Pradhan Mantri Awas Yojana (PMAY) Eligibility, Benefits 2023

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Hello friends!! Today we are going to tell you about one more Government Scheme which was made to provide Home/Awas facilities to poor citizens at affordable prices. The name of that scheme is Pradhan Mantri Awas Yojana (PMAY).

In this article, we will try to give you the complete details about the PMAY scheme so please read the article till the end.

What is Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Y­ojana (PMAY) was ­launched on 25th June 2015 by the prime minister of India. It is also known as “Housing for All By 2022”. This is an initiative taken by the Government of India to provide sustainable and affordable housing for economically weaker sections of society. It is a Credit Linked Subsidy Scheme (CLSS) which means PMAY scheme beneficiaries are eligible for interest subsidy if they want a loan to buy or construct a new house.

PMAY scheme focuses on the target construction of about 2 crore houses at an affordable price by 31 March 2022. The Pradhan Mantri Awas Yojana (PMAY) has been extended up to 31 December 2024. The total target of pucca houses has also been revised to 2.95 crore houses.

Types of Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana is divided into two primary types depending on the area where the subsidy scheme is extended i.e. Pradhan Mantri Awas Yojana Urban (PMAY-U) and Pradhan Mantri Awas Yojana Gramin (PMAY-G).

Pradhan Mantri Awas Yojana Urban (PMAY-U)

Pradhan Mantri Awas Yojana Urban is made for poor people who live in urban areas and can’t afford their own houses for a living. PMAY-U division around 4300 cities and towns are comprised across India.

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

The PMAY is not limited to only cities and towns. It also covers villages, slums and other rural areas. For this, a separate division has been made that is called Pradhan Mantri Awas Yojan Gramin (PMAY-G).

Objectives of Pradhan Mantri Awas Yojana

  • Housing is a basic need of life but with inflation property and land prices are increasing day by day in India due to this it remains a fantasy for most. PMAY scheme helps you in becoming a homebuyer on easy condition and helps to make housing affordable to all.
  • The objective is to render housing for all by 2022 as the nation celebrates 75 years of its independence by that time.
  • It also aims to make housing available to specific demographics, such as economically challenged groups, women and minority people including Scheduled Caste and Scheduled Tribes.
  • Affordable houses will be constructed in selected cities and towns using environment-friendly construction methods for the benefit of the urban poor of India.
  • The objective is to provide interest subsidy under the Credit Linked Subsidy Scheme to its beneficiaries if they use the loan to buy or construct a house.

Features of Pradhan Mantri Awas Yojana

The features of Pradhan Mantri Awas Yojana are as follows:

  • PMAY scheme provides affordable housing to economically challenged individuals and families.
  • Ground floors are preferably allocated to senior citizens and differently-abled persons.
  • Usage of sustainable and eco-friendly technology for construction.

Eligibility Criteria for Pradhan Mantri Awas Yojana

The eligibility criteria for Pradhan Mantri Awas Yojana are as follows:

  • PMAY scheme is available for the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I) and Middle Income Group-II (MIG-II).
  • The PMAY subsidy is provided on loans provided by both housing finance organizations and banks. National Housing Bank (NHB) and Housing & Urban Development Corporation (HUDCO) are the two central agencies that disburse the loans.
  • The deed or property papers should bear the name of the woman. Owners must be female to avail of the scheme. Only when there is no woman in the family can this rule be surpassed.
  • PMAY is available only for the purchase of the new property. Also, the applicant should not have any other pucca properties at the time of applying for the said credit-linked scheme.
  • The house or property for purchase must belong to one of the areas, towns, villages, or cities as per the 2011 census.
  • Beneficiaries should not have already availed of benefits under Pradhan Mantri Awas Yojana or any other credit-linked subsidy scheme from any financial institution.
  • The PMAY subsidy is also available for renovation and even construction of additional rooms including bathrooms, kitchen, etc.

Beneficiaries under Pradhan Mantri Awas Yojana

  • A beneficiary family will comprise the wife, husband, single daughters, and/or sons who are unmarried.
  • A beneficiary family should not be an owner of a pucca house either in their own name or on behalf of their family member in any part of the country (India).
  • Individuals availing loans to buy residential property or land or to construct homes would be eligible for interest subsidies.
  • Loan interest subsidy is only available for individuals belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG) or Middle Income Group (MIG).

Income Range for Various Economic Groups under PMAY

Economic SectionAnnual Income Range
Economically Weaker Section (EWS)Up to Rs. 3 Lakhs
Low-income Groups (LIGs)Between Rs. 3 -6 Lakhs
Middle Income Groups (MIG I)Between Rs. 6-12 Lakhs
Middle Income Group (MIG II)Between Rs. 12 -18 Lakhs

Note:

If the family income of a person exceeds Rs. 18 Lakh per annum, they will not be eligible for subsidies under the Pradhan Mantri Awas Yojana.

The annual income of the family is the key determinant for subsidy purposes. Family Income calculation takes into account the income of all members of a family from various sources, including investments, jobs and others.

The applicant needs to submit an affidavit supporting his income proof to be recognized as a LIG or EWS beneficiary under the Scheme.

Eligibility Parameters for Pradhan Mantri Awas Yojana

ParticularsEWSLIGMIG IMIG II
Total household/family incomeUpto Rs. 3 LakhsRs. 3-6 LakhsRs. 6-12 LakhsRs. 12-18 Lakhs
Max loan tenure20 Years20 Years20 Years20 Years
Max dwelling unit carpet area30 sq. m.60 sq. m.160 sq. m.200 sq. m.
Max loan amount allowed for subsidyRs. 6 LakhsRs. 6 Lakhs  Rs. 9 LakhsRs. 12 Lakhs
Subsidy6.50%6.50%4.00%3.00%
Discount rate for net present value (NPV) calculation of interest subsidy (%)9.00%9.00%9.00%9.00%
Max. interest subsidy amountRs. 2,67,280  Rs. 2,67,280Rs. 2,35,068Rs. 2,30,156

Let’s understand with an example how Pradhan Mantri Awas Yojana works and affect the interest rate and home loan repayment.

For instance, Mr. Om Prakash belongs to MIG-I and is buying a house worth Rs. 50 Lakhs. He has to pay the mandatory 20% down payment himself, which amounts to Rs. 10 Lakhs. For the remaining Rs 40 lakh, Om Prakash opted for a home loan for which the interest rate charged is 8.50% per annum.

Since he belongs to MIG-I so Rs. 9 Lakhs from the loan amount is eligible for interest rate subsidies. It means he will have to pay the 8.50% interest on only Rs. 31 Lakhs, while on the remaining amount he will bear an interest of 4.00% per annum. However, the subsidy amount cannot exceed Rs. 2.35 Lakhs.

Bank List for Pradhan Mantri Awas Yojana

You can get a subsidized loan under the Pradhan Mantri Awas Yojana scheme from any scheduled Commercial Bank, Housing Finance Company, State Cooperative Bank, Urban Cooperative bank, Regional rural bank, or any other institution as may be identified by the Ministry of Housing and Urban Affairs (MoHUA).

Documents Required for Pradhan Mantri Awas Yojana

The following documents are required for applying PMAY scheme:

Types of DocumentsSalariedSelf Employed
Proof of Identity
  • PAN Card
  • Aadhaar Card
  • Voter ID Card
  • Driving License Passport
  • Any other Photo Identity Card issued by a government authority
  • PAN Card
  • Aadhaar Card
  • Voter ID Card
  • Driving License Passport
  • Any other Photo Identity Card issued by a government authority
Proof of Address
  • Passport
  • Aadhaar Card
  • Voter Id card
  • Utility Bill
  • Rent Agreement
  • Life Insurance Plan
  • Residence Address Certificate
  • Property Tax Receipt
  • Saving Bank Account Statement or Credit Card Statement (should not be older than 3 months)
  • Passport
  • Aadhaar Card
  • Voter Id card
  • Utility Bill
  • Rent Agreement
  • Life Insurance Plan
  • Residence Address Certificate
  • Property Tax Receipt
  • Saving Bank Account Statement or Credit Card Statement (should not be older than 3 months).
Proof of Income
  • Previous 2 months salary slip Previous 6 months bank statement Latest Form 16 / ITR
 
  • Income Tax Returns for the last 2 years Balance Sheet and Profit & Loss statement Last six months statement of your current account
 
Property Documents
  • Copy of Agreement to Sale Copy of complete chain property documents Copy of Receipt of payment Copy of the Allotment Letter
  • Copy of Agreement to Sale Copy of complete chain property documents Copy of Receipt of payment Copy of the Allotment Letter

How to Apply for Pradhan Mantri Awas Yojana

  • Login to the Official Website of PMAY at https://pmaymis.gov.in/
  • Choose Slum Dwellers or Benefits Under 3 Components under the Citizen Assessment tab (whichever is applicable).
  • Once the Aadhar Number is submitted, you will be taken to the application page.
  • Fill in all required details on this page, including income details, personal details, bank account details and other required information.
  • Once you filled in all the details, scroll down, enter the captcha and click on the Save button.
  • As soon as click on the ‘Save’ option, you will find a unique application number.
  • You must download the filled-in application form.
  • Finally, you can submit the form at your nearest Common Service Centre (CSC) office or a financial institution/bank offering you a home loan. You have to submit all the required documents along with the form.

How to Check Beneficiary Wise Released Funds For PMAY

  • Visit the Official Website of PMAY at https://pmaymis.gov.in/
  • Select the Beneficiary Wise Fund Released option under the Search Beneficiary tab.
  • Enter Mobile No. and click on Send OTP option.
  • After that, you will receive one OTP on your Mobile which you have to Submit.
  • After entering the information, Beneficiary wise funds released (Central Assistance + State Share + ULB Share) will reflect on the screen.

How to Check Beneficiary Detail For PMAY

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