To make housing more affordable for first-time buyers, the Government of India launched Pradhan Mantri Awas Yojana (PMAY) in 2015. Initiated by Prime Minister Narendra Modi, the main purpose of the scheme is to construct two crore homes for people belonging to low-income families (LIG), middle-income groups (MIG), and economically weaker sections (EWS). PMAY plays an important role in helping people realize their dream of owning their first home.

Depending on the region an applicant resides in, the scheme is divided into PMAY-U (Urban) and PMAY-G (Gramin).

PMAY-U (URBAN)

Covering around 4,331 cities and towns, PMAY-Urban aims to address housing shortage among the EWS/LIG and MIG categories including slum dwellers in urban areas, by ensuring a pucca house to everyone eligible. As per the Union Housing and Urban Affairs Ministry, the Indian government has approved the construction of 1.68 lakh houses under the PMAY-Urban Scheme. The main purpose of the scheme is rehabilitation of slum dwellers in collaboration with private construction developers and affordable housing under the public-private partnership (PPP) model.

PMAY-G (GRAMIN)

Previously known as Indira Awas Yojana, the scheme was renamed PMAY-Gramin in March 2016. Operated by the Ministry of Rural Development, it aims at making housing affordable in rural parts of India, except Chandigarh and Delhi. People with no houses or kutcha houses can get financial help under this scheme to construct pucca houses. Those living in plains can get up to Rs 1.2 lakh. For those in hilly areas, regions in the Integrated Action Plan (IAP) for selected tribal and backward districts, difficult areas, and north-eastern parts of the country, an assistance of Rs 1.3 lakh is available

Who can apply for the PMAY scheme?

Anyone who doesn’t own a pucca house is eligible to avail the scheme. One of the main conditions is that the beneficiary and their immediate family should not have availed any central assistance under any housing scheme from the Government of India.

You are eligible for a loan under PMAY, if:

• This is the first pucca house in your name or the name of any of your immediate family members. The family includes the applicant’s wife, husband, unmarried son, or unmarried daughter.
• You have not benefited from any of the other housing schemes of the government.
• You are not older than 70 years at the end of the repayment period.
• The property location is under the scope of the scheme.

How are beneficiaries classified?

Families belonging to the economically weaker sections (EWS), low-income groups (LIGs), and middle-income groups (MIGs) are classified as beneficiaries under the PMAY-U scheme. The classification is done based on the annual income of the family.

• Households with an annual income up to Rs 3 lakh fall under the EWS category
• Households with an annual income between Rs 3 lakh to Rs 6 lakh belong to the LIG category
• Households with an annual income between Rs 6 lakh and Rs 12 lakh fall under MIG-I
• Households with an annual income between Rs 12 lakh and Rs 18 lakh fall under MIG-II

What is Credit Linked Subsidy Scheme (CLSS)?

Credit Linked Subsidy Scheme (CLSS) is a component of the Pradhan Mantri Awas Yojana under which a beneficiary can avail concession on interest rates. An eligible beneficiary from the economically weaker section (EWS), low-income group (LIG), middle-income group (MIG-1), and (MIG-2) can receive home loans for construction or acquisition at much lower or subsidized interest rates. Scheme beneficiaries are eligible for interest subsidy if they want a loan to buy or construct a new house or even want to add rooms, kitchen, or washrooms to their existing houses.

The government, under PMAY-CLSS, gives an interest subsidy of 6.5%, 4%, and 3% on loan amounts of Rs 6 lakh, Rs 9 lakh, and Rs 12 lakh respectively. If you are eligible, do keep the following in mind:

• The interest subsidy is calculated for a period of up to 20 years.
• The loan amount on which you receive the credit-linked subsidy depends on your family income.
• It is available for the first property you purchase.
• The applicant(s) must be from the immediate family: this includes you, your spouse, and unmarried children only.
• Priority is given if the applicant is a woman and sole breadwinner of the family.
• It is mandatory to have a woman co-owner under the EWS and LIG categories for the purchase of a new house.
  

How to apply for PMAY?

To apply and get a loan with PMAY subsidy, get in touch with a loan provider approved under this scheme, like DMI Housing Finance. An applicant is required to submit a declaration form. The lender then forwards the application to the National Housing Bank (NHB). Once the application is approved by the NHB, the subsidy amount is directly deposited in your home loan account.

Buying your first home is a special event. To ensure that the financial requirements are not a burden, you can benefit from the Pradhan Mantri Awas Yojana. Get in touch with us to discuss the scheme, your eligibility, and the options available. Visit our customer portal for faster approvals, tracking your loan application, checking eligibility, managing your loan account, and accessing multiple other benefits.

You can also avail attractive plot purchase, home construction, home extension, and home renovation loans from DMI Housing Finance. If you already own property and are considering applying for a loan against it, DMI Housing Finance also offers Loan Against Property.

You can either walk into any of the DMI Housing Finance branches or apply for the best interest rates loan through our online customer portal. To find the branch closest to you, use our branch locator.

For queries about any DMI services, you can contact our customer support at 1800 121 4214. For a new home loan, please give a missed call on +919772027704 to receive a callback. You can also write to us at customercare@dmihousingfinance.in

Apply online to get a PMAY subsidy on a home loan and let DMI Housing Finance help you make your dream home a reality.