In 2015, the then Prime Minister of India launched Pradhan Mantri Awas Yojana or PMAY with the motto of “Housing for All” by 2022. This scheme was launched both for rural and urban areas of the country.
The initiative is primarily targeted at lower-income groups and economically weaker sections of the country so that they can afford house ownership. With this scheme, eligible beneficiaries can avail of subsidized interest rates on their home loans.
Thus, it is imperative for individuals to know about this scheme in-depth to reap the benefits of it, starting from its features to the documentation process.
Features of the PM Awas Yojana
Following are some of the key features of this credit-linked housing scheme.
- Individuals can avail a home loan with a subsidy of 6.50% on the interest rate for a tenure of up to 20 years.
- Makes the use of eco-friendly material for house construction mandatory under this scheme.
- Offers accommodation on the ground floor for senior citizens and differently-abled.
- Available for rural and urban areas of the country alike.
- Under this scheme, it is compulsory to have a woman co-owner to be eligible for interest rate subsidy.
These specifications will allow individuals to understand how a credit-linked subsidy scheme (CLSS) works.
Eligibility criteria for PMAY
Individuals who want to avail funds under the Pradhan Mantri Awas Yojana need to fulfill specific eligibility criteria. Some of them are mentioned below.
- The beneficiary should not avail credit under any other housing scheme offered by the Government.
- The beneficiary or any other family member must not own a pucca house in any part of the country.
- Households with an annual income of up to Rs.18 lakh are eligible to apply for this Pradhan Mantri Awas Yojana scheme.
In case you fail to meet these requisites, you can alternatively opt for a home loan from a trusted HFC that offers credit up to Rs.3.5 crore against simple eligibility requirements.
They also extend pre-approved offers that simplify loan processing and enable prompt financing. Such offers are also available on a range of financial products like loans against property, home loans, and many more. You can check your pre-approved offer instantly by submitting your name and mobile number.
Individuals should also need to know about the application process to make the most of PMAY benefits.
Application process for a loan under PMAY
Following is the step-by-step guide to applying for Pradhan Mantri Awas Yojana loan benefits online.
- Go to the official PMAY website.
- Open the “Citizen Assessment” tab and choose the category that matches your financial background.
- After selecting the income category, you need to enter the Aadhaar details to avail of this scheme.
- Next, fill up the PMAY online application form where you would need to mention personal, professional, and financial information.
- Enter the captcha code and click on “Submit”.
- On submission, you will get an application number that you would need later for reference.
Besides, PMAY registration is mandatory to avail funds through this scheme. This process allows you to get assured funds and reap all benefits of Pradhan Mantri Awas Yojana PMAY once you are selected as a beneficiary.
Documentation to complete
Following documents are vital to avail funding under this scheme.
- Aadhaar card.
- Identity proof.
- Address proof.
- Relevant caste certificate (if applicable).
- Proof of annual income (salary slips, bank account details, IT return, property valuation certificates, etc.).
Thus, PMAY eases your way to becoming a homeowner with a subsidized home loan interest rate. However, you should also know about all terms and conditions before applying for a home loan under Pradhan Mantri Awas Yojana to maximize your benefits from it.
Read Also: Best Performing States and Union Territories Under PMAY
