The Pradhan Mantri Awas Yojana (PMAY) comprises two distinct components: PMAY-Urban (PMAY-U) and PMAY-Gramin (PMAY-G), each aimed at providing affordable housing to different segments of the population. PMAY-U focuses on urban areas and seeks to offer housing solutions to Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG) residing in statutory towns. In contrast, PMAY-G is tailored for rural regions, targeting households without adequate housing.
The PMAY-Urban scheme specifically addresses the housing requirements of the urban poor. It also includes provisions for slum dwellers residing in densely populated areas where basic amenities such as sanitation, clean drinking water, and infrastructure are severely lacking.
Eligibility Criteria
Eligible beneficiaries under the PMAY-U scheme include families falling under the categories of MIG, LIG, and EWS. The scheme guidelines mandate ownership of the house to be in the name of female head of the household or in joint ownership with the male member. Under the Pradhan Mantri Awas Yojana (PMAY), women are prioritized and can be primary borrowers for home loans. Specifically, single women, widows, and the female head of the household are given preference under the scheme. Women also benefit from reduced stamp duty and potentially faster processing of their loan applications. Additionally, women who fall under the Economically Weaker Sections (EWS) and Lower Income Group (LIG) are eligible for a 6.5% rebate on loans up to Rs. 6 lakh.
Beneficiaries from the EWS category are entitled to full assistance under the scheme, while those from the LIG and MIG categories are eligible for benefits under the Credit Linked Subsidy Scheme (CLSS) only. To be recognized as an EWS or LIG beneficiary, applicants must submit an affidavit as proof of income.
To qualify, the beneficiary family must not own a pucca (permanent) house in any part of India, either in the name of the applicant or any family member. A family is defined as comprising a husband, wife, and unmarried children. Additionally, an unmarried adult—irrespective of gender—may be considered a separate household.
The income thresholds for various beneficiary categories under PMAY are as follows:
- Economically Weaker Sections (EWS): Annual household income up to ₹3 lakh
- Low-Income Group (LIG): Annual household income between ₹3 lakh and ₹6 lakh
- Middle-Income Group I (MIG-I): Annual household income between ₹6 lakh and ₹12 lakh
- Middle-Income Group II (MIG-II): Annual household income between ₹12 lakh and ₹18 lakh
Key Highlights of PMAY Scheme
| Feature | EWS | LIG | MIG-I | MIG-II |
| Maximum Interest Rate Subsidy | 6.5% | 6.5% | 4% | 3% |
| Maximum Carpet Area of Dwelling Unit | 30 sq. m | 60 sq. m | 160 sq. m | 200 sq. m |
| Maximum Subsidy Amount | ₹2.67 lakh | ₹2.67 lakh | ₹2.35 lakh | ₹2.30 lakh |
| Maximum Loan Amount Eligible for Subsidy | ₹3 lakh* | ₹6 lakh* | ₹9 lakh** | ₹12 lakh** |
| Loan Tenure | Up to 20 years | Up to 20 years | Up to 20 years | Up to 20 years |
* Subsidy for EWS and LIG categories is available only on loan amounts up to ₹6 lakh. Any additional loan amount beyond this limit will attract non-subsidized interest rates.
** For MIG categories, loans exceeding ₹9 lakh (MIG-I) and ₹12 lakh (MIG-II) will not be eligible for interest subsidy. Subsidy is calculated on a Net Present Value (NPV) basis at a 9% discount rate over a loan tenure of up to 20 years or actual tenure, whichever is shorter.
Credit Linked Subsidy Scheme (CLSS)
The CLSS is a central component of the PMAY-Urban mission. It provides eligible beneficiaries with an interest subsidy, which is directly credited to their home loan account.
Families with annual incomes up to ₹3 lakh (EWS), ₹6 lakh (LIG), and ₹18 lakh (MIG) may qualify for CLSS benefits, depending on the sub-category. The lending institution will submit the subsidy claim on behalf of the borrower to the National Housing Bank (NHB). The NHB will verify the application to ensure there is no duplication. Upon validation, the subsidy amount is disbursed to the lending institution, which subsequently credits it directly to the borrower’s loan account.
The following article will delve into every aspect of home loans—from HOW TO EXAMINE TITLE DEEDS WHILE BUYING HOUSE PROPERTY, eligibility, documentation, switch over charges, fixed and floating interest rates, teasing interest rates to comparisons across banks, loan transfer procedures, and smart tips for choosing the right loan product. In addition to the above benefits of RERA and CERSAI data are also explained.
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