The National Democratic Alliance (NDA) Government at the Center has taken some steps towards helping people get their own homes by 2022. With the tagline ‘Housing for all,’ the Pradhan Mantri Awas Yojana has recently expanded its reach.
It is done to cater to the housing needs of Economically Weaker Section (EWS), and Low Income Group (LIG) along with the Medium Income Groups (MIG – I and II).
Yes, the Prime Minister recently increased the quantum of a loan eligible for interest benefits under the PMAY in city or urban areas to Rs.18 lakh.
If you wish to know about the Pradhan Mantri Awas Yojana, then here is some vital information about it in this post. Read on!
What is Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana (PMAY) was launched in 2015. The Government focused on constructing affordable Pucca houses with water, sanitation and power facilities.
This ‘Housing for all’ scheme was earlier for covering people in EWS (earning up to Rs.3 lakh/year) and LIG (yearly income not exceeding Rs.6 lakh). But, it also covers individuals in the MIG I and MIG II group earning between Rs.6-12 lakh and Rs.12-18 lakh per year.
You can also use the credit-linked subsidy scheme of the Pradhan Mantri Awas Yojana to avail finance from banks and NBFCs at subsidized home loan interest rates. As a result, you can pay lower EMIs while availing the amount for your own home.
Features of PMAY
The Pradhan Mantri Awas Yojana has some objectives and features such as:
- One can avail a home loan for a tenor of 20 years at a subsidized rate of interest at 6.5%, 4% and 3% as per the income groups that you belong
- Senior citizens and differently-abled citizens are to be given first preference to get housing solutions on ground floors
- Only eco-friendly and sustainable technologies can be utilized for constructing houses under the ‘Housing for All’ plan
- Pradhan Mantri Awas Yojana plans to cover around 4041 legal cities and towns across the length and breadth of the country
How to Avail the Pradhan Mantri Awas Yojana Home Loan Subsidy?
You can follow some steps to make the most of the Pradhan Mantri Yojana home loan subsidy. Take a look.
- Apply for a housing loan from any bank or NBFC of your choice
- Open the PMAY website and download the application form for the subsidy scheme
- Take the printout and fill out the form
- Submit the form with needed documents to nearby office accepting such forms
- Once your application is deemed legal, it will be forwarded to CNA
- After getting the approval, the CNA will send the subsidy amount to a loan approving lender
- The subsidy amount will now be credited to the home loan account. Hence, it will reduce the total principal amount, and you will enjoy lower home loan interest rates
Documents Required for PMAY Scheme
You should keep the following documents ready at the time of applying for the Pradhan Mantri Awas Yojana home loan:
- KYC documents
- Salary Slips or recent bank account statements
- Last 2 years’ Income Tax Returns (ITR)
- Bank account statements of the previous 2 years
- Affidavit/self-certificate as the proof of income
- Customer declaration and undertaking
- Extra application form, and
- Aadhaar Card
Some of the basic information about the Pradhan Mantri Awas Yojana home loan is now in front of you. You can apply for the Pradhan Mantri online and take a step towards having your own home.