The economically weaker sections of society, including the lower-income groups of society, find it challenging to buy an affordable house for their living. They are either living in a kutcha house or don’t have a home which they can call theirs. Sympathizing with the poor people, the government introduced a housing scheme in June 2015 to provide affordable housing to them. Named as Pradhan Mantri Awas Yojana, it aims to give a Pakka house to the Urban and Rural residents along with other basic amenities like 24*7 power supply and personal hygiene.As part of the scheme, the government provides home loans for buying a home at a subsidized rate of interest of 6.50%.
Who is eligible for a home loan at a subsidized rate of interest?
The amount of home loan under PMAY scheme varies from individual to individual based on the income level.
- Individuals whose income falls in the bracket of Rs 3 Lakhs per annum are categorized as Economically Weaker Sections. They are eligible for a loan amount up to Rs. 6 Lakhs. Further, the maximum dwelling unit or net carpet usable for a house is 30 Sq. m.
- If you have an income level Rs 3 Lakhs to Rs 6 Lakhs, you fall in the bracket of Lower Income Group. You are also eligible for a home loan amount up to Rs 6 Lakhs. However, the cap for the net carpet area is 60 Sq.m.
- Middle-class individuals are categorized into two groups; MIG 1 and MIG 2. MIG1 have an income ranging between Rs 6 Lakhs to Rs 12 Lakhs, and they are eligible for a loan amount up to Rs. 9 Lakhs. MIG2 can get a loan amount up to Rs 12 Lakhs, and they have income between Rs 12 Lakhs to 18 Lakhs. The net carpet area for a dwelling unit for MIG1 and MIG2 is 160 Sq. m. and 200 Sq. m respectively.
Other eligibility criteria for getting a home loan subsidy:
- Individuals can get a credit-linked subsidy for a home loan only if they are first-time home loan borrowers.
- If the home loan borrowers have previously availed any government scheme for the house, they are not eligible for getting a home loan subsidy under PMAY scheme.
How can you get a home loan subsidy under PMAY: If the borrowers meet the eligibility as mentioned above criteria, they can register for PMAY through offline and online modes.
To register online through PMAY website, follow these steps:
- Visit the pmaymis.gov.in.
- Next, under the citizen assessment option, Choose between ‘ For slum dwellers’ and ‘Benefit under the other three components’.
- Now enter the Aadhar details on the page displayed.
- Next, fill in necessary information such as name, contact number and others in the application form.
- After filling the form, enter the Captcha code and click on the Save button.
- The concerned authorities will verify the application form along with the documents. In the meantime, you can track the status of your application online by visiting the PMAY website.
The borrowers can also register for getting a home loan subsidy through offline mode by visiting the Common Service CentreTo register, by visiting the nearest common service centre and filling the application form for PMAY. The fee for filing the application form under PMAY is Rs. 25 plus GST.
What are the documents that you would require while applying for PMAY scheme: You must provide the following documents if you are applying for a home loan subsidy through any mode.
- Aadhar Card
- Passport
- Salary slips
- IT return statements
- Bank details and account statements
- Address proof
- PAN card, Voter ID, Driving License
- Proof for minority
- Economically Weaker Section certificate
- Low Income Group certificate
- Details of the property
- Property valuation certificate
Conclusion: Once you have registered for the scheme, you will receive the verification if you are eligible for a home loan. You can then apply for the home loan through the listed public sector and private sector banks.
Summary:Home loans for poor in the pipelin
The economically weaker sections of society, including the lower-income groups of society, find it challenging to buy an affordable house for their living. Sympathizing with the poor people, the government introduced a housing scheme named as Pradhan Mantri Awas Yojana which aims to give a Pakka house to the Urban and Rural residents along with other basic amenities like 24*7 power supply and personal hygiene.As part of the scheme, the government provides home loans for buying a home at a subsidized rate of interest of 6.50%.
Who is eligible for a home loan at a subsidized rate of interest?
Individuals can get a credit-linked subsidy for a home loan only if they are first-time home loan borrowers and have not previously availed any government scheme for the house.
| Groups | Interest Subsidy | Loan Amount | Net usable carpet area |
| EWS | 6.50% | 6 Lakhs | 30 square meters |
| LIG | 6.50% | 6 Lakhs | 60 square meters |
| MIG 1 | 4.00% | 9 Lakhs | 160 square meters |
| MIG 2 | 3.00% | 12 Lakhs | 200 square meters |
If the borrowers meet the eligibility as mentioned above criteria, they can register for PMAY through offline and online modes.
