Buying a home under PMAY (Eligibility, How to apply, Documents, Credit Linked Subsidy Scheme)
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Buying a home is a dream for many. It is one of the
most significant investments that one makes in their lifetime. However, it
takes work for most people to buy a home due to financial constraints. The Government
of India launched the Pradhan Mantri Awas Yojana (PMAY) to make homeownership
affordable.
This blog will discuss everything you need to know
about buying a home under PMAY.
What is PMAY?
The Pradhan Mantri Awas Yojana (PMAY) was launched
by the Government of India in 2015 to provide affordable housing to all. The
scheme offers financial assistance to eligible beneficiaries to construct or
purchase a house.
Eligibility criteria for PMAY
To be eligible for PMAY, the applicant must meet
the following criteria:
- The
applicant should be a citizen of India.
- The
applicant should not own a pucca house in their name or the name of any
member of their family in any part of India.
- The
applicant's annual household income should be within the range of Rs. 3
lakhs to Rs. 18 lakhs.
- The
beneficiary should be a female member of the family, or the ownership of
the house should be in the name of a female family member.
How to apply for PMAY?
- The
application process for PMAY is simple and can be done online. Follow the
steps below to apply for PMAY:
- Visit
the official website of PMAY - https://pmaymis.gov.in/
- Click
on "Citizen Assessment" under the "Menu" tab.
- Enter
your Aadhaar number and click on "Check Aadhaar".
- Once
your Aadhaar is verified, fill in the personal and income details of the
applicant.
- Upload
the necessary documents, including a recent photograph, signature, and
identity proof.
- After
filling in all the details, click "Save" and submit your
application.
Documents required for PMAY
To apply for PMAY, these documents are required:
- Aadhaar
card
- PAN
card
- Income
proof (Form 16, Salary slip, ITR, etc.)
- Address
proof (Aadhaar, Voter ID, Driving License, etc.)
- Bank
account details
- Passport
size photograph
- Signature
proof
- Credit
Linked Subsidy Scheme (CLSS)
Under PMAY, the Credit Linked Subsidy Scheme (CLSS)
is a scheme that provides interest subsidies on home loans. The scheme aims to
make housing more affordable for economically weaker sections and low-income
groups. The loans for purchasing or constructing a house.
The subsidy is provided based on the income
category of the applicant. The table below shows the subsidy available under
CLSS:
Income Category of the Applicant
Loan amount eligible for subsidy
Interest subsidy
Economically Weaker Section (EWS)
- Up
to Rs. 6 lakh
- 6.5%
Low Income Group (LIG)
- Up
to Rs. 6 lakh
- 6.5%
Middle Income Group I (MIG I)
- Up
to Rs. 9 lakh
- 4%
Middle Income Group II (MIG II)
- Up
to Rs. 12 lakh
- 3%
Note: The interest
subsidy is provided for a maximum loan tenure of 20 years or the loan term,
whichever is lower.
Conclusion
The Pradhan Mantri Awas Yojana (PMAY) scheme aims
to provide affordable housing to all. The eligibility criteria are simple, and
the application process is easy. With the Credit Linked Subsidy Scheme (CLSS),
the interest subsidy makes housing more affordable for economically weaker
sections and low-income groups. By providing a subsidy on home loans, PMAY
encourages home ownership and helps fulfil the dreams of many.
It is important to note that buying a home is a
significant financial decision, and one should carefully consider all aspects
before purchasing. PMAY provides financial assistance to eligible
beneficiaries, but ensuring that the house purchased is within one's means and
can be comfortably repaid over the loan tenure is still essential.
In conclusion, PMAY is an excellent initiative by the Government of India to make housing affordable. With its easy application process, simple eligibility criteria, and the Credit Linked Subsidy Scheme, PMAY encourages home ownership and helps fulfil many dreams of owning a house.