Pradhan Mantri Awas Yojana was started to provide affordable housing options to every Indian who is willing a buy a home. There are multiple programmes under PMAY scheme that are meant to improve the real sector in India. Since its launch, many people are taken advantage of the project. However, people still have several confusions regarding this scheme. Here are the 10 most important FAQs about Pradhan Mantri Awas Yojana.

What is Pradhan Mantri Awas Yojana?  

PMAY is a programme concentrating on providing residential units at an affordable price to the economically weaker sections of the country. People that are willing to purchase a house for their own can get the benefit from this scheme.

What are the goals of PMAY?

PMAY is intended to provide housing for all by executing the following programmes,

  • Connecting private and public sectors for the development of the affordable housing sector
  • Slum rehabilitation
  • Providing credit linked subsidy to the weaker section of society so that they become able to afford houses
  • Improving the quality of houses offered under this scheme

What are the documents required to apply for PMAY?

Following are the documents required for PMAY,

  • Aadhaar card of every family member
  • Notarised affidavit

How to apply for PMAY?

Anyone can easily apply for PMAY by using their official website. On the website, the applicants need to provide their Aadhaar number to complete the first step of the application process. The next step is to provide information regarding income, pertinent details, etc. and submit the application.

What are the eligibility criteria for PMAY?

People falling in the following income groups can apply for PMAY. The only exception is that the applicant or any immediate family member should not own a house made of high-quality material, also called a pucca house. The applicant of the family should include applicant, spouse and unmarried children.

  1. Economically Weaker Section (EWS): Income up to Rs. 3 lakh
  2. Low Income Group (LIG): Income between Rs. 3 lakh to Rs. 6 lakh
  3. Middle Income Group 1 (MIG 1): Income between Rs. 6 lakh to Rs. 12 lakh
  4. Middle Income Group 2 (MIG 2): Income between Rs. 12 lakh to 18 lakh

What type of houses are provided under PMAY?

Many property developers are working with the government to provide affordable residential units under the PMAY scheme. The property dimensions are decided according to the income categories.

  • A person belonging to MIG I category can get a house having carpet area 120 sq mt.
  • A person belonging to the MIG II category can get a house having carpet area 110 sq mt.  

What is CLSS and how long an applicant needs to wait to obtain CLSS home loan approval?

The Credit Linked Subsidy Scheme or CLSS for Middle Income Group is known as CLSS for MIG I and II. Anyone in both categories can avail of the advantages provided by subsidised loans. The applicants are required to fit in eligibility criteria to avail this scheme.  

Can a person transfer the balance in order to obtain the benefits provided by home loan subsidy?

Although borrowers can transfer the loan balance to the new bank, they are not allowed to acquire subsidy on the home loan balance transfer.

What are the processing fees involved in PMAY scheme?

Applicants are not required to pay any kind of processing fees to get the benefit from PMAY scheme.

What are the Tax Benefits of PMAY scheme?

The applicants get tax benefits on the interest and principal of the home loan.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to [email protected].