Everything to Know About PMAY Affordable Housing Scheme

With an aim to provide housing to every Indian, the Government of India launched the PMAY or Pradhan Mantri Awas Yojana in 2015. The primary objective here is to assist the lower-income groups of the country in building or purchasing a house of their own.

The Pradhan Mantri Awas Yojana 2020 targets to construct 20 million houses around the country by 2022. Its objectives are mentioned below- 

Objectives of PMAY Scheme 2020

It is estimated that by 2050, the population of urban dwellers in this country will reach 814 million, which is almost twice the current number.

Therefore, the major challenge here is to ensure a sustainable and safe environment for these people. The government intends to make housing for all a reality by including every demographic of the country.

This scheme is divided into two parts: Urban and Rural.

# Urban

PMAY urban will cover approximately 4,400 towns and cities all over the country in 3 phases. According to the data from the Ministry of Housing and Urban Affairs, on 1st July 2019, more than 26 lakh houses have been built across all states and UTs.

# Rural

PMAY rural will assist people in building pucca houses. Beneficiaries, living in the hilly regions will receive Rs.1.3 lakh, and those in the plains will receive Rs.1.2 lakh.

According to the Ministry of Rural Development, more than 1 crore houses have been sanctioned across all states and UTs.

Features of PM Awas Yojana Scheme

  • Pradhan Mantri Awas Yojana will subsidize the interest rate and provide applicants with a housing loan at 6.50% with 20 years tenor.
  • Senior citizens and differently-abled will get preference in terms of ground floor allocation.
  • It will cover every city, town, and villages of the country in 3 phases.
  • Sustainable and eco-friendly materials will be used in the construction of every building.

# Eligibility

Every applicant must mandatorily know about the PMAY eligibility criteria before they apply, as any candidate failing to meet the minimum requirement will not be eligible to benefit from this policy.

Here is a brief overview of the eligibility requirement as mentioned by the Government of India.

  • PMAY-urban will cover the urban poor, especially slum dwellers who live in unhygienic conditions.
  • PMAY-rural will cover the people of the rural area who live in unstable houses.
  • Families with an annual income under Rs.3 lakh, considered as EWS will enjoy a loan at a 6.50% interest rate.
  • Families with an annual income between Rs.3 and Rs.6 lakh are considered under the LIG category and will be able to enjoy the Pradhan Mantri Awas Yojana loan at 6.50% interest.
  • Families with annual income between Rs.6 lakh and Rs.12 lakh will be considered under the MIG1 category would be eligible to avail a loan at a 4% interest rate.
  • Families with annual income Rs.12 lakh and Rs.18 lakh are under the MIG2 income gradient and will be able to avail a loan at a 3% interest rate.
  • In every case, the tenor is 20 years, but the interest subsidy amount will vary.
  • Subsidy amounts are Rs.2.67 lakh for EWS and LIG, Rs.2.35lakh for MIG1 and, Rs.2.30 lakh for MIG2.

Now, to know how PMAY eases your way to becoming a homeowner, let’s take a look at its application process.

PMAY Application Process

  • To apply for Pradhan Mantri Awas Yojana, applicants have to visit the official website.
  • Then find the “Citizen Assessment” option under the “Menu” section.
  • Enter the Aadhar card number.
  • After this, it will redirect to the application page.
  • Now enter all the personal details, current residential information, income details, and the bank account details.
  • Check “I am aware of” option and then save it.
  • After saving, a system-generated number will appear that would be useful for future reference.
  • Now download and print the application.
  • And submit this form to the nearest CSS office or financial institutions with necessary documents.

Pradhan Mantri Awas Yojana has already started to show its benefits all around the country. Started in 2015, this scheme in its 2nd phase is currently on track to provide housing solutions for more Indians.