What Is The Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana – Urban (PMAY-U) was initiated on 25 June 2015 by the Ministry of Housing & Urban Affairs (MoHUA). The motive behind this initiative was to provide affordable houses to the people coming under the categories of EWS (Economically Weaker Section) / LIG (Lower Income Group), / and MIG (Middle Income Group). Even people living in slums who are eligible for the Yojana can apply for a house under this scheme and benefit. Initially, the scheme was aimed to be closed till 2022 by providing pucca houses to eligible urban people. But later, the term was extended up to Dec 2024 by the Union Cabinet of India. Many people have already availed the benefits of this scheme.
Major Benefits Of The Scheme
The PMAY-U focuses on women’s empowerment, and so, under this scheme, the registration of the house will be done either in the name of a woman or as a joint ownership with a family member. This housing scheme offers basic amenities like electricity, a kitchen, a toilet, and a water supply to the registered owners. People categorised under SC, ST, OBC, Differently Abled, Transgender, Single Woman or Senior Citizen are given priority. The PM’s mission is to provide shelter at a minimum cost to the people who aren’t able to build a house on their own. This mission targets that every individual should own a house proudly.
• Early Credit Linked Subsidy
The Credit Linked Subsidy Scheme (CLSS) offers interest subsidies on home loans under the scheme to all eligible buyers. It is a Central Sector Scheme. Individuals who fall under the categories of EWS, LIG, LIG-II, and MIG are eligible for CLSS.
• Eco-Friendly Construction
Eco-friendly technology and industrial products are being used to construct all houses offered under the PMAY-U scheme. The buildings are constructed qualitatively to give them durability and sustainability.
• Pan India Coverage
The houses will be developed in 3 phases in 500 class-I cities. This scheme is targeting 4041 statutory towns across India. Thus, every weaker section is being addressed under the PMAY-U.
• Prioritizing Special Groups
The priority and preference for the ground floor allocation are given to the senior citizens and specially-abled individuals. It will keep the allocation process justified and prioritized.
• Subsidized Interest Rate
You can enjoy the subsidized interest rate of 6.50% p.a. for a lock-in period of 20 years. The subsidized interest amount is deducted from the total amount at the loan bank itself.
How To Apply For Pradhan Mantri Awas Yojana Online?
- You need to visit the official portal of PMAY-U to apply for the scheme online.
- Go to the ‘Citizen Assessment’ option, or you can click on the Apply Online option.
- Choose your income group from EWS, LIG, MIG-I, or MIG-II.
- After choosing the right option, fill in all your details, Aadhaar number, income-related details, and other necessary information.
- In the final step, submit your application after cross-checking all the furnished details. Then, your application will be sent to authorities for the confirmation & verification.
Beneficiary’s Allowed Annual Income Under The Scheme
Economically Weaker Section (EWS)
The approved annual income for the Economically Weaker Section under PMAY-U is up-to ₹3 Lakh.
Lower Income Group (LIG)
The approved annual income for the Lower Income Group under the scheme is from ₹3 Lakh – ₹6 Lakh.
Middle Income Group (MIG-I)
The approved annual income for the Middle Income Group – I under the affordable housing system is from ₹6 Lakh – ₹12 Lakh.
Middle Income Group (MIG-II)
The approved annual income for the Middle Income Group – II under the Pradhan Mantri Awas Yojna for Urban is from ₹12 Lakh – ₹18 Lakh.
Maximum Interest Subsidy As Per The Subsidy Loan Amount Category Wise
Get approved interest subsidy on the housing loan based on categories divided to execute the scheme systematically.
EWS (Economically Weaker Section)
The interest subsidy for EWS is set at 6.50% p.a. for maximum loan of Rs. 6 Lakh.
LIG (Lower Income Group)
The interest subsidy for LIG is set at 6.50% p.a. for maximum loan of Rs. 6 Lakh.
MIG-I (Middle Income Group – I)
The interest subsidy for MIG – I is set at 4% p.a. for maximum loan of Rs. 9 Lakh.
MIG-II (Middle Income Group – II)
The interest subsidy for MIG – II is set at 3% p.a. for maximum loan of Rs. 12 Lakh.
Types Of Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana – Gramin (PMAY-G)
Pradhan Mantri Awas Yojana for Gramin was earlier named Indira Awas Yojana. But later it was renamed as PMAY-G in the year 2016. Under the scheme, people living in the Gramin region of India were held eligible to avail of the housing subsidy. But the Gramin area of two cities, Chandigarh and Delhi were not included. The government of India and state governments share the cost of housing under the scheme. As per the decided cost ratios, for the Hilly & North-East region, it is 90:10, whereas, for the plain regions, it is 60:40.
Pradhan Mantri Awas Yojana – Urban (PMAY-U)
Pradhan Mantri Awas Yojana for Urban Regions is an initiative of the Indian government under this scheme to provide affordable houses to the weaker sections living or surviving in urban cities of India. The PMAY-U scheme is targeting 4331 urban cities and towns where beneficiaries will be supported by the house loan interest subsidy. The process is further segmented into 3 implantation phases to make this initiative a success.
Phase – 1
The government of India focused upon and targeted the 100 priority cities in various States and Union Territories between April 2015 to March 2017.
Phase – 2
In the second phase, the government again focused and targeted the 200 cities with the help of their state governments, including UTs, between April 2017 to March 2019.
Phase – 3
In the final phase, the government will cover all the left-out cities in different states and UTs to provide affordable houses to people in urban regions till December 2024.
Process To Get The PMAY-U Interest Subsidy
- First, apply for the loan interest subsidy through any listed lending bank or financial institution.
- The lending institution will check your documents and eligibility for the loan amount. Further, your application will be sent to the Central Nodal Agency.
- After verifying the application, if no objections are found, then the Central Nodal Agency will disperse the interest subsidy amount to your lending bank, and further the amount will be credited to your loan account.
- Once the amount is credited to your loan account, the total loan amount will be lowered by deducting the subsidy amount.
- You can continue paying the rest of the loan amount easily.
Conclusion
Pradhan Mantri Awas Yojana is formed to accommodate all the needy people living in the Gramin or Urban regions of the country. Now, every individual from any weaker section can own a house with the interest subsidy help from the government. If you want to learn more about the scheme, you can visit the official site of the PMAY-U. If you are planning to buy a house soon, then you avail the benefits of this scheme before December 2024.
