The Pradhan Mantri Awas Yojana(PMAY) has been introduced by Prime Minister, Narendra Modi on 1 June 2015. PMAY Scheme is an initiative provided by the Government of India which aims at providing affordable housing to the urban poor by the year 2022.
Features of Pradhan Mantri Awas Yojana
- Under PMAY Scheme, subsidy interest rate is provided at 6.5% on housing loan for the term of 15 years to all the beneficiaries.
- Differently abled and senior citizens will be given preference in the allocation of ground floors.
- Sustainable and eco-friendly technologies would be used for construction.
- The scheme covers entire urban areas in the country which includes 4041 statutory towns with the first priority given to 500 Class I cities. This will be done in 3 phases.
- The credit linked subsidy aspect of the PM Awas Yojana gets implemented in India in all statutory towns from the initial stages itself.
Eligibility Criteria for PMAY Scheme
- Any household with a total annual income between Rs.6 lakh to Rs18 lakh can apply for the PM Awas Yojana. The applicant is allowed to include the income of the spouse while applying for this scheme.
- Indian citizens who are women may apply. No other demographic will be considered as long as they are women.
- The beneficiary can only buy a new house in order to enjoy Pradhan Mantri Awas Yojana benefits. People who already own a house are not eligible to apply for this scheme. No pucca should be owned by the beneficiary or member of the family, in any part of the country.
- People will be allowed to buy/construct new houses only. One cannot avail PMAY benefits on the already built house.
- People who belong to the low-income group i.e. LIG and economically weaker sections also known as EWG in the society may also apply.
- Scheduled tribes and castes will also be eligible.
- Senior citizens and differently abled will be given special priorities for ground floor housing.
How to Apply for the PM Awas Yojana Online
- Visit the PM Awas Yojana official website http://pmaymis.gov.in/
- Under the “Menu” section, find the “Citizen Assessment” option
- Enter your 12-digit Aadhaar card number
- Once you have entered your Aadhar information, you will be redirected to the application page
- You will be asked to enter your personal details, income details, current residential address, and your bank account details
- Enter all information in the application
- Click on “I am aware of” option at the end of the page and click the “Save” button
- Once you click the “save” option, you will see a system generated application number which you can save for future reference
- Download and print the duly-filed application
- Submit the form at your nearest CSC office centers and financial institution/banks along with the required documents
What PMAY Scheme offers in a Nutshell
| Particulars | MIG 1 | MIG 2 |
|---|---|---|
| Annual income (Household Income) | Between Rs.6 lakh to Rs.12 lakh | Between Rs.12 lakh to Rs.18 lakh |
| Subsidy on interest | 4.00% | 3.00% |
| Tenure of the loan to qualify for the subsidy | 20 years | 20 years |
| Loan amount to qualify for the subsidy | Rs.9 lakh | Rs.12 lakh |
| Minimum carpet area(Square metres) | 90 square metres | 110 square metres |
| Maximum carpet area(Square feet) | 968.5 square feet | 1,184 square feet |
| Discount rate for NPV | 9.00% | 9.00% |
How to Get Interest Rate Subsidy under Pradhan Mantri Awas Yojana
- Apply for a home loan from any listed lending institution asking for a subsidy.
- The lending institution will review your application and you are eligible, your application will be sent to the Central Nodal Agency.
- Upon verification, if your application is approved and no discrepancies are found, the Central Nodal Agency will disburse the subsidy amount to the lending institution.
- This amount will be credited to your account by the lending institution which will lower your total loan amount.
- You can continue paying the EMIs towards the balance loan amount.
Beneficiaries Under the Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana targets specific groups like:
- Women
- Scheduled Caste
- Scheduled Tribe
- Economically weaker section of the society
- Low-income group population
- Medium income group 1
- Medium income group 2
Three Phases of Pradhan Mantri Awas Yojana
The PMAY Scheme will be executed in three phases. Refer to the below tables for more details:
Phase 1
| Start date | 04/01/15 |
| End date | 03/01/17 |
| Cities covered | 100 |
Phase 2
| Start date | 04/01/17 |
| End date | 03/01/19 |
| Cities covered | 200 |
Phase 3
| Start date | 04/01/19 |
| End date | 03/01/22 |
| Cities covered | Remaining cities |
Home Loan Interest Rate for PMAY Scheme
Home loan interest rate is around 9% at present. So, if 4% interest subsidy on a loan of up to Rs.9 Lakhs is applied, then the E.I.R (Effective Interest Rate) would be 5%, which will benefit the home buyer or borrower.
| Eligibility | Income Range | Carpet Area | Rate of Interest |
|---|---|---|---|
| Economically weaker sections | Max of Rs.6 lakh | 30 sqm | 6.50% |
| Lower Income groups | Max of Rs.6 lakh | 60 sqm | 6.50% |
| Middle Income Group 1 | Less than Rs.12 lakh | 110 sqm | 4.00% |
| Middle Income Group 2 | Between Rs.12 lakh and Rs.18 lakh | 150sqm | 3.00% |
