Pradhan Mantri Awas Yojana or PMAY is a CLSS introduced in 2015 by the Central Government to provide housing for all. It assists eligible beneficiaries to invest in affordable houses and improve their livelihood. In 2021, the government nodded for 3.61 lakh house construction under PMAY (U).
Since its induction, the total number of approved houses under this urban scheme stands at 112.4 lakh, as per the government report. Moreover, almost 82.5 lakh houses are already grounded for construction.
Aspiring homebuyers can now avail of PMAY subsidy and opt for a home loan easily. Moreover, with subsidised interest rates, it is also easier to repay the loan. Nonetheless, before proceeding, they should know about the benefits of this scheme in detail.
Benefits of PMAY Awas Yojana
As per the 2019 government report, the average time to construct a home under PMAY scheme is 114 days. However, in 2020, the average timing reduced to 45 to 60 days under PMAY (G), primarily due to ready availability of labours during reverse migration.
Besides faster home completion, Pradhan Mantri Awas Yojana also proffers the benefits listed below:
Development of urban and rural areas
PMAY scheme is divided into PMAY (U) and PMAY (G) for urban and rural areas, respectively. Therefore, individuals from all statutory cities, villages, union territories can avail the benefits of this housing scheme. However, the eligibility for these two schemes varies.
Eligibility for different income groups
Depending on the income, land availability, and economic background, individuals can avail home loan subsidies under different categories.
Economically Weaker Section (annual income up to Rs.3 lakh) and Lower Income Group (annual income up to Rs.6 lakh): Individuals from both these earning groups are eligible for a subsidised interest rate of up to 6.5% on home loans. The cap for loan amount under the PMAY scheme is Rs.6 lakh.
Middle Income Group I (annual income from Rs.6 lakh to Rs.12 lakh): Beneficiaries of this income group qualify for an interest rate of up to 4% on a loan amount of up to Rs.9 lakh.
Middle Income Group-II (annual income from Rs.12 lakh to Rs.18 lakh): Subsidised interest rate of up to 3% is available on loan principal of up to Rs.12 lakh for this income group.
Note that each of these income groups has to meet specific eligibility criteria to reap the benefits of PMAY scheme.
Women, elderly and differently-abled enjoy additional benefits
This particular scheme also empowers women by encouraging them to apply for this loan and becoming a homeowner. According to PMAY guidelines, a woman must own or co-own the property against which the loan is sanctioned. Moreover, the woman head of the family should be registered as a co-applicant even if she does not contribute financially.
It helps secure the future of women during their old age. Besides, this scheme also prioritises elderly and different-abled citizens by allotting them ground floor mandatorily.
Aims at slum rehabilitation
The PMAY scheme also includes an “in-situ” slum rehabilitation scheme. It allows slum dwellers to replace the current settlement with a “pucca” house. With this provision, the slum dwellers in the city can leverage the land and shift to a better urban settlement. It ensures that lands are in good use and the inhabitants improve their living standards.
Almost all leading HFCs offer a home loan under PMAY scheme. However, individuals need to know how to apply for this advance.
Application process of PMAY
Intending home buyers can apply for PMAY benefits both online and offline. Here are the processes for the same:
The steps for online application are given below:
- Visit the official website of PMAY and navigate to ‘Citizen Assessment’ section on the main menu.
- Select from the 4 schemes, whichever applicable.
- Mention your Aadhaar Number to go to the next page.
- Enter relevant information like name, residential address, income, etc.
- Tick off the term and conditions check box.
- Select the ‘Save’ option, and your application will be submitted provisionally.
- After the application process, you can check its status through the same portal.
Following are the steps to apply for PMAY scheme offline:
- Visit your state or UT’s Common Service Centre (CSC).
- Duly fill up the application form with right information.
- Pay nominal application fees of Rs.25 plus GST.
- Submit the form alongside necessary documents.
After the verification process is complete, you can check your name on the PMAY list and apply for a home loan under this scheme.
Hence, after knowing about the benefits and application process of PMAY scheme, it will be easier to invest in a home without burdening your finances. However, your name should be on the list of PMAY beneficiaries to avail the benefits of this scheme.
Micheal Anderson is a blogging expert.