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What is The Affordable Housing Criteria to be Eligible?

What is The Affordable Housing Criteria to be Eligible?

The Government of India aims to realise its objective of affordable housing for all by 2022. If you are looking to avail of the Pradhan Mantri Awas Yojana (PMAY) benefits, read on to explore the key features and the eligibility criteria of the scheme in detail. 

PMAY Benefits and Key Features

The Pradhan Mantri Awas Yojana, the central government’s flagship housing project, provides affordable home loans at subsidised or reduced interest rates, extended loan tenures, eco-friendly home construction, additional financing benefits, and more to all income groups. These include the following categories:

  • Low Income Group (LIG): Families with a yearly household income between Rs. 3 and Rs. 6 lakhs
  • Economically Weaker Sections (EWS): Families with a yearly household income below Rs. 3 lakhs
  • Middle Income Group I (MIG I): Families with a yearly household income between Rs. 6 lakhs and Rs. 12 lakhs
  • Middle Income Group II (MIG II): Families with a yearly household income between Rs. 12 lakhs and Rs. 18 lakhs

The ambitious government-backed scheme offers a home loan subsidy of up to Rs. 2.67 lakhs to eligible applicants. You can use the funds to purchase or construct an affordable house. Under the Pradhan Mantri Awas Yojana (PMAY), developers use sustainable building technologies and environment-friendly construction materials to build houses.

Besides, the initiative has no limits on the loan amount that you can borrow. The scheme aims to encourage homeownership or co-ownership in female members of families. To this end, it provides preference to widows, salaried women, the differently-abled, transgender people, and senior citizens.

Also,read: What Are the Prominent Affordable Housing Schemes Available in India?

PMAY Eligibility Requirements

Here are the affordable housing eligibility criteria you must fulfil to avail of the scheme’s benefits.

Income eligibility limits (EWS, LIG, MIG)

As per your yearly household income, you must fall under any one of the four categories, EWS, LIG, MIG I, and MIG II.

Ownership restriction criteria

You or any other member of your family must not own a pucca house anywhere across the country.

Subsidies and central assistance rules

You or any other member of your family should not have availed of subsidy benefits under any other government housing schemes.

Gender ownership requirements

If you belong to the EWS and LIG categories, at least one female member of your family must have been appointed as the owner or co-owner of the prospective property.

Over to you

Are you eligible for the Pradhan Mantri Awas Yojana? Get in touch with Tata Capital to avail of cost-effective housing finance. Explore a wide range of home financing solutions and choose what works best for you!

At competitive interest rates starting from just 6.90%, you can get a loan amount as high as Rs. 5 crores. With us, you can provide minimal paperwork and expect speedy processing and disbursal of the loan amount. Moreover, you can opt for flexible EMI plans and extended loan tenures of up to 30 years.

Check out our home loan eligibility and apply for a loan today!

Also,read: Eligibility criteria for DDA housing scheme for EWS category

How to Check Your Affordable Housing Eligibility

To check your affordable housing eligibility under the Pradhan Mantri Awas Yojana (PMAY), the first step is to review the income criteria. The PMAY housing scheme qualification criteria vary based on several factors. For example, it targets different income groups: Economically Weaker Section (EWS) having annual income up to ₹3 lakh, Low Income Group (LIG) with income between ₹3–6 lakh, and Middle Income Groups (MIG-I and MIG-II) with incomes of ₹6–12 lakh and ₹12–18 lakh respectively.

Next, when conducting your PMAY eligibility check, ensure you meet the following conditions: you must not already own a pucca house anywhere in India, and you must be at least 18 years old. Priority is often given to women, senior citizens, and persons with disabilities.

Lastly, when you check eligibility for housing schemes, you will need ID and address-verification documents. These could include your Aadhaar, income certificate, caste certificate (if applicable), and proof of residence.

Remember to check affordable housing criteria and eligibility online through the official PMAY website for guidance.

Document Requirements for Affordable Housing Applications

When applying for affordable housing under the Pradhan Mantri Awas Yojana, certain documents are required. They are vital for housing scheme qualification and PMAY’s eligibility check. We break them down clearly below:

1. Identity proof: This includes your Aadhaar card (mandatory), and applicants can also provide their PAN card, voter ID, passport, or driving license.

2. Address proof: For affordable housing eligibility, address proof is mandatory. This could be your Aadhaar card, ration card, a recent utility bill (electricity, water, or gas), or your rental agreement.

3. Income proof: Income proof often varies depending on the applicant’s form of employment. For salaried applicants, you can provide salary slips for the last 3 months, your bank statements for the previous 6 months, Form 16, or the latest ITR. For self-employed applicants, you can provide your ITR for the past 2 to 3 years, business registration certificates, or bank statements for the previous 6 months.

4. Property documents: Lastly, applicants may be required to provide property documents. These include sales agreements, title deeds, NOCs from the society or builder, and approved building plans.

Remember to check eligibility for the housing scheme on the website of the Ministry of Housing and Urban Affairs!

Also,read: Rajiv Awas Yojana: Objective, Eligibility And Benefits

State-Specific Affordable Housing Schemes in India

In addition to PMAY, there are several state housing schemes in India. Below, we list some of the biggest regional housing programs:

PMAY state schemes

Delhi Development Authority Housing Scheme

The Delhi Development Authority introduced one of the biggest affordable housing schemes by the state on the 31st of December, 2021. Under this scheme, 18,335 flats were made available at highly discounted rates in areas such as Rohini, Dwarka, Sirasour, Narela, Jasola, and Jahangirpuri.

Tamil Nadu Housing Board Schemes

Apart from PMAY, state schemes, like those introduced by the Tamil Nadu Housing Board Scheme in 1961, provided affordable housing to growing urban populations. This scheme also included several subschemes, such as the Trichy or Thanjavur Housing Division.

NTR Housing Scheme

In 2016, the Government of Andhra Pradesh set up the NTR Housing Scheme. This scheme aimed to provide affordable housing in rural and urban areas of the state to those who needed it. It offered low-interest housing loans, facilitated affordable housing construction, and more.

Affordable Housing Loan Interest Rates & Benefits

Currently, affordable housing loan interest rates in India are around 6.5%. However, housing loan interest rates in India depend heavily on the financial profile of the borrower, as well as the lender’s policies.

Home loan subsidies have countless advantages. Some of PMAY’s loan benefits include:

  • Income-based division: PMAY offers interest subsidies based on annual household income.  For example, applicants earning up to ₹6 lakh can get a 6.5% subsidy on loans up to ₹6 lakh; those earning up to ₹12 lakh are eligible for a 4% subsidy on loans up to ₹9 lakh; and individuals earning up to ₹18 lakh can receive a 3% subsidy on loans up to ₹12 lakh.
  • Priority for specific groups: Senior citizens and persons with disabilities are given preference for ground-floor housing to improve accessibility.
  • Eco-friendly construction: PMAY incorporates sustainable construction technologies, reducing environmental impact.

Also,read: Difference between PMAY Gramin and PMAY Urban

PMAY Interest Subsidy Calculation Examples

Applicants can use PMAY’s official website and other online calculators to calculate PMAY benefits, PMAY subsidy EMI calculation, and PMAY interest subsidy calculation. Let’s take a look at affordable housing subsidy examples below!

The subsidies each applicant is offered vary based on their income level, loan amount, loan tenure, carpet area, and other criteria defined under PMAY guidelines and lending rules. For example, say your annual income is Rs. 9,00,000, your loan amount is Rs. 8,00,000, and your loan tenure is 72 months.

In this situation, your annual income would fall into the “Middle Income Group,” or MIG. This means your actual subsidy would be around 4%, totalling Rs. 1,01,163.

To calculate what interest and subsidies would apply to your home loan, remember to check the official PMAY website or other calculators online before finalising your loan decision carefully.

​

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FAQs

Who qualifies for affordable housing in India?

 

In India, those who are eligible for affordable housing include individuals and families from the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Groups (MIG). Who qualifies for affordable housing will also vary based on annual household income, property ownership status, age criteria, and compliance with specific scheme guidelines under PMAY.

What is the income limit for EWS category?

 

Generally, the income criteria for affordable housing for the Economically Weaker Section (EWS) households is  an annual income of up to ₹8 lakh. For EWS households who are eligible for low-income housing, applicants must also not own a pucca house anywhere in India and should meet other eligibility conditions.

How much carpet area is allowed for LIG houses?

 

The affordable housing limits for carpet area allowed under the PMAY scheme will differ based on several factors. Generally, for applicants from the Low Income Group (LIG) under PMAY, the maximum carpet area is 60 square metres. This limit helps keep housing affordable while maintaining basic living standards.

Can NRI apply for affordable housing schemes?

 

Yes, NRIs are permitted to apply for affordable housing schemes in India. However, like others who can buy affordable housing, they must meet the eligibility criteria. This includes certain income limits and non-ownership of a pucca house. However, NRIs are typically not eligible for PMAY subsidies and must comply with FEMA and housing authority regulations.

What documents are required for PMAY application?

 

For eligbility for affordable housing, applicants are required to submit ID proof, address proof, income proof, and more. These documents could include your Aadhaar (mandatory), bank statements, and property-related documents if applicable. Additionally, other documents, such as declarations of non-ownership, caste, disability, or minority certificates, may be required.

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