The Government of India launched Pradhan Mantri Awas Yojana in order to boost the accessibility and affordability of the real estate sector. This plan of action was introduced by the on June 17th, 2015 with an aim to provide housing solutions for all and with special impetus to the economically weaker section and lower and middle-income group of the population by March 2022.
According to data released by the Ministry of Housing and Urban Affairs, as of July 2019, Rs.25.83 crore has been allocated to build residential properties across India. In addition, the government has approved 83.63 lakh houses to date, out of which 26.08 lakh houses have been constructed.
In an attempt to fulfil its objective of “housing for all”, the central and state government shared its cost of housing development in the ratio of 90:10 for the north-eastern and hilly areas and 60:40 for other regions.
PMAY: Scheme outline and structure
This scheme is divided into two parts- Urban and Gramin.
- PMAY-U – Around 4,331 towns and cities are incorporated under this scheme. The total amount estimated to be invested under this plan is Rs.4,95,838 crore.
- PMAY-G – The Pradhan Mantri Awas Yojana Gramin is aimed at promoting affordable pucca houses for individuals hailing from rural India with the exception of Delhi and Chandigarh.
Under these projects, the beneficiaries can avail a home loan at a subsidised interest rate implemented under PMAY.
In order to avail the benefits and features of this project, it is imperative to know about the application procedure.
Who can apply for a house under Pradhan Mantri Awas Yojana?
Beneficiaries who are eligible to apply for PMAY include –
- Economically Weaker Section (EWS).
- Low Income Group (LIG).
- Middle-income Group (MIG).
- Women belonging to EWS and LIG category.
- Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Classes (OBC).
In addition, there are certain clauses which need to be fulfilled by the beneficiaries to avail the subsidised home loan interest rate, viz. –
- Age– The individual should not be more than 70 years old.
- Income – As mentioned above, the applicants should fall under any of the groups as mentioned above based on their household income. The annual household income of EWS should not exceed more than Rs.3 lakh. LIG family income should be between Rs.3 lakh and Rs.6 lakh. MIG-1 and MIG-2 should have an annual household income between Rs.6 lakh to Rs. 12 lakh and Rs.12 lakh to Rs.18 lakh respectively.
- Residence – The beneficiaries should not have ownership of any property in any part of India, neither should they have availed any assistance from government-backed programs in the past.
Once, you are aware of your eligibility for PMAY home loan you can either apply online or offline for availing the benefits of this yojana.
How to apply for PMAY?
- Online procedure –
- Log on to the official website of Pradhan Mantri Awas Yojana.
- Select the “Benefit under other 3 components” under Citizen Assessment dropdown.
- Provide your Aadhaar number.
- Input the required details.
- Offline procedure –
Application offline can be done by through the form made available by the Common Service Centre.
- Documents required –
- Aadhaar details.
- Identity proof- PAN card, Voter ID card, Driving license.
- Income certificate.
- Proof that the applicant does not own a ‘pucca’ house.
Upon selection as a beneficiary under this plan of action, several financial institutions provide home loans at attractive interest rates. Several financial institutions also provide dedicated tools such as PMAY eligibility calculator to help borrowers check their subsidy rate and amount in addition to the maximum loan amount.
The applicants can avail all the benefits of Pradhan Mantri Awas Yojana Gramin after the successful completion of the application procedure. It is important to remember however, any misrepresentation of facts will inevitably lead to cancellation of loan and prompt legal action.