All about PMAY: How does it work, eligibility and subsidy available

Here we break down important details like who all can apply, how much the subsidy in rupee terms is and how the subsidy impacts the loan amount.

If you are looking to own a home of your own, under the Pradhan Mantri Awas Yojana (Urban), PMAY (U) scheme, here are few important things to consider about the PMAY scheme, even while you arrange the amount for down payment, decide the location, builder and the home loan lender.

The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) to be called CLSS for MIG I and MIG II, which was initially approved for implementation for the year 2017 has been extended up to

Let's see who all are eligible for the MIG category, who all within a family can apply, how much is the subsidy in rupee terms and how does the subsidy impact the loan amount.

The middle-income earners
The new category MIG, introduced recently, will further comprise of two slabs. The Middle Income Group (MIG) - I will comprise of households having an annual income between Rs.6,00,001 up to Rs.12,00,000.

And, the Middle Income Group (MIG) - II will comprise of households having an annual income between Rs.12, 00,001 up to Rs.18, 00,000. So, effectively anyone earning between Rs 6 lakh and Rs 18 lakh per annum can avail the benefits of subsidized loans provided other conditions are met.

PMAY (U) : Features and benefits

Who are all eligible?
The scheme is primarily aimed at providing housing for all. Therefore, understandably, all those who already own a home or any of their family member own a home, are kept out of the benefits of PMAY.

The rule says, "The beneficiary family should not own a pucca house and the beneficiary family should not have availed of central assistance under any housing scheme from Government of India." A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters. To avoid duplication, beneficiary family members have to provide their Aadhaar numbers while applying for the loan.

But, as per the guidelines, "An adult earning member (irrespective of marital status) can be treated as a separate household, provided that he/she does not own a pucca (an all weather dwelling unit) house in his / her name in any part of India."

So, even if children (married or unmarried) are staying with their parents in a house owned by the parents (or on rent, in the same or another city), they can opt for PMAY provided they are earning and don't own any other home.

For a married couple living on rent and even if their parents own a home, will anyhow is treated as a separate household. However, if they wish to avail PMAY benefits, they will be eligible for a single house, bought by either of the spouses or both together in joint ownership.

Subsidy
In the MIG - I category, individuals will get 4 per cent interest subsidy on a loan amount up to Rs 9 lakh, and in the MIG - II slab category individuals will get a 3 percent subsidy on a loan amount up to Rs 12 lakh. If one needs an additional loan, the lender will provide it but the additional loans beyond the subsidised loan amount will be at a non-subsidised rate.

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