What is Pradhan Mantri Awas Yojana Scheme and Its Benefits?

We have all heard about the impressive (PMAY) Pradhan Mantri Awas Yojana government scheme that has brought thousands of people and families closer to purchasing and owning an affordable home. 

In a nutshell, PMAY is a flagship scheme of the Government of India looking to provide budgeted housing to the urban poor. The scheme was launched in 2015 by Shri Prime Minister Narendra Modi and has since been a significant step towards the government's goal of 'Housing for All' by 2022. 

So, how do you stand to benefit from it? Let us take a closer look. 

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) was established to build more than two crore houses in urban regions by 2022. 

PMAY is divided into Pradhan Mantri Awas Yojana Urban (PMAY-U) and Pradhan Mantri Awas Yojana Gramin (PMAY-G). While PMAY-U is concerned with providing affordable housing to the urban poor, PMAY-G envisions delivering affordable housing to the rural poor. The deadline for the former has now been extended to December 2024.

Additionally, PMAY has four components: Credit Linked Subsidy Scheme (CLSS), In-situ Slum Redevelopment (ISSR), Affordable Housing in Partnership (AHP) and Beneficiary Led Construction (BLC). 

Benefits of Pradhan Mantri Awas Yojana

The PMAY scheme has several benefits for the eligible beneficiaries who belong to the Economically Weaker Sections (EWS), Low-Income Groups (LIG) and Middle-Income Groups (MIG) categories. 

Here are some of the benefits that you can avail as per this scheme:

1. Affordable Housing: The main benefit of PMAY is that it provides affordable housing to the urban poor. The scheme offers financial assistance to the beneficiaries to help them build or buy a house.
2. Subsidised Interest Rates: PMAY seeks to provide home loan subsidies on the interest paid by eligible beneficiaries. The PMAY scheme offers up to 6.5% subsidy on interest for EWS and LIG, 4% for MIG-I, and 3% for MIG-II on housing loans availed for a period of 20 years under CLSS. The subsidy is calculated on a maximum of Rs. 6 lakh of loan amount for EWS/LIG, Rs. 9 lakh for MIG-I and Rs. 12 lakh for MIG-II.  This can significantly reduce your monthly EMI burden and make your home loan more affordable.
3. Increased Carpet Area: The PMAY scheme has increased the carpet area of houses eligible for interest subsidy under CLSS. The carpet area is now up to 30 sq. mt. for EWS, up to 60 sq. mt. for LIG, up to 160 sq. mt. for MIG-I and up to 200 sq. mt. for MIG-II.  This means you can get a bigger house with more space and comfort as per this scheme.
4. Empowerment of Women: PMAY gives priority to women who are the co-owners of the property. This empowers women and makes them equal partners in the development of their homes and communities.
5. Inclusive Development: PMAY aims to deliver affordable homes to all sections of society, including economically weaker sections, lower-income groups, and middle-income groups. These include slum dwellers, urban poor, minorities, SCs/STs/OBCs, differently-abled persons, etc.  It also provides preference to senior citizens, widows, transgender persons, etc. This ensures that everyone gets a dignified living space with basic amenities.
6. Eco-Friendly Construction: The PMAY scheme encourages eco-friendly construction practices using sustainable building materials, energy-efficient technologies, and green norms.  This helps reduce the environmental impact of urbanisation and enhances the quality of life.

Eligibility Criteria for Pradhan Mantri Awas Yojana

To be eligible for PMAY, the applicant must meet the following criteria:

1. The applicant must be an Indian citizen.
2. The applicant or his/her family must not own a ‘pucca house’ anywhere in India.
3. The applicant should be from either of the following categories - Economically Weaker Section (EWS), Lower Income Group (LIG), or Middle-Income Group (MIG).
4. The beneficiary's annual household income should not exceed Rs. 18 lakhs for MIG I and Rs. 12 lakhs for MIG II.
5. The property should be located within the statutory towns as notified by the government occasionally.

The specific eligibility criteria for each component can be found on the official website of PMAY: https://pmaymis.gov.in/

How to Apply for Pradhan Mantri Awas Yojana

To apply for PMAY, the applicant must follow the instructions mentioned below:

1. Visit the official PMAY website and select the category you want to apply for.
2. Fill in the application form with all the required details.
3. Upload the necessary documents, such as proof of identity, address, income, and property documents.
4. Submit the application form.
5. Track the status of your application on the website.

Alternatively, one can also apply offline:

1. Visit any Common Service Centre (CSC) near you with your Aadhaar card and other documents as required.
2. Fill up the application form provided by the CSC operator.
3. Pay a nominal fee of Rs.25 + GST and get an acknowledgement receipt.

You can also track your application status offline by visiting the same CSC.

Final Words

The Pradhan Mantri Awas Yojana is a significant step towards providing budgeted housing to the urban poor in India. The initiative ensures eligible beneficiaries receive appropriate financial incentives to build or buy a house.

The interest subsidies provided under PMAY reduce the burden on beneficiaries to repay the loans. PMAY empowers women and ensures inclusive development by providing affordable housing to all sections of society. 

The government has continuously increased the budget allocated to the PMAY scheme over the years, with the latest Budget for 2023-24 representing a 280% increase from the budget of FY17 to Rs. 79,590 crores. This emphasises the government’s renewed focus on ensuring that every Indian owns a dignified home. If you meet the eligibility criteria, you should apply for PMAY and take a step towards owning your dream home.