How to Apply for a Home Loan under Pradhan Mantri Awas Yojana?

Home ownership is the ultimate dream for most individuals. It not only provides stability but also helps in building generational wealth. But with high property prices and rising interest rates, taking a home loan can be daunting. PMAY Eligibility Requirements Fortunately, the Pradhan Mantri Awas Yojana (PMAY) is here to help! This scheme allows you to avail a home loan with lower interest rates, relaxed eligibility criteria, and other benefits. This article will take you through the step-by-step process of how to apply for the Pradhan Mantri Awas Yojana(PMAY). Get ready to own your perfect home with this unique opportunity!

Things to Keep in Mind Before Taking to a Home Loan Under PMAY (Pradhan Mantri Awas Yojana)

A government program called the Pradhan Mantri Awas Yojna (PMAY) – Credit Linked Subsidy Scheme (CLSS) was established with the following objectives:

The program offers subsidized home loan interest rates based on your household’s income. The advantage is available not just for purchasing new or used homes but also for building, enlarging, or upgrading already-existing kucha/semi-pucca homes. You must first be eligible for the home loan subsidy before using it. 

The Pradhan Mantri Awas Yojana – Urban (PMAY – U) implementation duration has been extended by the Union Cabinet till December 31, 2024, except for the Credit Linked Subsidy Scheme (CLSS). For MIG I and II under PMAY U, the CLSS vertical was valid through March 31, 2021; for LIG/EWS, it was right through March 31, 2022. No new dwellings will be approved for construction during the extended period. However, under the BLC, AHP, and ISSR verticals of PMAY U, financial help will be given to complete 122.69 lakh dwellings, already sanctioned through March 31, 2022.

PMAY Eligibility Requirements

You must meet the following Pradhan Mantri Awas Yojana eligibility to get PMAY benefits:

PMAY Basic Eligibility Requirements:

• The program is for households with a husband, wife, and unmarried child(ren). Regardless of marital status, an adult family member who earns a living might be considered a distinct household under the MIG category.
• The recipient family in India should own no pucca house in the name of any family member.
• When it comes to married couples, only one of the partners, or both of them together in joint ownership, will be qualified for a subsidy.
• The recipient households weren’t supposed to receive benefits from any government housing program, including PMAY.
• Borrowers of home loans who first qualified for the subsidy but later switched to a different lender for a balance transfer are ineligible to apply for the benefit again.
• Families receiving benefits under the MIG income group are required to provide their Aadhaar numbers to receive the subsidy.

PMAY Eligibility Requirements Based on Income:

1. EWS/LIG 1.

• Eligible Family Income: The eligible family’s annual household income must fall within the following ranges:
  • Up to Rs. 3 lahks for EWS
  • LIG – Between 3 lakh and 6 lakh rupees
• Woman Ownership: It is required to own a woman. The home, whether brand-new or already exists, should be held jointly with the wife (if married) or in the name of an adult female family member. The stipulation is not required when building a new home or extending or renovating an existing kuccha or semi-pucca house. A male household member may own the property only in their name if there is no adult female family member.
• Maximum Carpet Area: According to the program, a house’s carpeting cannot exceed 30 square meters for EWS and up to 60 square meters for LIG.

1. MIG (I and II)

• Eligible Family Income: The eligible family’s annual household income must fall within the following ranges:
  • Between Rs. 6 lahks and Rs. 12 lakhs for MIG-I
  • MIG-II: between 12 and 18 lakh rupees

• Woman Ownership: Owning a woman is optional.
• Carpet Area: The MIG-I residence must have a carpet area of 160 square meters and two hundred square meters, MIG-II.

Those eligibilities should be required before registering for Pradhan Mantri Awas Yojana.

How to apply for the PMAY Interest Subsidy?

Housing & Urban Development Corporation (HUDCO) and National Housing Bank (NHB) are the primary nodal institutions through which the PMAY house loan interest subsidy is distributed. The pre-listed lending institutions receive support from these government entities, who then assist the qualifying beneficiaries in receiving the interest subsidy benefit. The following points shall be considered on how to apply for a home loan subsidy online.

• After disbursing your mortgage, the lender will send the necessary information to the National Housing Bank (NHB) for data validation and other checks.
• NHB grants the subsidy to qualified borrowers after doing due diligence.
• All qualified borrowers will receive the subsidy amount, which will be paid to the lender.
• The lender will credit the subsidy amount to the appropriate home loan account of the borrower and make the necessary adjustments to the loan after receiving it from NHB.

PMAY – CLSS Scheme Details

Winding Up Note

The Pradhan Mantri Awas Yojana offers an excellent opportunity for individuals to fulfill their dreams of owning a home through the provision of affordable home loans under PMAY. The scheme provides various benefits, such as low-interest rates, extended repayment tenure, and substantial subsidies. However, potential home loan applicants must carefully understand the eligibility criteria and documentation required to avoid complications during the application process. With proper knowledge and guidance, taking a home loan under the Pradhan Mantri Awas Yojana can be a tangible and rewarding step towards homeownership.

In case of any query regarding how to apply for PMAY online, feel free to connect with our legal experts at Legal Window at 72407-51000.