Pradhan Mantri Awas Yojana, PMAY, is a housing scheme initiated by the Government of India in the year 2015.
The aim of the scheme is to promote easy and affordable housing by completing the construction of 2 crore houses by March 31, 2022.
PMAY scheme is specifically targeted towards the lower to lower-middle income groups, and is expected to reduce the cost of owning a home in rural and urban India. The mission of the scheme can be explained with the help of its four different components -
This article tries to cover all the important details pertaining to the PMAY scheme that you need to know, including the eligibility criteria and calculator.
Under PMAY, there are four different categories of beneficiaries -
Each family applying for the scheme will be categorized into one of these four beneficiary sections depending on their annual household income. The assistance they get will also be determined according to their categorization. Take a look at the table below for a better understanding of the eligibility criteria.
| Details | EWS | LIG | MIG 1 | MIG 2 |
|---|---|---|---|---|
| Total household income | Upto Rs. 3 lakh | Rs 3 lakh to Rs 6 lakh | Rs 6 lakh to Rs 12 lakh | Rs 12 lakh to Rs 18 lakh |
| Maximum loan tenure (in years) | 20 yrs. | 20 yrs. | 20 yrs. | 20 yrs. |
| Max loan amount allowed for subsidy | Rs. 6 lakh | Rs. 6 lakh | Rs 9 lakh | Rs 12 lakh |
| Max dwelling unit carpet area | 30 sq.m. | 60 sq.m. | 160 sq. m | 200 sq. m |
| Discount rate for net present value (NPV) calculation of interest subsidy (%) | 9% | 9% | 9% | 9% |
| Subsidy | 6.50% | 6.50% | 4.00 % | 3.00 % |
| Max. interest subsidy amount | Rs. 2,67,280 | Rs. 2,67,280 | Rs 2,35,068 | Rs 2,30,156 |
As you can see from the table above, each category of beneficiaries has a specified percentage of subsidy and a maximum amount to which the subsidy will be allowed. To further explain the calculation, here is an example.
If a family belongs to MIG-II category, which means their total household income falls between INR 12-18 lakhs, they would be eligible for a 3% subsidy rate. So, if they purchase a house of INR 75 lakhs, and INR 20 lakhs is paid upfront in down payment, they would have to pay approximately the remaining 50 lakhs through a home loan.
However, via PMAY, they would have to pay regular interest rates for only 38 lakhs, and the remaining 12 lakhs will be paid back at a subsidized rate. Out of the 12 lakhs, the family would also get a deduction of INR 2.3 lakhs on subsidy and would need to pay EMI only on 9.7 lakhs.
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*These calculators are only for illustrative purposes. These figures may or may not be applicable to your particular situation. Magicbricks will not be responsible for any loss or liability arising from the use of these calculators.