Due to the rising costs of property, owning a home remains a dream for many Indians. To make affordable housing a reality for everyone, the Indian Government introduced the Pradhan Mantri Awas Yojana (PMAY) back in 2015

What Is Pradhan Mantri Awas Yojana 2020?

The PM Awas Yojana 2020 or PMAY 2020 is a welfare scheme under which the Government of India aims to provide an interest subsidy on housing loans to the economically weaker sections of the society. Through the PMAY-U the Government intends to achieve its mission of “housing for all” in urban areas by 2022. 

PMAY Subsidy Benefit 

One of the most significant features of the PMAY scheme is the Pradhan Mantri Awas Yojana subsidy. This subsidy is provided through the Credit Linked Subsidy Scheme (CLSS), which is one of the four segments of the Pradhan Mantri Awas Yojana (PMAY-U). The beneficiaries include- Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle-Income Groups (MIG).

Under CLSS, the sections mentioned in the table below are given a Pradhan Mantri Awas Yojana subsidy on home loan interest rates. This home loan subsidy on the interest rates allows the urban poor to avail of housing finance at cheaper ROIs. The PM Awas Yojana makes female homeownership or co-ownership of the property a mandatory clause under the EWS and LIG categories, and an optional clause under the MIG-1 and MIG-2 categories. 

The eligible applicants can avail of PMAY subsidy benefit under the following guidelines.

Beneficiary Annual household income Maximum loan amount allowed for availing subsidy Interest rate  subsidy Maximum loan tenure (in years)
Economically Weaker Section (EWS) Up to Rs.3 lakhs Rs.6 lakhs 6.5% p.a. 20
Low Income Group (LIG) Rs.3 to 6 lakhs Rs.6 lakhs 6.5% p.a. 20
Middle Income Group 1 Rs.6 to 12 lakhs Rs.9 lakhs 4% p.a. 20
Middle Income Group 2 Rs. 12 to 18 lakhs Rs.12 lakhs 3% p.a. 20

Additional Read:- How to Complete your Dream of Owning a House Using PMA

PMAY Eligibility

  • The beneficiary’s annual household income should fall under any one of the categories mentioned above.
  • A beneficiary family should comprise of husband, wife, and unmarried sons or daughters.
  • The beneficiary or any other family member should not own any pucca house.
  • The beneficiary or their family members should not have already availed of central assistance under the PMAY scheme or any other housing scheme of the Government.
  • Married couples can apply for subsidy under individual or joint ownership of the property.

If you haven’t applied to the PMAY scheme yet, then you can apply for Pradhan Mantri Awas Yojana online. The PMAY online apply process is quite easy. You have to log onto the official PMAY website and click on the ‘Citizen Assessment’ button. Then enter your Aadhar card number, after which you will be directed to the Pradhan Mantri Awas Yojana form. Duly fill and submit the form. After completing the process, you will receive an application number to check if your name is enlisted on the PMAY list. 

Additional Read:- How Can You Reduce Your Home Loan EMI using PMAY

When looking for housing loans under PM Awas Yojana 2020, look no further than Tata Capital. We accept home loan applications under the PMAY scheme. Log on to www.tatacapital.com to check your Pradhan Mantri Awas Yojana eligibility. Once you meet the eligibility, apply for a loan with us and make the most of the Pradhan Mantri Awas Yojana 2020.

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