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How to Achieve your Dream of Owning a House Using PMAY Subsidy Scheme?

Updated: Oct 13, 2021
How to Achieve your Dream of Owning a House Using PMAY Subsidy Scheme?

The Indian economy is one of the fastest growing in the world with a burgeoning middle class population. But the dream of owning a house is not limited to one section of the population.

Even though the majority of the popular continue to live in rented accommodation, the price of properties is skyrocketing across the country. This establishes the demand for better housing across sections of society.

So, how do you achieve your dream of owning a house if you do not come from an economically affluent background?

PMAY Creating Affordable Housing Opportunities

To ensure that more and more citizens are able to own their dream house, the government of India had launched the PMAY or the Pradhan Mantri Awas Yojana scheme that helps people from economically weak sections or low income groups from both urban and rural areas to purchase their first home.

This is a noble initiative that aims to uplift citizens of the country who are not able to afford a home for themselves due to their economic condition. The scheme is currently applicable to the EWS or the Economically Weaker Section and the LIG or Low-Income Groups.

Key Features of the PMAY Yojana

The PM Awas Yojana has a goal of providing 20 million housing units by the end of 2022. Key features of the scheme include:

  • This ‘Housing for All’ scheme has two core pillars: PMAY-Urban and PMAY-Gramin. This has been defined to efficiently manage housing needs both in the rural and urban areas.
  • The PMAY subsidy has been capped at Rs. 2.67 lakhs, and the maximum subsidy one can get depends on their overall income level as well as other factors such as the value of the property and the interest rate.
  • Housing under the PMAY scheme gives preference to minority communities including Scheduled Class (SC) and Scheduled Tribes (ST).
  • The program comes with a mandatory clause for a female household member to be at least one of the owners of the property purchased under this scheme.
  • All housing units constructed under this program use eco-friendly materials.

Eligibility Criteria for PMAY

There is a minimum eligibility criterion that individuals must be able to meet in order to purchase housing under the PMAY scheme. The PMAY list outlines the following:

  • If you belong to the Economically Weaker Section (EWS) with an annual household income of less than Rs. 3 lakhs
  • If you belong to the Low-Income Group (LIG) with a yearly household income between Rs. 3 lakhs and 6 lakhs

You can only use the PMAY scheme if you belong to any of the above categories and do not own a brick home anywhere in India. Moreover, you will not be eligible to apply if you or your family have already availed of any other housing scheme offered by the Government of India in the past.

Documents Required to Apply for the PMAY Scheme

To apply for the PMAY program and own your dream home, you need to submit the following documentation.

  • Proof of identity which can be your Aadhaar card, PAN card, Voter’s ID or Driving license
  • Proof of Address which can be a copy of your utility bill, Voter’s ID, Passport or Landline bill
  • An affidavit cum declaration that provides evidence of the family not owning a brick house in any part of the country
  • Proof of annual household income along with salary slips or self-attested income certificate
  • In the case of under construction properties, a declaration for property under construction will be required to be provided by the real estate developer or builder along with a valuation certificate for the property that you intend to purchase. You also need to provide the advance payment receipt for the property that you have made to the builder.
  • NOC form from a competent authority like a housing society may be requested additionally

Applying for the PMAY Scheme

You can follow the given steps to apply for housing with the PMAY subsidy.

Assess Your Eligibility: Evaluate if you are at all eligible to apply for housing under the PMAY scheme. Check your economic category and the loan limit that is permissible under it.

Make your Loan Application: Chose your home loan lending partner to apply for the loan. Fill out the necessary application form and provide the required paperwork along with it.

Apply for the PMAY Subsidy: The Pradhan Mantri Awas Yojana form can be conveniently filled out online. Simply log on to the, download the form via the Citizen Assessment tab and furnish your Aadhaar information, personal and family background details.

Furnish Loan-Related Documents: You will be requested to enclose the PM Awas Yojana application form as you submit your other loan documents to the lending institution. Verification of the application is carried out prior to approving the PMAY loan.

Avail the Subsidy: If your loan gets approved, your lender will immediately forward your request for this scheme to the National Housing Board (NHB). The NHB will evaluate your request and upon approval, inform your lender who will then extend the benefits. However, the duration for this process can range anywhere between 4 to 6 months.

You are one step closer to owning your very first property with the assistance of the Pradhan Mantri Awas Yojana. At Grihashakti, we help you make the best of the PMAY scheme and supplement it with customized home loan offerings. Take advantage of the bouquet of benefits that we offer with our home loan products. Don’t forget to evaluate your personalized offer with SMFG Grihashakti today.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

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