Pradhan Mantri Awas Yojana Guidelines for income Rs. 3 – 6 Lakhs
Updated on December 18, 20186 mins read
Updated: January 2018 Avail interest subsidy up to 2.67 Lakhs under PMAY – CLSS for EWS and LIG income group. In June 2015, Prime Minister Narendra Modi announced that India needs at least 2 crore houses in the range of 5-15 Lakhs. This project was started under the name Pradhan Mantri Awas Yojana(Urban). The Ministry of Urban Housing and Urban Poverty Alleviation has been designated to over look this ambitious project. The project is to be implemented in through four different verticals:
In – Situ rehabilitation of existing slum dwellers
Credit linked subsidy scheme
Affordable housing in partnership
Subsidiary for beneficiary led individual house construction/enhancement
The Pradhan Mantri Awas Yojana official website has all the details on the on the initiative. You will also find updates, amendments and new announcements related to the schemes on this website. Out of the four verticals, Credit linked Subsidy scheme that offers discount on interest rate for home loans. The scheme is divided in to two categories:
Credit linked subsidy scheme for EWS/LIG
Credit linked subsidy scheme for MIG
If your income is between Rs.6- 12 Lakhs and Rs.12-18 Lakhs a year, you should read our detailed post on the Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (MIG I & MIG II) In this article, let’s take a look at the Credit Linked Subsidy Scheme for EWS/LIG. This is popularly known as Pradhan Mantri Awas Yojana for Economically weaker section and Pradhan Mantri Awas Yojana for Low income group. Here are the features of the scheme at a glance:
Annual household income
Rs. 3-6 Lakhs
Maximum loan value for subsidy
Rs. 6 Lakhs
No processing fees for up to 6 Lakhs loan
No processing fees for up to 6 Lakhs loan
Maximum loan tenure
Subsidy on interest
Maximum interest subsidy
Maximum carpet area eligible
30 Sq Mtr (~323 Sq Ft)
60 Sq Mtrs (~646 Sq Ft)
Where can property be located
Any area deemed as town under census 2011
Any area designated as town under census 2011
Scheme open for applications till
No last date as of now
No last date as of now
Pradhan Mantri Awas Yojana eligibility for EWS/LIG groups There are two important factors that make you eligible:
You should not own a pucca house anywhere
combined income of your family unit should be less than Rs.6 Lakhs a year
Other than that, here are some important points to note:
The house you buy/build using a loan with subsidy, should be in the name of female head of the family
She can jointly own the house with the male head of the family
Male head of the family can own the house if there is no female head
The Government has directed banks to give preference to:
People belonging to SC/ST/OBC
How to apply for Pradhan Mantri Awas Yojana EWS/LIG When you want to take a loan and avail the benefit of this scheme, the first step is to find a bank that has signed an MOU with the two nodal institutions – NHB or HUDCO Then you need to apply for loan as usual, giving details of your income, property etc. Additionally, you would need to give a letter declaring that you do not own a pucca house anywhere. Pradhan Mantri Awas Yojana application form and procedure You can apply for interest rate subsidy in two ways:
Pradhan Mantri Awas Yojana online form – direct application for subsidy
Apply through bank or housing finance company
Pradhan Mantri Awas yojana Application form online You can apply for subsidy online free of cost through http://pmaymis.gov.in. You can also apply online with the help of officials at the Common Service Centre (CSC). They would charge you a nominal fee of Rs.25 for this service. You can locate the nearest CSC on this linkHere are the steps to apply for Pradhan Mantri Scheme onlineStep 1 Start by selecting ‘benefit under other 3 components’ Step 2 Enter adhar details correctly Step 3 Enter all other details correctly Step 4 Save your application. Your application process is now complete. You can track the status of the application on the same website. Once your application is processed, you can submit a print out to the local Municipality or Nagar Palika office. Pradhan Mantri Awas Yojana Application through bank Applying for the subsidy through bank is a simple procedure too. You can apply for loan and the benefit at the same time. If you are eligible for the scheme you can select a bank from this list of banks that have signed MOU for offering this scheme. Inform the bank that you wish to avail benefit under the scheme and follow up regularly. The whole procedure may take 2-3 months. Home Loan Application and Documents Under Pradhan Mantri Awas Yojana Since the procedure to apply is the same, the documentation is also the same as a regular home loan application, with the exception of a declaration letter.
Proof of identity – PAN card, Aadhar card, voter id card, Driver’s licence, MNERGA number etc
Proof of category – SC/ST/OBC/Minority certificate
Proof of nationality – Passport, Aadhar Card, birth certificate
Proof of income – Form 16, Income Tax returns and bank statements, if any. In case you don’t have any of these, you would need to provide a self declaration of income.
Pradhan Mantri Awas Yojana Subsidy Calculation You can get a up to Rs. 2.67 Lakhs as subsidy under the scheme. This is calculated using a method called Net Present Value. An official Pradhan Mantri Awas Yojana subsidy calculator is available on the websites on Pradhan Mantri Awas Yojana and National Housing board. You could enter your loan amount to know how much subsidy you are eligible for. The maximum loan amount you can enter is Rs.6 Lakhs. How much loan can I take You can build a house of any size and take a loan of any value. But when you apply for subsidy, the benefit will only be on the first Rs.6 Lakhs. Can I switch over home loan from another bank Switch over and balance transfers are not eligible for subsidy benefit under the scheme. You will also not be able to switch your loan from one bank to another after you take the subsidy benefit. However, switching your loan from one bank to another could save you lot of money too. You can learn more about switching over home loan here.How is interest subsidy paid under Pradhan Mantri Awas Yojana The subsidy will be directly credited into your loan account. Here is how it works: How much will I save on subsidy from Pradhan Mantri Awas Yojana If you take a loan without the benefit of the scheme you pay a substantial amount as interest
Total interest paid
over 20 years
If you do take the benefit of the scheme, Rs.2.67 Lakhs will be credited into your loan account at the start. This brings down the EMI immediately
Loan value after subsidy
Rs. 17.33 Lakhs
Equated monthly installments (EMI)
Total interest paid over 20 years
Over 20 years, you would save nearly Rs.3 Lakhs.
Building a home is a large expense. You should use every possible option to save your heard earned money. Credit Linked Subsidy Scheme is one such option that you must utilise.
All the procedures have been kept fairly simple. Detailed information on the scheme, calculators, online application forms are provided for easy access to the scheme. For any assistance, including filling up the form you can visit the nearest Common Service Center.
Here are some final points to keep in mind when you apply for Pradhan Mantri Awas Yojana EWS/LIG
Aadhar number is mandatory to apply for subsidy
You can use the loan amount to buy/build a new home or repurchase an existing house
You can use the loan amount to extend your house with toilets, kitchen etc
The house must be brick and mortar, i.e ‘pucca’ and must meet all safety and hygiene standards set by authorities.
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