The government’s flagship scheme Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (CLSS) and is categorized as urban and rural along with on the basis of annual income level to provide applicable benefits of subsidy on interest rates on home loans.
Under the ‘Housing for All’ scheme those with annual income less than Rs 18 lakh per annum can apply for it. For Economically Weaker Section (EWS) or Lower Income Group (LIG), the interest subsidy will be provided on housing loans for the acquisition and construction of the house. For the Middle Income Group (MIG), the interest subsidy will be provided on housing loans for acquisition or construction of houses, including repurchase. The interest subsidy aid will be upfront on the principal outstanding.
However, note that only a limited number of applications get approved each year by the government. With the help of this scheme, you can bring down the costs of owning your first house. Additionally, women get special interest rates and benefits under this scheme. Several banks also offer additional benefits to women borrowers. The Ministry of Housing and Urban Development has also made it easy with a simple process to apply for a house under the scheme. The borrower just needs to fill up a form with his/her key details. Find out what benefits are offered to women borrowers, and the process to apply for a house under the PMAY scheme.
Benefits for Women
- Housing loan for women is available at 8.25 per cent per annum
- The EMI for a housing loan of Rs 1 lakh will be Rs 853
- This scheme can be availed for a period of up to 20 years
- Loan up to Rs 70 lakh can be availed under this scheme
- No pre-payment charges under this scheme
- Interest is calculated on daily reducing balance
Here is how you can apply for a house under Pradhan Mantri Awas Yojana:
- Visit the official Pradhan Mantri Awas Yojana website and log in
- Under the tab ‘citizen assessment’ choose ‘benefit under the other 3 components’
- Then you need to enter your Aadhaar number, which once verified, the application progresses to the next page.
- To avoid defrauding the system, the government uses an Aadhaar number of individuals while applying for the scheme.
- On the second page, the borrower needs to enter his/her personal details. The borrower also needs to provide information about the state they are residing in, current residential address, the head of the family, and other similar details.
- After filling in the details the applicant can submit the application.
Who can apply for this scheme?
Pradhan Mantri Awas Yojana can be applied under two categories: Under Other 3 Components and Slum Dwellers
The Economically Weaker Sections (EWS), Middle Income Groups (MIGs) and Lower Income Groups (LIGs) are considered, under other 3 components in this scheme.
The annual income cap stands at Rs 3 lakh, for EWS. The maximum annual income is set between Rs 3 to 6 lakh, for LIG applicants, whereas the annual income cap for MIG is set between Rs 6 to 18 lakh.
Slum-dwellers who live in poorly built residences, and in unhygienic areas with the lack of proper infrastructure, drinking water, and sanitation facilities, can also apply for the Housing for All by 2022 Scheme under the Slum Dewellers tab.