Home Finance Factors That You Should Know About PMAY Scheme

Do you live in a rural area of India and want to avail of the Pradhan Mantri Awas Yojana to enjoy Home Loan interest rate subsidy on booking a home?

You need not worry as the Government of India has rolled out the Pradhan Mantri Awas Yojana Gramin for helping rural people to realize their home dreams.

What is Pradhan Mantri Awas Yojana Gramin?

The Pradhan Mantri Awas Yojana Gramin (PMAY-G) is a welfare initiate kicked off by the Central Government of India. The mission of the Pradhan Mantri Awas Yojana Gramin is to provide low-cost home solutions to people in the rural sections of India.

The Pradhan Mantri Awas Yojana Gramin is in sync with the earlier launched ‘Housing for All’ by 2022 plan.

The Pradhan Mantri Awas Yojana Gramin has changed the number of houses to be constructed under the plan as it has gone to 1 crore by the year 2022.

Home Loan subsidy under the Pradhan Mantri Awas Yojana Gramin

Anyone applying for a Home Loan under the Pradhan Mantri Awas Yojana Gramin scheme qualifies for a rebate of 3% on the Home Loan interest rate on loans up to Rs.2 lakh.

People even applying for a housing loan for renovating or upgrading their existing houses or for building a new home in the rural areas are also to get the interest rebate.

What is the eligibility for Pradhan Mantri Awas Yojana Gramin plan?

The following rural groups of people are eligible to apply for the PMAY-G

✓      Scheduled Tribes (ST) and Scheduled Castes (SC)

✓      Bonded labours who are no longer bonded and are free

✓      BPL (Below Poverty Line) households such as minorities and SC/ST

✓      Next-of-kin or widow to paramilitary forces/defense individuals killed in action. This is seen irrespective of the income criteria

✓      Ex-servicemen

✓      Any family applying for the plan should comprise of the husband, wife and unmarried children

✓      The family owning a pucca house are not eligible

✓      The applicant or the family must belong to the Below Poverty Line (BPL), Lower Income Group (LIG) and Economically Weaker Section (EWS)

✓      Applicant’s family income should be in the range of Rs.3 lakh and Rs.6 lakh per year

✓      Any Home Loan amount exceeding Rs.6 lakh will be treated out of the scheme and the Home Loan will be available for them at regular market prices

Also Read: How to Check Eligible for Pradhan Mantri Awas Yojana?

Documents required for the Pradhan Mantri Awas Yojana Gramin scheme

One needs to furnish an exclusive list of documents to apply and qualify for the Pradhan Mantri Awas Yojana Gramin scheme:

✓      Duly filed Pradhan Mantri Awas Yojana Gramin scheme application form

✓      Proof of income

✓      Group certificate – Ethnic

✓      Voter ID, PAN Card, Aadhaar Card, Driving License as ID proofs

✓      In case income is below taxable limit, income certificate will be required

✓      Proof of address

✓      Salary Slips/certificates

✓      Last 6 months bank account statement

✓      Form 16

✓      Income Tax Returns

✓      In case of having a business, business’ financial statement

✓      Cost of construction claiming certificate

✓      Affidavit claiming not possessing a pucca house

✓      Advance payment receipt made to the builder if any

✓      Property allocation letter

✓      Housing society NOC

The Bottom Line

Living in a rural area need not devoid of you of realizing a home dream using a Home Loan at a lower interest with the help of the Pradhan Mantri Awas Yojana Gramin plan. You can now assess your condition and then apply online for the loan under the PMAY – G scheme.