In 2015, the Prime Minister launched Pradhan Mantri Awas Yojana, which aims to offer affordable houses to each and every resident of India (with valid citizenship). The government is primarily focusing on providing housing to citizens who are otherwise financially handicapped. It aims to give Indians better access to their basic right i.e. living in a comfortable and healthy environment.
This flagship housing project is primarily segregated into two components:-
- Pradhan Mantri Awas Yojana Urban aka PMAY-U
- Pradhan Mantri Awas Yojana Rural or Gramin a.k.a PMAY-G
Under Pradhan Mantri Awas Yojana Urban and Rural scheme, the authorities plan to construct approximately 22 million homes, which will have all amenities such as electricity supply, sanitation facilities and water supply for the benefit of the residents. To help the citizens afford such homes, the government is also offering credit-based subsidies on home loans under this scheme. Hence, if you are looking forward to procuring a house under this scheme, you can easily apply for a home loan at a discounted interest rate and avail housing facilities without spending much.
Currently, all the Non-banking finance companies like Bajaj Finserv are allowing interested buyers to avail loans at a subsidized rate. Under this scheme, everyone can additionally enjoy up to 3-EMI holiday, discounted interest rates in loan facilities and skip paying the principal for up to 4 years.
Difference between PMAY Rural and PMAY Urban
Although both the schemes are launched by the Central Government, the PMAY Rural & Urban schemes are different in terms of their basic eligibility criteria and subsidy rates.
Beneficiary and Income Eligibility of PMAY Urban
In order to meet the Pradhan Mantri Awas Yojana urban eligibility criteria, the scheme divides the entire list of beneficiaries into 3 broad groups based on their annual income i.e. the lower income groups, middle-income groups and economically weaker sections of the community.
For a person to be eligible under the economically weaker section group, their annual income must be between 3-6 lakh rupees. This condition also applies to the lower income groups.
In order to be qualified under the middle-income section group, the annual income of a household must be between 6-12 lakhs. This eligibility criterion specifically applies to the middle-income group category. To qualify for the high-income group category, the annual income of the household must be between 12-18 lakhs.
Eligibility Criteria for PMAY Rural Group
Under this scheme, the Gram Sabha body chooses beneficiaries based on the 2011 socio-economic caste census. If the Gram Sabha body members select your name for the scheme, then your name will appear in the final list.
Special preference is given to transgender, women, disabled people, senior citizens, and other weaker sections in society to attain the housing scheme.
How to Apply?
The application process for Pradhan Mantri Awas Yojana is pretty easy. The applicant needs to visit the common service center if they wish to apply for PMAY via offline mode. The application fee for PMAY registration is only INR 25.
For those who prefer registering online, they may log in to pmaymis.gov.in. If you are the applicant, you will have to verify your identity through Aadhar card number and submit other details like date of birth, along with the form.
Subsidy Rates for PMAY-U Applicants
Under the current PMAY-U scheme, those who belong to the MIG category will not be able to claim subsidies for construction or renovation but only avail the subsidy for a home purchase. However, the applicants belonging to the EWS and LIG category can avail a credit linked subsidy at a rate of 6.5% for home loans up to INR 6 Lakhs for both home purchase and renovation. Applicants under the MIG Category I and II can avail a subsidy of 4% and 3% for loans up to 12 lakhs.
Subsidy Rates for PMAY-G Applicants
A subsidy of up to 3% is offered for home loans amounting to 2 lakhs, which can be availed for either construction or renovation.
All in all, the central government has gone a step ahead to provide accommodation to the families who are struggling under the pressure of paying monthly rent and are not able to buy a house of their own due to liabilities and expenditures. Now that you are aware of the benefits of the PMAY scheme, assess your income and take your step towards a brighter future and a better lifestyle now.