PMAY was launched on 1st June 2015 as part of the Government of India’s ‘housing for all’ mission. The main objective of this scheme is to provide affordable housing for all members of the society belonging to both urban and rural India.
This scheme targets to build 20 million houses by the year 2022. PMAY is divided into two categories – Pradhan Mantri Awas Yojana – Gramin (PMAY-G) and Pradhan Mantri Awas Yojana – Urban (PMAY-U).
Key components of PMAY
The PMAY scheme comprises of several key elements which are as follows –
1. A partnership between the private and public sector
Such scheme encourages organisations in public and private sectors to form a partnership to develop an affordable housing project. The housing projects under these partnerships will acquire Rs.1.5 lakh as financial aid for per house built for EWS and a minimum of 250 houses under each plan.
2. Credit linked subsidy scheme
Under the PM Awas Yojana 2020, the subsidy will be provided on the home loan interest rate for construction or purchase of a house, or renovation of an existing residence. The interest subsidy will be credited upfront to the beneficiaries’ account. Under this scheme, one can avail interest subsidy up to Rs.2.67 lakh.
3. Slum rehabilitation
PMAY integrates the concept of ‘land as a resource.’ Accordingly, land belonging to private/ULB/central/state government will be acquired to build houses for slum dwellers. The central government will provide a grant of Rs.1 lakh per house under such slum rehabilitation projects.
4. Grant to EWS
PMAY scheme will provide financial assistance to individuals belonging to the economically weaker section. These individuals will gain a grant amount of Rs.1.5 lakh to renovate an existing house or construct a new one.
Who are the beneficiaries under PMAY?
The beneficiaries under this scheme have been divided into categories based on their income. The PMAY list of recipients include –
- Economically weaker section (EWS) – Those with an annual income not exceeding Rs.3 lakh falls within this category. Individuals belonging to this category can opt for a home loan amount of up to Rs.6 lakh on which they will acquire a subsidy of 6.5%.
- Low-income group (LIG) – Individuals whose yearly income is between Rs.3-6 lakh comes under this segment. They will also be granted a subsidy of 6.5% on home loan interest rates.
- Middle-income group I (MIG – I) – Individuals with an annual income ranging between Rs.6 to Rs.12 lakh fall in this category. They are eligible to avail home loans up to Rs.9 lakh. They are liable for a 4% subsidy on interest.
- Middle-income group II (MIG – II) – Individuals whose yearly income is within Rs.12 to Rs.18 lakh belongs to this group. They are eligible to opt for a Pradhan Mantri Awas Yojana loan of up to Rs.12 lakh on which they will be given a 3% subsidy.
How to apply for PMAY
One can apply both offline and online for Pradhan Mantri Awas Yojana. If you live in a city, know how urban residents can get a house via PMAY. To apply offline, an individual should visit one of the designated primary lending institutions under PMAY. Alternatively, follow the below-mentioned steps to apply online –
- Go to the official PMAY website and select ‘citizen assessment.’
- Select ‘benefits under the other three components.’
- Enter your Aadhaar number to access the PMAY application number.
- Enter the required details in the PMAY application form.
- After entering all the information, click on save.
- Look out for an application number which should be saved for future reference.
Before applying for the PMAY Gramin or Urban scheme, make sure you go through the PMAY eligibility criteria to avoid any complications. If you are a first time home buyer, you should know if you are eligible for PMAY. Aside from that, you should keep in handy the crucial documents for a quicker application process.
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