Pradhan Mantri Awas Yojana (PMAY): Housing for All by 2022

Pradhan Mantri Awas Yojana (PMAY): Housing for All

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PMAY

Pradhan Mantri Awas Yojana (PMAY) Mission came into action on 25th June 2015 which plans to give housing to all. The Mission gives Central Assistance to the executing offices through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for giving houses to all and each qualified family/recipient. Also referred to as ‘Housing for all by 2022’, this credit-linked PMAY subsidy scheme (CLSS) aims to construct over 2 crore houses for Indians belonging to particular economic sections. Individuals availing loans to purchase residential property or land or to construct homes would be eligible for interest subsidies on the said credit. However, the loan interest subsidy is simply available for people belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG), or Middle-Income Group (MIG). According to PMAY rules, the size of a house for the Economically Weaker Section (EWS) may be up to 30 sq. mt. cover zone, however, States/UTs have the flexibleness to expand the size of homes in consultation and approval of the Ministry.

Features of PMAY

The following are the main features of PMAY:

  1. Interest rate is provided at a subsidized rate of 6.50% p.a. if beneficiaries choose a housing loan for a tenure of up to twenty years.
  2. The interest subsidy is provided for the Middle Income Group (MIG) on housing loans for the acquisition/construction of homes (including repurchase).
  3. For Economically Weaker Section (EWS)/Lower Income Group (LIG), the rate of interest subsidy is provided on home loans for construction or acquisition of the house. Interest subsidy will be provided on home loans taken for adding rooms, kitchens, etc. to existing dwellings.
  4. Under this Pradhan Mantri Awas Yojana, all the urban areas are covered in India that features 4041 statutory towns with the priority given to 500 Class I cities.
  5. Eco-friendly and sustainable technologies are used for construction.
  6. For senior citizens and differently-abled, allocation of the ground floor is preferred.

Benefits of PMAY:

The main benefits of PMAY are as follows:

  1. PMAY Subsidy: one of the biggest benefits of PMAY is its rate of subsidy. Interest rates for home loans are generally quite 10% in banks and with the PMAY scheme, a 6.5% subsidy is given to an individual. This indirectly reduces the monthly installments one should pay. This PMAY subsidy will have an enormous and positive impact, especially on the middle-income segment. to understand more click here.
  2. Housing for All: As per the Pradhan Manti Awas Yojana, the govt will construct 2 crore affordable houses across the urban areas of the country. Construction of those affordable houses has already commenced in states like Maharashtra, West Bengal, Tamil Nadu, etc. This scheme will be considered as one of the main initiatives taken by the Indian government in raising the standards of living for the citizens living in rural parts of the country. Considering that 60% of the population living in rural areas, it’ll be an excellent chance for everybody to enjoy the essential facilities.
  3. Development of the nation: The PMAY is one of the various schemes that were introduced by the Indian government and these schemes will benefit the citizens from the rural area. Not only will these projects boost the lower-income and mid-income segment but will have an excellent impact on the country’s land sector the industries related to it, for instance, it’ll boost employment opportunities.
  4. Other benefits: Women who fall into the low earning groups will get special benefits when availing of housing schemes. Provisions have also been made for widows, transgender, senior members, and differently able people. Senior members can also get flats on the ground floor for his or her physical comfort.

Eligibility of PMAY:

PMAY

Before applying to the scheme, however, one must consider whether he/she is eligible to receive subsidies. the following factors determine eligibility for PMAY.

  1. Depending on a person’s income range, he/she would fall in EWS, LIG, or MIG categories. However, if the family’s annual income exceeds the income range for the MIG group, which is Rs. 18 Lakh per annum, they might be ineligible to avail of benefits under the Pradhan Mantri Awas Yojana.
  2. A woman’s name should get on the deed or the property papers. It can either be a sole proprietorship, where the woman owns the house, or it is often joint ownership, where one among the owners must be female to avail of the scheme.
  3. PMAY is merely available for the new property purchase. Also, an applicant must not possess the other pucca properties when applying for the said credit-linked scheme.
  4. The beneficiaries must not have availed any central assistance or benefits from the other housing scheme beforehand, from either the state or the central government for the scheme to use.
  5. The house or property for purchase must belong to at least one of the areas, towns, villages, or cities as per the Census 2011.
  6. Beneficiaries must not have availed benefits under PMAY or the other credit-linked subsidy scheme from any of the financial institutions beforehand.
  7. If the first reason for availing of a home loan is that the renovation or extension of an already existing property, the said work must be completed within 36 months from receiving the primary loan installment.

How to Apply for PMAY Online:

If you qualify for PMAY and are wondering the way to apply for PMAY online, follow the step-by-step guide below.

  1. Identify the category under which you qualify for PMAY.
  2. Then visit the official website: http://pmaymis.gov.in/
  3. Click on ‘Citizen Assessment’ under the main menu and choose the applicant category.
  4. You will be redirected to a separate page where you should enter your Aadhaar details.
  5. Fill out the online PMAY application along with your personal, income, and bank account details, and current residential address.
  6. Enter the captcha code, verify details for accuracy, and submit it.

You can track the appliance status afterward by clicking on ‘Track your Assessment Status’ under ‘Citizen Assessment’.

How to Apply for PMAY Offline:

If you’re unable to use online and wondering the way to apply, PM Awas Yojana also supports an offline application. Simply visit a state government-run Common Service Centre and fill the application form for just Rs.25 plus GST. Do note that no private centers or banks are allowed to simply accept offline PMAY applications.

Also Read: How Much Home Loan Can I Get on My Salary?

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