Facts About the PMAY Scheme Which you Probably Don’t Know About - Loan Trivia

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Thursday, 10 January 2019

Facts About the PMAY Scheme Which you Probably Don’t Know About

PMAY or Pradhan Mantri Awas Yojana was initiated by the Government to provide affordable housing to every individual in the country by the year 2022. PMAY scheme was launched on June 2015 owing to the fact that there are still many families who do not have any real house to their name owing to lack of funds and high interest rates which are charged by most conventional financiers.

What Does PMAY Entail?

There are certain eligibility criteria which first needs to be met with respect to annual household income and property ownership that needs to be fulfilled. If done, then the property buyer gets a rebate on the already existing interest rates. This brings down the monthly installment to be paid and makes the purchase more affordable.

What is the Eligibility Criteria?

First you need to ensure that you do not already own a pucca house in the country because if you do, then you will not be eligible for the loan. Next, you need to check your annual household income based on which four categories have been made. These include -

 - EWS or Economically Weaker Section
 - LIG or Low Income Group
 - MIG I and II meaning Middle Income Group

EWS has been categorized as those whose annual income household is up to Rs. 3 lakhs per annum, LIG are those with annual household income between Rs. 3 lakhs and Rs. 6 lakhs, MIG I are those whose annual household income is between Rs. 6 lakh and Rs. 12 lakhs, while MIG II refers to those whose annual income is between Rs. 12 lakhs to Rs. 18 lakhs.

What is the Applicable Subsidy?

Following is the subsidy on the interest rates for each income category -

EWS - 6.50%
LIG - 6.50%
MIG I - 4%, and
MIG II - 3%

Reference Read:

Understanding the Reality behind the Pradhan Mantri Awas Yojana Scheme

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