Pradhan Mantri Awas Yojana (PMAY) is an affordable housing initiative launched by the government to provide financial assistance to home loan applicants. To avail the benefit of Pradhan Mantri Awas Yojana, an applicant must meet its eligibility requirements and submit the necessary documents. Read on to know the documents required to apply for PMAY.
To reduce the financial burden of purchasing a house, the government launched Pradhan Mantri Awas Yojana in 2015. This scheme aims to provide affordable housing to people living in urban areas, especially those belonging to the lower-income groups.
If you want to apply for PMAY, you need to meet its eligibility requirements and submit some necessary documents.
Eligibility Requirement to Apply for PMAY
To ensure that the citizens get maximum benefits from the PMAY scheme, the government has categorised the beneficiaries into four groups based on their income. The interest subsidy differs based on the income group you belong to. The following table explains the interest rate subsidy applicable to applicants from different income groups.
|Category||Annual Household Income||Interest Subsidy||Maximum Loan Tenure||Maximum Carpet Area|
|Economically Weaker Section (EWS)||Up to Rs. 3 Lakhs||6.5%||20 Years||60 Sq. Mt.|
|Low Income Group (LIG)||Up to Rs. 6 Lakhs||6.5%||20 Years||60 Sq. Mt.|
|Middle Income Group I (MIG I)||Up to Rs. 12 Lakhs||4%||20 Years||160 Sq. Mt.|
|Middle Income Group II (MIG II)||Up to Rs. 18 Lakhs||3%||20 Years||200 Sq. Mt.|
Documents Required for Salaried People
The documentation process for a home loan differs from lender to lender. But, generally, the lenders require the applicants to submit the following documents.
Application form (duly filled with relevant details and signed)
Identity Proof (an applicant can submit any one of the papers)
- Aadhaar card
- Valid passport
- Photo credit card
- Driving license
- ID card provided by the government
- A letter issued by a public servant or public authority that verifies the identity of the applicant
Address Proof (an applicant can submit any one of the documents)
- Rent agreement on stamp paper
- Copy of utility bills
- Bank account statement that verifies the applicant’s address
- Aadhaar card
- Valid passport
- Life insurance policy documents
- Salary slips
- Bank account statement that verifies the salary
- Copy of agreement to sell
- Copy of buyer agreement or allotment letter (if applicable)
- Copy of complete chain documents of the property
- Copy of down payment made to the developer/builder
Documents Required for Self-Employed People
The documents required for a self-employed person are different. However, the necessary documents for identity proof, address proof, and property documents are the same for salaried and self-employed people.
Address proof of the business (an applicant can submit any one of the documents)
- Shop and Establishment Certificate
- Trade License Certificate
- VAT/PAN card/Sales Tax Certificate
- SSI Registration Certificate
- Factory Registration Certificate
- Copy of balance sheet and profit and loss account (Duly audited by a qualified CA)
- Current account statements of the business and savings account statements of the business owner
Why PMAY is Beneficial
The interest subsidy available under the PMAY can help you reduce your interest payment and make the home loan more affordable.