PMAY

All Your Most Asked Questions on PMAY

Having a home of one’s own is a dream that most Indians aspire to, but only a few are lucky to realise. In 2015, the Indian government introduced a pathbreaking initiative named the Pradhan Mantri Awas Yojana (PMAY) aimed at providing affordable housing in both urban and rural areas. With the encouraging tagline “Housing for All by 2022,” PMAY is meant to make home loans more affordable.

In a recent article in Moneycontrol, the Housing and Urban Affairs Ministry said that ‘under PMAY (U) so far, more than 51 lakh urban dwelling units have been sanctioned,’ which is an improvement from the number of houses built under the previous housing scheme. Clearly, PMAY is having an impact. But how does it work? And how will you know if you are eligible to avail of its benefits?

Mr Rajagopal is one of the many prospective homebuyers who was interested in the PMAY scheme. While he has some awareness of the PMAY scheme, he wrote to us that he needs more clarity. We address some of the most common questions he asked to help you assess your position as an applicant.

I am close to 50 years of age. Can I still apply?

Yes, you can. However, you must bear in mind that the loan needs to be repaid before you reach 70 years of age.

I earn approximately 16 Lakh per year. Am I eligible?

Yes, PMAY is targeted at three categories of people. The Middle Income Groups (MIG), Economically Weaker Sections (EWS), and Low Income Group (LIG). You would fall in the MIG II category.

How do I apply for PMAY?

You can easily apply for PMAY online. You will need your Aadhar number at hand for the first step. In the next step, you will be required to enter all the information regarding your family, income status, and other pertinent details. Follow this step-by-step guide for registering for PMAY online.

Assuming I have been approved for PMAY, can I apply for a loan from the bank of my choice now?

You can apply for a loan from any bank provided it is approved to carry out the PMAY scheme.

What type of housing do I get?

Many well-known builders have tied up with the government to offer houses under the PMAY scheme, which is available in 35 states across India. You can check the property dimensions that you are eligible for, and apply accordingly. For example, since you fall under the MIG II category, you will be eligible for houses with a carpet area of up to 2,153 sq ft.

Do I need to buy a fully constructed house mandatorily?

No, you can either build a newly constructed house from different builders or construct your own.

But what if I have my own plot of land and I want to construct my house there?

The terms of PMAY only state that you are rendered ineligible if you own a house already. Therefore, you are still eligible to construct your house on your plot of land with the help of PMAY.

Do I get any tax benefits?

Yes, of course, you do get tax benefits on both the interest as well as principal aspects of the loan.

My daughter too is thinking of applying for PMAY? Does she get any special benefits?

PMAY encourages home ownership among women. It’s guidelines indicate that women borrowers get special concessions and interest rates.

With the recent easing of the carpet area eligibility for all the categories, PMAY is more attractive than ever before to prospective homebuyers. It’s time you get your dream home. The hassle-free way.

 

7 Comments

    1. Hello Dixitkumar, please ask your bank for the assessment id. Once you have it, kindly follow the process mentioned in the blog.

  1. Hi Joshi,

    My query is regarding PMAY subsidy amount,

    I work for an MNC company and my current annual income is 6,29,265. Also me and my wife don’t hold any house in our name. Further, In January, 2020, my company deputed me to Canada as a part of an onsite project and I was in Canada for 7.5 months and returned to India on 30th August, In Canada, my salary earning after tax deduction is 15 lakhs INR(this amount will not appear in my FORM16 as it is Canada salary and no India tax on remittance(CAD to INR).

    After coming back from Canada, we planned our first home so approached one builder and took an agreement to purchase at 35 Lakhs. We approached Canfin for a home loan for 28 lakhs(80% of 35 lakhs), they accepted our application. However, they called me and told me that I am not eligible for PMAY as my income is more than 18 lakhs but my onsite income is temporary and my company issued a salary letter stating that my salary is 6.29 LPA only. Also the bank manager told me that I need to wait and apply for a home loan after 6 months If I need PMAY but my builder won’t wait that long.
    Kindly provide your expert opinion on this. Thank you so much.

    Regards,
    Ranjit

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