Owning a house in India is considered as sign of security and prosperity. More and more Indian are buying or building their own houses every day. But as per 2011 census, 13.4%* of Indian population does not own their own house. Thus to help the urban poor population to their own house, government of India came up with ‘Pradhan Mantri Awas Yojana’ in June 2015.
The scheme is further divided into four parts:
In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation
Credit Linked Subsidy Scheme
Affordable Housing in Partnership
Subsidy for beneficiary-led individual house construction/enhancement.
The eligibility criteria to get a home loan under ‘Pradhan Mantri Awas Yojana’ are very specific yet clear. The loan is given by the lenders only after you fill the full criteria. There is no negotiation when it comes to these eligibility criteria. The criteria differ as per the income group and other distinctive features of the applicant.
Economically Weaker Section (EWS):
The people whose income is under Rs. 3 lakh* per year are considered as economically weaker section (EWS). To get benefits of Pradhan Mantri Awas Yojana, one has to show the proof that they do belong to the EWS category. People from this category avail loan from Rs. 3 lakh* to Rs. 10 lakh*.
Low Income Group (LIG):
Those who have an annual income between Rs. 3 lakh* to Rs. 6 lakh* per month are considered under the low income group (LIG). To get benefits of Pradhan Mantri Awas Yojana, one has to show the proof that they do belong to the LIG category. People from this category avail loan from Rs. 3 lakh* to Rs. 10 lakh*.
Medium Income Group 1 (MIG 1):
People in this category have annual income of Rs. 12 lakh*. They are entitled to take a loan up to Rs. 9 lakh* under this scheme for maximum 20 year* tenure. They can avail an interest rate of 4%* with EMI costing around Rs. 3000* to Rs. 5000* per month.
Medium Income Group 2 (MIG 2):
People who have an annual income ranging between Rs. 12 lakh* to Rs. 18 lakh* come under this category. They can avail loan up to Rs. 12 lakh* for tenure of 20 years*. They can avail loan under Pradhan Mantri Awas Yojana for 150 square meter* carpet area with 3%* subsidy on interest rate.
People who belong to minority groups in India come under this category. These include transgender, SC, ST and OBC. They have to provide cast and income proof to avail loan under Pradhan Mantri Awas Yojana.
Women get special benefits when it comes to the Pradhan Mantri Awas Yojana. They are named as beneficiaries in loan applications. Women from economically weaker section (EWS), low income group (LIG), medium income group 1 (MIG 1), medium income group 2 (MIG 2) can apply for a home loan under Pradhan Mantri Awas Yojana.
Generic Eligibility Criteria:
The applicant and his/her family should have Adhaar card
The applicant should not have a pucca (well built) house in any part of India
The applicant’s family should only comprise of husband, wife and unmarried children.
The applicant or his/her family should not have availed any government housing benefits in the past.