PMAY: All You Need To Know About The Eligibility Criteria

An instrumental housing subsidy scheme designed to aid the government’s agenda of ‘Housing For All By 2022’, Pradhan Mantri Awas Yojana (PMAY) offers many benefits to homebuyers across various socio-economic segments. The government aims to construct housing units for more than 20 million urban dwellers across India, and PMAY plays an important role there with its objectives to provide housing for all, subsidize purchases for various segments, and enable the public sector to join hands with the private sector to provide housing at a large scale.

As part of PMAY, the government has announced two schemes that subsidize the interest amount for home loan borrowers in urban India. The first scheme, which pertains to interest rate subsidy, is applicable to the Economically Weaker Sections (EWS) and the Low-Income Group (LIG). The other scheme is for the Middle-Income Group (MIG). PMAY provides interest rate subsidies to EWS and LIG individuals.

Here’s everything you need to know about the eligibility criteria for the two aforementioned PMAY schemes.

Eligibility for scheme applicable to Economically Weaker Sections (EWS) and the Low-Income Group (LIG):

• Candidate for this scheme should not own a ‘pucca’ house in their name, spouse’s name or in the name of an unmarried child, in any part of India.
• In the EWS category, the total annual income of the family should not exceed Rs. 3 lakhs. In the LIG category, the total annual income of the family should not exceed Rs. 6 lakhs.
• The subsidy applicant must submit to the lender a self-declaration of total family income and the title of the property to be acquired.
• The property can either be an independent unit or a single unit in a multistoreyed building. For the EWS segment,the size of the property is restricted to a carpet area of up to 30 square metres,and up to 60 square metres for the LIG segment. Additionally,the property must be equipped with basic infrastructure, such as water, electricity, toilets, sewerage and paved roads.

Eligibility for scheme applicable to purchases made under Credit Linked Subsidy Scheme (CLSS):

• The applicant’s family income should not be above Rs.18 lakh per annum.
• The maximum carpet area of the property eligible for the subsidy is 150 square metres.
• The reduced GST rates will be applicable to low-cost housing projects as well. However, if the applicant does not meet aforementioned criteria, they will have to pay GST applicable at 12 per cent.

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