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Pradhan Mantri Awas Yojana

Almost every Indian dreams of having his or her own home. If you are among them and you aren’t able to afford one till date, then you should know of Pradhan Mantri Awas Yojna home loan assistance scheme which will make your dream of owning a home in an urban area possible. This scheme was earlier known as Housing for all and is an initiative of Prime Minister Narendra Modi.

This central government initiative has the rallying cry of ‘Housing for all by 2022’. Something of this scale and sweep necessarily involves partnering with various implementing agencies. As for beneficiaries, there are clear eligibility criteria and processes for getting the loan which they should be aware of.

Why Pradhaan Mantri Awas Yojna Loan Scheme was started?

✓ One, it aims to transform slum areas by building homes for slum dwellers in collaboration with private developers.

✓ Two, it plans to give credit-linked subsidy to middle income group (MIG) on loans taken for new construction or renovation of existing homes.

✓ Three, the government will chip in with financial assistance for affordable housing projects in partnership with states/union territories for the economically weaker sections (EWS).

✓ Four, there is subsidy for beneficiary-led individual house construction/enhancement. The government will extend direct financial assistance to EWS.

What are the top features and benefits of PMAY?
  • Loan Amount

Individuals in EWS and LIG categories can avail a home loan of up to Rs 25 lakh including insurance, and those in MIG can avail a home loan of up to Rs 140 lakh including insurance (minimum loan amount Rs 50,000 excluding insurance).

  • Tenure and term

The tenure of your home loan will range from 1 year to 30 years. The term, however, does not extend beyond the retirement age or 60 years, whichever is earlier (70 years for self-employed individuals).

  • Purpose

Credit-linked subsidy will be available for housing loans availed for new/resale purchase of home and construction loan for all segments. Additionally, for EWS/LIG, extension/improvement of rooms, kitchen, toilet, etc., to existing dwelling can be done.

  • Interest Subsidy

For EWS and LIG, the credit-linked subsidy will be available only for loan amounts up to Rs 6 lakh and such loans will be eligible for an interest subsidy at the rate of 6.50 per cent p.a. (Rs 2.67 lakh approximately), for a tenure of 20 years or during the tenure of loan, whichever is lower, to eligible customers under the scheme. For MIG-1 customers, subsidy will be applicable for loan amounts up to Rs 9 lakh and such loans will be eligible for an interest subsidy at the rate of 4 per cent p.a. for a tenure of 20 years. For MIG-2 customers, subsidy will be available for loan amounts up to Rs 12 lakh and such loans will be eligible for an interest subsidy at the rate of 3 per cent p.a. for a tenure of 20 years.

  • Processing Fee

Nil (Processing fee on loan amount as per maximum subsidy applicable [as per customer applicability] to be refunded once claim is received from National Housing Bank, or NHB.)

  • Easy Repayments

You have two options for repayment of the loan based on the EMIs payable on your home loan.

  • Through ECS (electronic clearing service) based on standing instructions to your bank
  • Through postdated cheques (PDCs) drawn on your savings/salary account
  • Tax Benefits

Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under Section 24(b) is Rs 200,000 for the interest amount paid in the financial year, and up to Rs 150,000 (under Section 80C) for the principal amount repaid in the same year.

  • Applicant and co-applicant

Home loans can be applied for by an individual. The loan amount can be further enhanced by including an earning co-applicant. Female property ownership is mandatory for EWS/LIG category but not so for MIG category.

  • Disbursing Agencies

The Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as central nodal agencies to channelise the subsidy to the lending institutions, including banks and financial institutions. Hence, small banks, non-banking financial companies and microfinance institutions have also been recognised as primary lending institutions under the scheme.

What are the Phases of PMAY?
  • Phase 1- It began in April 2015 and ended on March 2017. About a hundred cities were selected under this.
  • Phase 2 – This phase started in April 2017 and will go on until March 2019. It will cover 200 more cities.
  • Phase 3 – In this last phase, all remaining cities will be covered, and it will be last from April 2019 to March 2022.
Who all are eligible for Pradhan Mantri Awas Yojna Loan?

The eligibility criteria for Pradhan Mantri Awas Yojna loan is quite simple.

  • Any person who belongs to lower income group, also known as LIG or economically weaker sections, abbreviated as EWS of the society will be eligible for Pradhan Mantri Awas Yojna, if he or she meets the following parameters. Please note that people who belong to the middle-income group (MIG) are also eligible.
  • You must not own a house made of a high-quality material or a pucca home in your name or the name of anyone in your family.
  • Your family should consist of you, your spouse and your unmarried children.
  • Households with an annual income of up to INR 3 lakhs belong to the economically weaker section while households with an annual income of INR 3 to 6 lakh belong to the low-income group.
  • Households with an annual income of INR 12 Lakh per annum belong to the MIG-1 category while households with an annual income of INR 18 lakh belong to the MIG-2 category.
  • People who belong to these income categories and an interest in home loan PM Yojna need to furnish an affidavit or proof of income.
  • The Pradhan Mantri Awas Yojna loan preference is given to women. This proves it’s a pro-woman scheme. The preference also extends to the older citizens and the disabled people.
Which banks are providing PMAY loan or what is the List of Banks Offering Loan?

If you are after Pradhan Mantri Awas Yojna bank list to know which bank you need to contact to make your dream of owning a home a reality, then we suggest you simply click here.

How to Apply for PM Awas Yojna Loan?

Here you can know how to apply for PM Awas Yojna loan online:

  • You need to visit the official PMAY website and click on ‘Citizen Assessment’ and then ‘Benefits under other 3 Components’.
  • The next step is to provide your Aadhaar number in the given box without any spaces and click on check.
  • Once your Aadhaar number is verified, you will be given access to a PMAY form.
  • In the PM Yojna Loan form, you need to provide personal details, bank account details, contact information, income details and your Aadhaar information.
  • After you have provided all the required information, you need to tick the box that states you are aware of any claims, etc. Then you need to enter the security captcha and click on save.
  • At this stage, you will get an application number. Make sure you note it down for future reference.
  • If you want to apply for Pradhan Mantri Awas Yojna home loan offline, you just need to visit the local PMAY listed bank’s branch with all the necessary documents required.
  • After you receive the approval, you should select the property and finalize the purchase deal while getting a subsidized rate of interest.
What are the documents required to apply for PM Awas Yojna

The process of applying for Pradhan Mantri Awas Yojna home loan is quite easy if you are eligible for each scheme and keep the following documents handy.

  • An identity proof like PAN Card, Aadhaar Card, Voter ID card or driver’s license.
  • A copy of your address proof
  • A perfectly filled PMAY application form
  • An income proof
  • Latest IT return or Form 16
  • An affidavit claiming that you or a family member don’t own a pucca home
  • Bank account statement of last 6 months
  • Valuation certificate of the property you want to buy
  • A construction agreement that is done with the developer or builder
  • Certificate furnished by an architect or engineer that confirms the cost of new construction or repairs
  • An approved plan of construction
  • A certificate by the architect that mentions the fitness of the house
  • A NOC from any housing society or an equally competent authority
  • Property documents such as the letter of allotment
  • Receipt of advance payment done by you for purchase
How to buy a house under the Pradhan Mantri Awas Yojana?

A person can buy or book a house as per the Pradhan Mantri Awas Yojana as a part of the government or even private projects. You are also free to build a house on your own. The house you are planning for must have toilets and needs to be created in an eco-friendly manner. You can apply for Pradhan Mantri Awas Yojna home loan only once. You can also apply for a loan for repair and renovation of a house.

How to calculate home loan repayment amount?

We have done a sample calculation for you to make it easier for you to understand.

  • House value (A) – Rs 3,500,000
  • Home loan amount (B) – Rs 2,400,000 (70% of the value)
  • PMAY subsidy (C) – Rs 230,167
  • Net loan amount (B-C) – Rs 2,169,844

What are the Subsidized Rates of Interest?

Type of Scheme

Household Income of the Applicant

Carpet Area (in square meters)

Subsidy Calculated on the basis of Maximum Loan Availed

Maximum Subsidy

LIG and EWS

Up to INR 6 Lakh

60

6.5 %

INR 2.67 lakh

MIG 1

INR 6 to INR 12 Lakh

90

4%

INR 2.35 Lakh

MIG 2

INR 12 Lakh to INR 18 Lakh

110

3%

INR 2.30 Lakh

 

Is there a PMAY Subsidy Calculator?

To make use of a PMAY Calculator simply click here

Is there any capping on area or property value for EWS/LIG and MIG?
  • EWS/LIG – No
  • MIG I & II – Area upto 90 square meters and upto 110 square meters
What is the Validity of PMAY Scheme?

Some More FAQs

What is CLSS?

CLSS means Credit Linked Subsidy scheme and it decreases your home loan burden as the government chips in the required amount.

What is the Processing Fee to Avail Home Loan PM Yojana?

There is no processing fee associated with any aspect of Pradhan Mantri Awas Yojana.

How a Person Gets Subsidy Benefit as per PMAY?

The bank will claim subsidy benefit on your behalf from National Housing Bank, that will then conduct due diligence to ensure there are no multiple requests from one person. If you are proved eligible, the subsidy amount will be paid to your bank. Once the bank gets it, the amount will be credited upfront to the loan account.

Should the Aadhaar Cards be Provided for All Members of a Beneficiary Family?

Yes, subsidy as per MIG 1 and MIG 2 schemes are processed only if the Aadhar card details of all the family members are provided.

If an Applicant for PMAY Owns a Plot Already, Will He /She Be Eligible for PMAY Subsidy?

Yes, if an applicant only owns a plot, shop, factory or commercial establishment but doesn’t own a pucca house, he or she will be eligible for PMAY subsidy.

Is it mandatory to have women ownership?

Women Ownership is not mandatory for all. Please refer to the table below.

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16 Comments

  1. Darshan
    November 28, 2018
    Reply

    I have applied for Pradhan Mantri Awas Yojana for home loan taken from Axis Bank in last Nov-17. However there is no reply from axis bank.
    Now what to do ? What is the process ? can any body help me
    Darshan Shah – 9821707213

    • VOICE
      December 3, 2018
      Reply

      Hi Darshan,

      Please ask the bank in written from where you have applied

  2. AMIT SINGH
    October 22, 2018
    Reply

    Sir, i have paid registration amount RS 25050 online at https://upavp.in/pmay/avadh-vihar-yojna/ in May 2018 its been 5 months but there is no update on website , please suggest how to get my money back.

    • VOICE
      November 13, 2018
      Reply

      Hi Sir, Please send a written complaint to their head office in this regards.

  3. Pradeep kumar
    August 3, 2018
    Reply

    I will be comment you because you are not gave the awas in any poor person .you gave olny reach man .so i hope you will be gave the awas only poor man.

  4. Ranjith Kumar
    August 3, 2018
    Reply

    how to track PMAY benifit – I don’t know whether they applied or not- They are claiming that they applied .

  5. Anand shandilya
    July 29, 2018
    Reply

    Sir sirf amiro par dhyan na de. Hum garib bhi aapki janta hai so please sir nispaksha hokar sari janta ke sath hum garibo par bhi dhyan de I request to our dear prime minister modi ji

  6. July 13, 2018
    Reply

    Sir appse yehi darkhas h ki aap ek Barr aake dekhe sir amiro Ko diye he sir o bhi unhe diye toh 1lak20hajar diye to the sir ap likin garibo Ko ni h sir me hamare Pradhan ji gram panchayat ji be amiro Ko is liye awass diye unhe 20000milta tha is liye amiro Ko diye h sir garibo Ko n

  7. July 13, 2018
    Reply

    Sir Mene to awas ke liye 3,baat form aaply kiya tha Lekin sir ham Haribo ke liye kuchh bhi or jo log ke pass ghar he unhe ghar Mila h Jin garibo ke pass nhi h unhe to jhopdi bhi nahi Mila h hamre payee Mukhyamantri Narendra Modi ji se tah Dil se namskar karte he ki hamre gram panchayat Pradhan ji h Allahabad karchhana dharwara karbalpur me sir ek tolet bhi nhi diye sir

  8. SATPUTE A B
    July 4, 2018
    Reply

    INDIA KE KON SE BANK NE AAJTAK GARIBO KO LOAN DIYA HAI, AGAR DIYA HAI TO SABHI BADE LOGO KO.KOI BHI BANK GARIB KO LOAN NAHI DETA KYU ? KOI BHI GARIB ADMI BANK KA PAISA NAHI DUBATA , CHUNA LAGATE BUS BADE LOG.

  9. sushma
    June 27, 2018
    Reply

    from where we can see the project under PMAY

  10. June 4, 2018
    Reply

    jo garib hai unhe to mila nahi aur amiro ko pahele mil gaya khan ka nya hai pradhan mantri ji

  11. Kesh shukla
    May 28, 2018
    Reply

    Ye ek bhut hi achhi yojana hai jiska labb janata ne liya aur ye desh ke etihash me pahli bar es prkar nispaksha rup se vitrit huyi aavas yojna hai

  12. Sunil
    May 26, 2018
    Reply

    I have one doubt regarding PMAY eligibility criteria. Following are the details, My family income is 6.10 lacs per annual. (As per PMAY criteria Carpet area of the house purchased should be less than 60 sq. mtrs. for income not exceeding RS 6 lacs p.a, 90 sq.mtrs. for income not exceeding 9 lacs p.a)
    Query- i am going to book new 2 BHK flat which total SQ.FT is 875 and total carpet area= 60.79( total carpet area includes Balcony area, terrace Carpet and dry terrace carpet). So my query is whether you are considering total carpet area or just carpet area which is 42.82 in my case(Excluded Balcony, terrace, dry terrace). (Eligibility for above 6 lac income-carpet area should less than 90 sq.mtrs. for income not exceeding 9 lacs p.a)
    Could you please tell me if i am fit in above criteria.
    If you are only considering carpet area that excludes terrace, balcony, dry terrace then it will never go above 60 sq.ft for 2 bhk flat. And no one can avail such PMAY yojana whose income above 6 lacs.

  13. Simmi
    February 18, 2018
    Reply

    if bank not fillup pradhanmantri awas yojna form?

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