Since its launch in 2015, the PMAY scheme has gone through several changes. As a result, it is very common for a lot of people to have several questions about the scheme. Five of the most common questions about PMAY are answered in this post.

Prime Minister Narendra Modi launched PMAY, the biggest housing scheme, in 2015. The goal of the scheme is to make housing more affordable for people from EWS (Economically Weaker Section), LIGand MIG (Low income and Middle-Income Group). The scheme is an integral initiative by the government in its bid to achieve its eventual goal of ‘Housing for all by 2022’.

But since the launch of PMAY, several changes have been made to the scheme to make it more feasible for the beneficiaries. As a result, a lot of people wanting to benefit from it have a host of questions with regards to the scheme and its working. To make things easier for the interested beneficiaries, 5 of the most common questions about PMAY are answered below-

  1. 1. How are the EWS, LIG, and MIG beneficiaries classified?

The classification is as per the annual household income. If your annual household income is up to Rs. 6 lakhs, you will fall under the EWS or LIG category. The MIG group is divided into two different categories- MIG1 and MIG2. For MIG2, the annual household income can be up to Rs. 12 lakhs and the same for MIG2 is up to Rs. 18 lakhs.

  1. 2. What is CLSS under PMAY?

CLSS is the Credit-Linked Subsidy Scheme offered under PMAY. With the help of CLSS, the beneficiaries from all the different classes can get subsidised home loan. The savings can be up to 6.5% on the home loan interest rate for EWS and LIG. The savings for MIG1 can be up to 4%, and for MIG2, it can be up to 3% on home loan interest rate.

  1. 3. Who will assess my loan eligibility?

Lenders who are approved under PMAY will assess your home loan eligibility. While the eligibility requirements can slightly vary between lenders, most of them will go through your income documents, details of existing loans, bank statements, and income tax returns. If they find you eligible for the scheme, they will then pass your application to the NHB (National Housing Bank) for approval.

  1. 4. What is the area of the home that I can purchase under PMAY?

Beneficiaries from EWS and LIG can purchase housing units of up to 30 square metres. While the limit for MIG1 was 120 square metre and for MIG1, it was 150 square metres, the government has made some changes in July 2018. MIG1 can now benefit from the scheme even if they purchase units of up to 160 square metre. For MIG2, the carpet area has been increased to 200 square metres.

  1. 5. How will a beneficiary receive the interest subsidy?

If a beneficiary is approved under the Pradhan Mantri Awas Yojana, the interest subsidy will be paid to the beneficiary upfront in his/her loan account. The NHB will pay the amount to your lender who will then deposit the same into your loan account. The EMI for the home loan will then be readjusted.

To Conclude

With the property costs through the country flying through the roof, this initiative by the government is highly appreciated by the masses. Lakhs of people have already benefited from the scheme, and you too can save a significant amount if you are planning to buy your first pucca house and are eligible for the scheme.

Look for a lender that is approved under the scheme to know more and take a first step towards owning a house of your own.

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