How To Check If You Are Eligible For PMAY Subsidy

With India’s growing population and rising property rates, owning a house is still a coveted dream for many. Thus, to meet the housing needs of people, the Indian government introduced the Pradhan Mantri Awas Yojana (PMAY) in 2015. This affordable housing scheme aims to provide housing units with basic infrastructure and sanitation in rural and urban areas.

To benefit from the scheme, you can avail of a loan at a subsidised home loan interest rate under the PMAY Credit Linked Subsidy Scheme (CLSS).

So, how can you check if you are eligible for this subsidy? Read on to find out.

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Eligibility criteria for PMAY subsidy

If you wish to apply for the PMAY subsidy, you must meet the following criteria along with the home loan eligibility terms of your chosen lender.

You or any members in your household must not own a ‘pucca’ house anywhere across India.
Your annual household income must fall within any of the four beneficiary categories.
You and your family members must not have availed central assistance under any other housing scheme.
The carpet area of your chosen property must meet the specifications prescribed for the respective category.

Documentation required for PMAY subsidy

The next step is to have the following documents ready along with your home loan application:

Identity Proof documents: Aadhar /PAN Card/Driving License/Voters’ ID
Copy of Address Proof: Property Registration documents/Bank Statements/ Property Tax Receipt/Voter’s ID
Age Proof documents: copy of Driving License/Passport / Birth Certificate/Life Insurance Policy/ PAN Card/School Leaving Certificate
Income Proof documents: Copy of bank statements from your Salary account for the last six months
Salary Proof documents (for each earning member of the family): Appointment Letter/Copy of Salary slips for the last 3 months/ Certified true copy of Form 16/Yearly Increment Letter
An affidavit cum Declaration proving your family does not own any ‘pucca’ house
Declaration of property under construction (if applicable):
Valuation Certificate for the property you intend to purchase
Construction Agreement with the builder
Receipt of the advance payment for the property you intend to buy
Existing loan details through bank statements
Processing fee cheque: To be issued from your salary account if you’re a salaried individual and the business account if you’re self-employed.
NOC from any housing society or a competent authority

Once your paperwork and PMAY application are ready, you can apply for a housing loan. Borrow from a lender that accepts PMAY applications and avail of the subsidy on your home loan EMI rate. You can search online for financial institutions that are affiliated with the PMAY scheme.

Moreover, you can also use a home loan EMI calculator to calculate your projected loan EMIs and plan your finances accordingly.

The bottom line

With the help of Pradhan Mantri Awas Yojana, you can avail of affordable housing finance and become a proud homeowner. It’s an initiative that supports the housing dreams of countless people in India. To know more, log on to the PMAY website and fill out the Pradhan Mantri Awas Yojana form.