- The government set up an eligibility criteria to avail PMAY benefits
- Only first time house buyers are entitled for the scheme
- Beneficiaries are to be divided into 3 segments based on their income
- Maximum housing carpet area to be eligible for PMAY revised in June 2018
Having set the deadline to provide a home to over 20 million people by 2022, the government has identified over 2,508 cities and towns across the 26 states in the country to build over 2 million houses. The government has also extended the Credit Linked Subsidy Scheme (CLSS) on home loans for properties belonging to the lower and middle income group.
However, the Ministry of Housing and Urban Property Alleviation has set the eligibility criteria a prospective applicant needs to meet in order to avail the benefits. So, here are the tips through which you can boost your eligibility for PMAY to avail a house or financial reinforcements under the PMAY scheme:
Be a First-time House Buyer
Since the PMAY scheme is primarily aimed at providing housing for all, understandably all those who already own a home or any of their family members own a home, are kept out of the benefits. The rule says, “the beneficiary family should not own a pucca house and should not have availed any central assistance under housing scheme from the Government of India.”
A beneficiary family is comprised of the husband, wife, and unmarried children. This means that if a married child is staying in a house owned by his parents, he can opt for the PMAY scheme provided that he is not earning and doesn’t own any other house.
Apply Under 3 Basic Components
PMAY benefits through CLSS can be availed by applicants under 3 basic categories:
- Lower Income Group (LIG) – People that fall under LIG category usually have an annual household income ranging between Rs.3-6 lakh. They can get an interest rate subsidy of 6.5% on home loans up to Rs.6 lakh with a maximum tenor of 15 years.
- Mid Income Group I – The MIG I segment comprises households having an annual income between Rs.6-12 lakh. They are entitled to an interest subsidy of 4% on a maximum home loan of Rs.9 lakh for a tenor of 20 years.
- Mid Income Group II – The MIG II category, comprising households with income between Rs. 12-18 lakh, entitles the applicants to avail a home loan up to Rs.12 lakh with an interest subsidy of 3%.
Take Note of the Carpet Area
In a major decision to boost affordable housing, the Ministry of Housing & Urban Affairs, has widened the scope of eligibility for claiming interest subsidy under the PMAY scheme. With effect from June 2018, the maximum carpet area to avail the CLSS benefits has been raised to 160 square metres for MIG-I and 200 square metres for MIG-II segment.
Emphasize Woman Ownership
In order to avail the subsidy under the CLSS initiative for EWS and LIG category, the house needs to be owned by a woman or jointly with her husband. However, if you have previously availed benefits under any of the housing schemes by the government, you will not be eligible for PMAY.
The CLSS for MIG segment has gained momentum in the last couple of quarters and the offtake has picked up significantly. According to the government data, an amount of Rs.736.79 crore has been disbursed to 35,204 beneficiaries under the MIG category.
Bolstered by the revolutionary movement, many lending institutions have come up with innovative plans with easy eligibility criteria to support the government’s initiative.