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Home Loan Starting 6.75%*

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Pradhan Mantri Awas Yojana Benefits

PMAY Scheme Benefits

Pradhan Mantri Awas Yojana is a social welfare initiative launched by the Government of India in June 2015. It is a credit-linked subsidy scheme (CLSS) that aims to construct 2 crore pucca houses with basic amenities for the economically weaker sections of rural and urban India. There are several Pradhan Mantri Awas Yojana benefits that applicants can avail if they qualify for it.

For instance, under PMAY benefits those applying for a loan under this scheme can leverage a reduced GST interest rate of 8%, compared to 12%.

Check out all the benefits of Pradhan Mantri Awas Yojana and make an informed choice before going forward with the application.

Key benefits of PMAY Scheme

Some of the primary advantages of this scheme are as follows -

  • Affordable loan subsidy

The Pradhan Mantri Awas Yojana is a subsidy-based housing scheme with two segments based on the area – PMAY-Urban and PMAY-Gramin. However, it is applicable only to those belonging to economically weaker sections (EWS), lower-income groups (LIG) and middle-income groups (MIG). The eligible loan subsidy and annual income range for each section are stated below:

Section Annual Income Range Eligible Subsidy
EWS Up to Rs.3 lakh 6.5%
LIG Rs.3 lakh-Rs.6 lakh 6.5%
MIG-I Rs.6 lakh-Rs.12 lakh 4%
MIG-II Rs.12 lakh-Rs.18 lakh 3%

 

  • Specific carpet area

Another key pointer in the PMAY benefits list is a specific home carpet area. Although the area of the house will be different for each category, one must carefully consider the carpet area. For instance, the carpet area is 90 square metres for MIG-I and 110 square metres for MIG-II. Such well-defined parameters make affordable housing schemes accessible to all beneficiaries.

  • Housing scheme for all strata of the society

Construction of homes under the PMAY scheme is already underway and has been successfully implemented in several states, including Maharashtra, Tamil Nadu, West Bengal, etc. In 2020, the Union Housing and Urban Affairs Ministry approved the construction of 10.28 lakh houses, furthering the Pradhan Mantri Awas Yojana benefits, and taking the total number of sanctioned houses to 1.06 crore.

  • Pradhan Mantri Awas Yojana tax benefits

The Government of India decided to reduce GST from 12% to 8% on all home loans applicable under the PMAY scheme.

  • Advantages of PMAY-U

Compiled below are the different features and Awas Yojana benefits under PMAY-U.

Features MIG-I MIG-II
Interest rate subsidy 4% 3%
Dwelling unit carpet area (maximum) 160 square metres 200 square metres
Interest rate subsidy amount (maximum) Rs.2.35 lakh Rs.2.35 lakh
Maximum home loan amount Rs.9 lakh Rs.12 lakh
Tenure 20 years 20 years
Discount rate for interest subsidy NPV (net present value) 9% 9%

 

The various features and perks of PMAY-G are tabulated below.

Features EWS LIG
Interest rate subsidy 6.5% 6.5%
Dwelling unit carpet area (maximum) 30 square metres 60 square metres
Interest rate subsidy amount (maximum) Rs.2.67 lakh Rs.2.67 lakh
Maximum home loan amount Rs.6 lakh Rs.6 lakh
Tenure 20 years 20 years
Discount rate for interest subsidy NPV (net present value) 9% 9%

 

After becoming familiar with the different benefits of the PMAY scheme, know how to streamline the application process and avail the perks. Follow the steps mentioned below to apply for this scheme -

  • Visit the official PMAY website and click on the “Citizen Assessment” tab from the “Menu” option.
  • Next, enter the Aadhaar number, and fill up the application page.
  • Finally, download the saved and filled-out application and submit it at the concerned office along with all necessary documents.

Also, check the eligibility criteria before applying for the benefits of PMAY scheme to minimise the chances of rejection.

PMAY subsidy scheme for MIG I & II category is not extended by regulatory. Category wise scheme validity is mentioned below:

     1. EWS & LIG category is valid up to 31st March 2022

     2. MIG I & MIG II category was valid up to 31st March 2021