The Pradhan Mantri Awas Yojana (PMAY), launched by the central government in June 2015, is aimed at providing affordable housing to economically weaker sections.
The scheme’s target is to provide housing to at least 20 million people by 2022.
The scheme has four major components: a) slum redevelopment with private sector participation using land as resource b) affordable housing through a credit linked subsidy c) affordable housing in partnership with the private and public sector and d) beneficiary led house construction/enhancement. Under these various components, central assistance will be in the range of Rs 1 lakh to Rs 2.30 lakh.
What is the credit linked subsidy component of the scheme?
It’s meant for the low-income group (LIG)/economically weaker sections (EWS) and the middle-income group (MIG).
Those earning less than Rs 6,00,000 per annum are termed as LIG/EWS and those earning between Rs 6,00,000 and Rs 12,00,000 will come under MIG I. If you earn between Rs 12,00,000 and Rs 18,00,000, you will come under MIG II. Only these people will be eligible to avail the benefits of the PMAY under the credit linked subsidy component of the scheme.
The scheme aims to construct homes for those living in slums or kutchcha homes. The government aims to provide 3,789 beneficiaries with homes by the end of March 31, 2017. Under this part of PMAY, the differently-abled and senior citizens will be given preference for ground floors.
In order to avail the benefits of the scheme you should fulfill the following criteria other than the income criterion mentioned above:
— The family should include a husband, a wife and children who are yet to be married.
— The family should not own a constructed house in India.
— The house should be of the specified carpet area in order to avail the scheme.
— For those who belong to LIG/EWS, a woman should be the owner of the house for availing the subsidy.
The PMAY offers the following benefits:
— Those who come under LIG can avail an interest rate subsidy of 6.5% for home loan with a tenure of 20 years or less. The maximum loan amount should be Rs 6,00,000.
— Those who belong to MIG I and MIG II can avail a subsidy of 4% and 3% respectively for a loan amount of up to Rs 9 lakh and Rs 12 lakh respectively. The tenure of the loan will have to be 20 years or less.
— The interest subsidy on the home loan will be credited to the loan account of beneficiary through the financial institution or bank. This will result in reduced effective Equated Monthly Installment (EMI).
— The timeline for availing the subsidy was 31st March 2017 for the MIG groups. However, this has now been extended to 2019.
— The carpet area of the home for availing the subsidy has also been increased by the government for the MIG groups.
— There will be a cap on the maximum amount of subsidy that can be availed.
Check the below table for more details.
|Income Group||Carpet Area (sqm)||Max. loan (Rs.)||Max subsidy (Rs.)||Woman ownership||Validity|
|MIG I||120||9,00,000||2.35 lakh||Not mandatory||31/3/2019|
|MIG II||150||12,00,000||2.30 lakh||Not mandatory||31/3/2019|
How to apply for PMAY scheme
— Visit the PMAY website
— Click on the link ‘Citizen Assessment’.
— Give your Aadhaar number
— The application form will be displayed.
— Fill in all the details.
— Download the form and take a print-out.
— Submit the form along with the relevant documents to the bank or financial institution from which you are availing the loan.
The PMAY website has a calculator to help you calculate the amount of subsidy for your loan. The subsidy will be decided based on whether you live in an urban area or rural area. The PMAY has separate websites for those in the urban and rural areas (Gramin). One can also search for beneficiaries by name on the website.