Technical details and numbers you need to know about Pradhan Mantri Awas Yojana

In June 2015, the Indian Prime Minister Narendra Modi announced a futuristic social security scheme which included a two-point agenda – eliminate slums from the urban areas of India and offer permanent housing to all and rehabilitate India’s image as a developed nation. Upholding these points, the Government launched the Pradhan Mantri Awas Yojana. Under this program, applicants of different classes can fulfil their dream of becoming homeowners.

Following are some technical details and numbers which you should be aware of concerning PMAY scheme –

The beneficiaries:

Those who can avail of the PMAY program benefits are categorised as –

• The Economically Weaker Section
• Lower-Income Group
• Middle-Income Group (MIG 1)
• Middle-Income Group 2 (MIG 2)

The technicalities:

When it comes to the PMAY technical details, the loan amount, subsidies on interest rates, and other such technicalities fall under them. They are as follows –

• Economically weaker section: If the individual earning a household income of less than INR 3 lakh, then you come to the EWS category. Such people are subject to a subsidy of 6.5 per cent yearly on the home loan interest rates and the tenure should be 20 years. The maximum loan amount they can avail of is INR 6 lakh. They could purchase a pucca house with a carpet area of 30 sq. mts. Applicants of the EWS class are eligible for maximum interest subsidy amount of INR 2.67 lakh and a discount rate according to NPV calculation up to 9 per cent.
• Lower-Income Group: If your household income is between INR 3 lakh to INR 6 lakh, then you fit the LIG category. Such individuals can avail of a subsidy of 6.5 per cent annually on the housing loan interest rates for tenure up to 20 years. The maximum loan amount they can apply for is INR 6 lakh for which they purchase a pucca house. The carpet area should be 60 sq. mts. Like EWS, LIG members are eligible for a maximum subsidy of INR 2.67 lakh and discount rate on interest subsidy up to 9 per cent.
• Middle-Income Group (MIG 1): The annual earnings of such households are between INR 6 lakh to INR 12 lakh. They can avail of the interest subsidy of 4 per cent on home loans and the maximum loan amount should be INR 9 lakh for which the pucca house carpet area is 160 sq. mts. The tenure, however, would be 20 years. Member of MIG 1 is eligible for maximum interest subsidy amount of INR 2.35 lakh and a discount rate on interest subsidy up to 9 per cent.
• Middle-Income Group 2: If you are household annual salary is between INR 12 lakh to INR 18 lakh, these individuals come under the MIG 2 category. The maximum loan amount you can avail for the purpose of home construction under the PMAY scheme is INR 9 lakh. The purchase sq. mts. should be 200. The interest subsidy for them is 4 per cent and comes with a tenure of 20 years. The maximum subsidy amount is INR 2.30 lakh and you receive a discount rate on the interest rate up to 9 per cent.