Pradhan Mantri Awas Yojana or PMAY is an Indian government initiative that aims at making affordable housing available to all by 2022. First launched on 1st June 2015, it is a CLSS or Credit Linked Subsidy Scheme under which you receive interest subsidy after availing a loan or buying or constructing a house. The mission of the scheme is ‘Housing for All’ by 31st March 2022, which also happens to be the 150th birthday of Mahatma Gandhi.
Depending on the areas it caters to, the scheme has two parts: PMAY-U (Urban) and PMAY-G (Gramin). Let’s know more about them.
Approximately 4,331 cities and towns come under this scheme at present. It includes all the authorities responsible for planning and regulating urban areas of the country, such as urban development authority, industrial development authority, development area, special area development authority, notified planning, etc.
The scheme intends to proceed in three phases:
Phase 1: Covering 100 cities in select UTs and states from April 2015 to March 2017
Phase 2: Covering 200 more cities from April 2017 to March 2019
Phase 3: Covering the rest of the cities from April 2019 to March 2022
According to the data released from the Ministry of Housing and Urban Affairs, the progress of the scheme in all states and UTs as of 1st July 2019 is as follows:
- 63 Lakh Sanctioned houses
- 08 Lakh Completed houses
- 97 Lakh Occupied houses
The 52nd meeting of CSMC (Central Sanctioning and Monitoring Committee) was held on 20th January 2021. As per the Union Housing and Urban Affairs Ministry, the Indian government has approved the construction of 1.68 lakh houses under the PMAY-Urban Scheme.
Formerly called Indira Awas Yojna, the scheme was renamed PMAY-G in March 2016. It aims at making housing affordable in rural parts of India, except Chandigarh and Delhi. Homeless people and those living in crumbling houses can gain financial help under this scheme to construct pucca houses.
Those living in plains can get up to ₹ 1.2 lakh, while those living in hilly areas, IAP, difficult areas, and north-eastern parts can get up to ₹ 1.3 lakh of assistance. As per the Ministry of Rural Development, 1,03,01,107 houses have got sanctioned in all Indian states and union territories under the scheme.
Benefits and Features of PMAY Scheme
The main benefits and features of the scheme are as follows:
- A subsidised interest rate of 6.50% per annum if the beneficiary takes a home loan for up to 20 years of the loan term
- 3-4% interest subsidy provided to MIG (Middle Income Group) for home loans to acquire or construct a house, including repurchase
- All urban areas, including statutory towns, are covered in the scheme, with priority to 500 Class I cities
- Sustainable and eco-friendly technology to be used for construction
- Preference of ground floor to differently-abled and senior citizens
Eligibility Conditions to Avail the Scheme Benefits
The model of loan subsidy aims at helping the economically weaker individuals to own a house. So, here are a few eligibility conditions you need to meet:
- The applicant or the applicant’s family must not own a pucca house in any part of India. The family includes the applicant’s wife, husband, unmarried son, or unmarried daughter.
- A person with an annual household income of up to ₹ 18 lakh is eligible for this scheme. The annual income of the spouse can also be included at the time of application.
- PMAY benefits are not available for already-built houses.
- Married applicants can avail of single housing loan subsidy only for single or joint ownership of the house.
- The applicants and their family must not have received a benefit from any other housing-related scheme from the Indian government.
To avail of a house or financial reinforcement from the government, every applicant needs to meet the eligibility criteria set by the PMAY committee. Prospective applicants have been branched into six distinct groups
Categories of Beneficiaries
Beneficiaries of the PMAY scheme can be divided into six categories:
- EWS: People whose annual household income is under ₹ 3 lakh
- LIG: People whose annual household income is between ₹ 3 lakh and ₹ 6 lakh
- MIG1: People whose annual household income is under ₹ 12 lakh
- MIG2: People whose annual household income is between ₹ 12 lakh and ₹ 18 lakh
- Minorities: Beneficiaries for the scheme include candidates as per the Socio-Economic and Caste Census data. These include the following:
- Scheduled castes
- Scheduled tribes
- Minorities and non-SC/ST under BPL
- Freed bonded labourers
- Kin and widows of paramilitary forces
- Kin and widows of ex-servicemen, individuals killed in action, and those under a retirement scheme
- Women: Women coming under EWS and LIG categories
If you are an eligible beneficiary of the PMAY scheme, you have two option to apply for it:
- Online: Visit PMAY’s official website and get your Aadhar Card verified by entering its 12-digit Aadhar number. Once verified, enter your personal details and click on ‘Save’. Once you complete the application form, you will receive a system-generated application number that you must save for future reference.
- Offline: Visit your nearest Common Service Centre, get a form for the scheme, fill it up, and submit.
Documents Required for Application
Here are a few documents you have to submit at the time of application:
- Duly signed application form
- Property documents, like the deed of sale or sale agreement, allotment letter, NOC from society/builder, etc.
- ID proof, like Aadhar card, driving license, voter ID, PAN card, etc.
- Address proof, like passport, voter card, Aadhar card, rent agreement, or latest utility bill
- Income proof
- For salaried employees: 6 months’ salary slip, last 6 months’ bank statement, latest form 16, etc.
- For self-employed: Balance sheet, profit & loss account, IT returns, computation, etc.
Pradhan Mantri Awas Yojana has played an important role in making affordable housing available for all. Apart from that, the scheme also aims at creating ample jobs in the real estate industry. The scheme has included RERA to create 6.07 crore jobs in the nation.
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