Buying property isn’t as big a hassle for those with a good income. Yes, they might struggle with deciding which property is the right investment for them or fits their lifestyle, but that’s about it. This is why the government feels the need to assist those with lower incomes to buy a home.
Since the security of owning a house comes with a huge price tag, the government of India launched its Housing For All mission also known as Pradhan Mantri Awas Yojana (PMAY). Under this scheme, housing options are available to families that fall under four different income groups.
Although a lot of property developers have also started building projects catering to all or a few of these categories.
These groups are the Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG), and High-income Group (HIG). Any government scheme that provides housing to Indian citizens will be dependent on the category the citizen fits in economically.
Thus, understanding what these income categories stand for and what kinds of apartments are available to them is necessary to understand how you can benefit from government housing in India.
If you’re a resident of Delhi and have been for a little while, you will be more familiar with the LIG, MIG, ad HIG terminology than the rest of the country. However, since the DDA lottery system talks heavily about these types of residential units, you are bound to also be more misinformed about what these categories stand for.
In Delhi, the LIG, MIG, and HIG terms are used interchangeably with the BHK configuration of a house as well. Here, LIG is used to refer to 1 BHK apartment, LIG is used for 2BHK apartments, and HIG is used to refer to 3 BHK apartments. However, this is simply because the DDA flats in Delhi are found in this configuration for all these categories.
Let’s dive deeper into all these categories to better understand what they stand for and what types of flats or apartments are available to those that fall under these categories.
Economically Weaker Section (EWS)
The Economically Weaker Section or EWS category consists of families whose annual salary is less than Rs. 3 Lakhs. The EWS category receives protection in the form of reservations at various institutions by the Indian Government. This category does not include families that hold SC, ST, or OBC certification as they receive a different reservation percentage at the same institutions.
Families that fall under the EWS category are eligible to receive an interest subsidy on a home loan up to Rs 6 Lakh for a maximum loan tenure of 20 years. The house for an EWS family must also be no larger than 30 sq. mt. in size.
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Lower Income Group (LIG)
If the annual income of your family is from Rs. 3-6 Lakh p.a., you most likely qualify under the Lower Income Group (LIG) category. But, this income is the total income of the household and not of any individual member. The EWS category can sometimes be eligible to buy a residential property that falls under the LIG category.
Families that fall under the LIG category receive an interest rate subsidy of 6.50% for a tenure of 20 years. The subsidy is available only on a maximum of Rs. 6 Lakh of the loan amount. The unit size for a house under the LIG category is no more than 60 sq. mt.
Middle Income Group (MIG)
The Middle Income Group (MIG) is further subdivided into two categories based on the annual income of the household. The first category is MIG 1. The annual income of a household that falls under the MIG 1 category is Rs 6-12 Lakhs. The second sub-category under MIG is MIG 2. Families that are categorized as MIG 2 have an annual income of Rs. 12-18 Lakhs.
The interest rate subsidy available to the families that fall under the MIG 1 ad MIG 2 categories is as follows:
MIG 1: Interest rate subsidy of 4% on the maximum loan amount of Rs 9 Lakh for a loan tenure of 20 Years.
MIG 2: Interest rate subsidy of 3% on the maximum loan amount of Rs 12 Lakh for a loan tenure of 20 Years.
The maximum size for a residential unit to be considered MIG 1 or MIG 2 was 90 sq. mt. and 110 sq. mt. previously. This has recently been increased to 120 sq. mt. area for a MIG 1 house and 150 sq. mt. area for a MIG 2 house.
High-Income Group (HIG)
The High Income Group (HIG) category families are those that have an annual household income of more than Rs. 18 Lakhs. These families are considered to be financially more secure than any of the categories mentioned above.
Thus, families under the HIG category do not receive any significant interest rate subsidies.
How To Apply For PMAY housing under EWS, LIG, MIG, or HIG categories?
To apply to PMAY online, follow these simple steps:
Step 1: Log in to https://pmaymis.gov.in
Step 2: Once you are here, see the second Citizen Assessment tab in the top row. You will find a drop-down menu attached to this option.
Step 3: In the drop-down menu, select Apply Online and select the category you want to apply under.
Step 4: After making the previous selection, you will be asked to fill in your Aadhar Details. Do so and click check to confirm.
Step 5: Submit this, you will be redirected to the form with the details you need to complete in order to apply for a valid PMAY application. Once you have completed this form and clicked submit, you will have applied for the Pradhan Mantri Awas Yojana 2022-23.
Now that you know what the various income categories in India are, you must know one more thing before you’re ready to apply to any of the government’s housing schemes including the Pradhan Mantri Awas Yojana (PMAY).
For most housing schemes, individuals that already own a house will not be considered valid as an applicant no matter which income category they fit in. In most cases, if your immediate family member owns another property, your application for a home will be considered invalid.
If you still have questions regarding which category of household income you fit in as per the above list, feel free to ask us questions in the comments section.
Read More: How Does PMAY 2022-23 Make Real estate Investment More Accessible