Are you looking to apply for a home loan to construct or buy your dream home?
Then, you may be aware that you will need to pay home loan EMIs comprising of also home loan interest rates. It may take a toll on your monthly outlays if you have don’t have made prior arrangements to handle it.
It is one of the many reasons that many people don’t apply for housing finance as they can’t afford the EMIs and the loan rate of interest.
However, after the introduction of the home loan subsidy scheme by the Central Government, it is going to change.
We are talking about the Pradhan Mantri Awas Yojana loan or the ‘Housing for All’ scheme. As per the group of individuals that you fall into, you can easily avail the home loan subsidy scheme.
The home loan subsidy scheme can help you avail subsidy on a home loan amount making it affordable to pay reduced loan EMIs.
However, you need to meet some PMAY eligibility conditions to be qualified for the plan and get a subsidy on loan to pay lower EMIs. Read on this post and know about the PMAY eligibility criteria quickly.
A Quick Look at PMAY Eligibility Conditions
Anyone willing to enjoy the Pradhan Mantri Awas Yojana home loan subsidy needs to fall into the following categories and fulfil some criteria such as:
- Economically Weaker Section (EWS)
Your annual income needs to be maximum Rs.3 lakh per year to be eligible under this group. You can be entitled to a home loan amount of up to Rs.6 lakh on which you can get a subsidy of 6.5% on interest rates. The repayment period is up to 20 years.
- Low Income Group (LIG)
To be counted under this group, your yearly income should be under Rs.3 lakh to Rs.6 lakh. The home loan amount is Rs.6 lakh on which you can enjoy a subsidy of 6.5% on the home loan interest rates. The repayment period is up to 20 years.
- Middle Income Group 1 (MIG 1)
Your annual household income should be between Rs.6 lakh and Rs.12 lakh to become eligible under this group. You would be eligible for a home loan amount of up to Rs.9 lakh with a subsidy of 4%. The repayment period for this group is up to 30 years which will help you never bother about paying the loan EMIs on time.
- Middle Income Group II (MIG II)
To be entitled under this group, your annual household income should vary between Rs.12 lakh and Rs.18 lakh. This category can help you get a home loan of up to Rs.12 lakh with a subsidy on the interest rates capped at 3%. The maximum repayment period that you can enjoy under the MIG II group is up to 30 years.
Other PMAY Eligibility Criteria at a Glance
In addition to the discussed Pradhan Mantri Yojana, you also need to adhere to some other aspects to prove your eligibility such as:
- You can opt for the PMAY scheme only if you don’t have a pucca house in any other parts of the country. No family members must own a home in India. A family means a husband, wife and unmarried sons and daughters
- You can avail the scheme only when you have not availed any other housing schemes of the Central or State Governments
- Your accommodation must be on the ground floor if you happen to be a senior citizen or a differently abled applicant
- You need to make sure to use eco-friendly construction materials for constructing a home
- The property must be registered in the name of a female. Later, a male member’s name can be added as the joint owner. If there is no adult female member in your family, then an adult male ‘head’ name can be used to register the property
You are now well-versed with the PMAY eligibility and apply for a home loan subsidy scheme accordingly to make the most of it.