The Indian Government introduced the PMAY or Pradhan Mantri Awas Yojana scheme in the year 2015. The scheme was an initiative to provide affordable housing for all by 2022. PMAY has two components- PMAY Urban and PMAY Gramin.
The PMAY-U is directed towards addressing the housing requirement of urban poor and slum dwellers. The PMAY-G extends financial assistance to the poor rural population to help them build a pucca house with all essential amenities.
The following section offers a brief overview of benefits and PMAY eligibility to help beneficiaries make an informed decision.
Features & Benefits of PMAY scheme
Benefits of PMAY Urban includes-
- The Indian Government extends slum rehabilitation grants of Rs.1 lakh per house.
- To increase the availability of residential property to the economically weaker section of the society in urban areas, the Government of India extends a grant of up to Rs.1.5 lakh.
- The Government also offers a Credit Linked Subsidy Scheme (CLSS) under which ESW and low-income group households can avail home loans at subsidised interest rates. Through the CLSS scheme, the Indian Government will offer a 6.5% subsidy for a home loan with a tenor of 20 years.
Features and benefits of PMAY-G are –
- Financial aid of Rs.1.2 lakh for households residing in the plane lands.
- An aid of Rs.1.3 lakh for households in the hilly regions and North-Eastern states.
- Exclusive financial assistance for households under BPL.
- The minimum size of the house constructed under the PMAY-G scheme is 25 sq. meters. All such households will also be provided with essential amenities.
General eligibility criteria for PMAY scheme
The Pradhan Mantri Awas Yojana eligibility criteria include:
- The beneficiary or any member of their family should not have a pucca house in any part of India.
- Applicants must not enjoy benefits of any other housing-related scheme proposed by the Indian Government.
- Married couples can receive only a single subsidy for joint or single ownership of the house.
- Applicants cannot avail PMAY benefits for already built houses.
Various PMAY beneficiary categories
PMAY beneficiary categories can be divided into 4 broad segments based on their annual income, which includes-
- Economically Weaker Section (EWS) – Households with an annual income under Rs.3 lakh fall under this category. For the ESW, the maximum subsidy offered is 6.5% for a loan amount of Rs.3 lakh.
- Lower Income Group (LIG) – Individuals with annual income between Rs.3 lakh and Rs.6 lakh. For LIG Indian Government offers a subsidy of 6.5% on a loan amount of Rs.6 lakh.
- Middle Income Group I (MIG I) – Households with annual family income under Rs.12 lakh. Beneficiaries under this group can enjoy a 6% subsidy on a loan amount of Rs.6 lakh to Rs.12 lakh.
- Middle Income Group-II (MIG II) – People with a household income between Rs.12 lakh to Rs.18 lakh. Individuals can get a maximum of 3% subsidy on a loan amount of Rs.12 lakh.
Therefore, you must check the PMAY eligibility criteria properly to enjoy the maximum benefit of the PMAY scheme.
Mandatory female ownership
PMAY scheme makes female ownership of the property mandatory. The government mandates, a household availed through the PMAY scheme should be registered in a women’s name of the family even if she is not buying it.
Facilities for senior citizens and differently-abled individuals
The clauses under the PMAY scheme also guarantee ground floor accommodation for senior and differently-abled citizens.
Application process for PMAY
Step 1- Visit the official PMAY website.
Step 2- Enter your Aadhaar number for the verification process.
Step 3- Enter all your personal details as asked for in the respective field of the PMAY form.
Step 4- Click on “Save” to save the form and generate the unique application number, which will be used for your future reference.
For further benefits, home loan borrowers must also check their pre-approved offers by NBFCs extended on several financial products like home loans, loan against property etc. The pre-approved offers reduce the document verification process and facilitate quick loan disbursement. Applicants can check their pre-approved offers by sharing their names and phone number.
Also, borrowers can use home loan EMI calculator to get an estimate of their monthly payables at the subsidised interest rates under the PMAY scheme.
The key benefits of PMAY scheme make purchasing residential property extremely convenient. It is one of India’s most lucrative housing finance options, which has proven extremely beneficial for both urban and rural households, ensuring a healthy livelihood for all.