With the mission to provide homes to all by 2022, the Government’s flagship scheme - Pradhan Mantri Awas Yojana, was introduced in 2015. Addressing the housing deficit in both rural and urban areas is the primary motto of the PMAY subsidy scheme.
As per the official report presented in Budget 2021,
- More than 1 crore houses were sanctioned under this scheme.
- Approximately 38.45 lakh houses are already completed.
Besides facilitating access to affordable homes, this scheme encompasses several other objectives. With the PMAY scheme progressing satisfactorily, individuals must have a fair idea of its different aspects before applying for the benefits.
Important aspects of Pradhan Mantri Awas Yojana
Following are some crucial factors that individuals need to know before applying for this aid.
Components of PMAY
The PMAY subsidy scheme is divided into 4 components. These are -
- In-situ slum redevelopment: This scheme explores the land potential available in a slum area and aims at providing housing facilities to slum dwellers.
- Affordable housing in partnership: As the name suggests, this project targets to offer affordable housing to economically weaker section through private intervention.
- Beneficiary-led construction/enhancement: Under this project, individuals from the economically weaker section (EWS) can avail of financial assistance of up to Rs. 1.5 lakh to construct new houses or renovate existing ones.
- Credit Linked Subsidy Scheme: Under this component of the PMAY subsidy scheme, beneficiaries can avail of a home loan and qualify for a subsidised interest as per their eligibility. However, there is a cap on the loan amount for beneficiaries belonging to different income groups.
Hence, individuals need to know about the eligibility to choose the best offer available.
PMAY eligibility criteria
Primarily, first-time homebuyers are eligible for this facility. Depending on the annual household income, the PMAY subsidy scheme is divided into four groups. The subsided interest rates and loan principal available depends on the group to which an individual belongs. It includes -
- Economically Weaker Section (EWS): Annual income of up to Rs. 3 lakh.
- Lower Income Group (LIG): Annual income of up to Rs. 6 lakh.
- Middle Income Group I (MIG I): Income up to Rs. 12 lakh
Middle Income Group II (MIG II): Household income must not exceed Rs. 18 lakh annually. Apart from these, individuals also must meet the following Pradhan Mantri Awas Yojana eligibility criteria, irrespective of their income -
- Beneficiaries or any of their family members must not own a pucca house anywhere in the country.
- For LIG and EWS groups, the woman head of the household must own or co-own the house mandatorily. For the MIG section, the priority would be given to women owners.
- Beneficiaries should be residing Indian citizens possessing Aadhaar Card.
Only after fulfilling the eligibility criteria can individuals expect their names on the PMAY list.
Subsidy available
PMAY subsidy scheme varies with different income groups. For instance -
- Both EWS and LIG beneficiaries are eligible for a subsidised interest rate of 6.5%. The maximum principal available for a home loan under PMAY is Rs.6 lakh for these groups.
- MIG I income earners are qualified for a subsidised interest rate of 4% on the loan amount up to Rs. 9 lakh.
- MIG II beneficiaries are eligible for a subsidised interest rate of up to 3% on the loan amount up to Rs. 12 lakh.
For each group, the maximum loan tenor is up to 20 years. Those failing to satisfy the eligibility requirements can alternatively opt for a home loan from leading HFCs against low-interest rates.
Before applying for this credit, look for pre-approved offers extended by financial institutions. These offers are available for home loans, loans against property, etc. and help streamline the application process. Check your pre-approved offer by providing your name and contact number.
In line with this, individuals also need to know about the application process of the PMAY subsidy scheme.
Application process
Eligible beneficiaries can visit their respective state or UT’s Common Service Centre (CSC) and duly fill up the application form and submit it. They have to pay nominal application fees of Rs. 25 + GST to apply offline.
Alternatively, they can also apply online by visiting the official PMAY website. On applying successfully, individuals can also check their PMAY status through the official website.
These are some of the most crucial factors of the PMAY subsidy scheme that individuals need to remember to make an informed decision and maximise the benefits of this facility.