, they meet PMAY eligibility. The maximum interest subsidy they can get is 4%.
The beneficiaries can save up to Rs.2.35 lakh on interest through this CLSS. In this case, the carpet area of the property should be less than 160 square meters.
3. Middle-income group II
Individuals or families who have an annual income between Rs.12 lakh and Rs.18 lakh are eligible for the PMAY subsidy. Moreover, they can save up to Rs.2.3 lakh interest payment.
The property area must be within 200 square meters, as per PMAY eligibility criteria.
Besides, the beneficiaries also need to fulfill certain PMAY eligibility parameters. It includes.
- The applicant should not have a pucca house anywhere in the country, either in his/her name or any family member.
- The PMAY eligibility also requires first-time homebuyers who have not availed of any Central. Government assistance through a housing scheme.
- The family of the beneficiary never availed CLSS subsidy via any Primary Lending Institution (PLI).
- The beneficiary should come from any of the statutory towns mentioned in Census 2011.
- The construction or extension for which the home loan is available should be completed within 3 years from the fund’s disbursal.
PMAY eligibility also includes documentation. Individuals need to submit required documents to get the funds from any lending institution.
Document checklist for PMAY
Submit the following documents to avail of a home loan under this initiative.
For salaried individuals
- Application form.
- Income proof.
- Property papers.
For self-employed individuals
- Address proof of business.
- Income proof
Along with that, you may also have to submit additional documents as per your lender’s requirement to fulfill PMAY eligibility. Keep in mind that KYC can include an Aadhaar card, voter ID, driver’s license, passport, and other such documents.
However, selected HFCs to extend pre-approved offers that simplify and expedite the credit availing process. Such offers are available on various financial products like loans against property, home loans, and several others. You can check your pre-approved offer simply by entering your name and contact number.
Hence, by meeting the eligibility criteria, individuals can finance their home purchases without training their savings. Moreover, they can claim for home loan tax benefits under section 24(b), 80(C), 80(EE), and other applicable sections.