PRADHAN MANTRI AWAS YOJANA (PMAY) SCHEME
AWAS YOJANA

Amongst the various initiatives taken by the Government of India to improve the infrastructural development in the country, Pradhan Mantri Awas Yojana is one of them. The PMAY scheme was brought to picture in India in 2015, to accomplish the goal of affordable housing. The scheme aims to provide budget-friendly housing to all by the end of the year 2022. Not only does the scheme provide affordable housing but also promotes the construction of houses through eco-friendly ways. The scheme offers a subsidy scheme for home loans borrowers who are economically underprivileged in society. The subsides as per the scheme are provided through the Credit linked subsidy scheme. 

The scheme is specifically designed for the economically weaker sections like LIG or the Lower Income Group, EWS or the economically weaker section, the MIG-1 or the middle-income group-1 and the MIG-2 or the Middle-Income group 2. The annual income of the EWS and the LIG group is Rs 6 lakhs; however, it is up to Rs 12 lakhs for the Middle Income group-1 and Rs 18 lakhs for the Middle Income group-2. Further, an interest subsidy of 6.50% is provided to the EWS and LIG income groups, 4% for the MIG-1 category and 3% for the MIG-2 category. Further, the loan amount granted to the EWS and LIG category is Rs 6 lakhs, while it is Rs 9 lakhs and Rs 12 lakhs respectively, for the MIG-1 and MIG-2 category. The loan to all these categories is granted for a maximum tenure of 20 years. 

The Pradhan Mantri AwasYojana provides special benefits to the differently-abled and senior citizens, by allocating them ground floors for their convenience. Apart, the scheme offers special benefits to women home loan borrowers and the marginalized sections of the society like Scheduled Castes and the Scheduled Tribes. Further, the benefits of the scheme can be availed across all cities and towns of the country. However, to avail the PMAY benefits, one needs to fulfil the eligibility criteria for the same:

  • The benefits of the PMAY can be availed if the applicant or any member of his or her family does not own a pucca house signed under their name. 
  • Also, it is important that the applicant’s family or the applicant himself has not availed any central or state government-funded scheme previously.
  • If a married couple applies for the PMAY subsidy, then only a single subsidy can be availed by them both in the form of a joint subsidy, or a PMAY subsidy owned by the couple. But no two different subsidies can be availed by the couple. 
  • If an applicant hails from the LIG or the EWS category, then they must bring in a woman co-applicant. However, for the MIG-1 and MIG-2 category, it is their choice to bring in a co-applicant or not. 
  • PMAY subsidy cannot be availed on the already constructed houses. It is granted on the construction or the buying of new houses. Also, the construction of houses has to be completed within 36 months or three years from the date on which disbursement of the loan amount takes place.

 

PMAY housing subsidy can be availed from various home loan lenders, through both offline and online mediums. The subsidy has made it easy for home loan buyers of all potentials, to fulfil their housing dreams. Thereby, it is a clear sight of the idea that the authorities have successfully identified that the development of the country lies in the development of the people. The housing infrastructure will enhance the country’s development by adding more to the economy. 


Summary:

PMAY subsidy is a housing loan subsidy offered to income-based underprivileged sections of the society. It was launched in 2015 with an aim to bring affordable housing based on eco-friendly construction methods to all by the year 2022 ends. The scheme is specifically designed for beneficiaries like LIG or the Lower Income Group, EWS or the economically weaker sections, MIG-1 or the Middle Income Group-1 and the MIG-2 or the Middle Income Group-2. 

 

Income group Annual Income  Maximum Loan amount Subsidized ROI
LIG Up to Rs 6 Lakhs Rs 6 Lakhs 6.50%
EWS Up to Rs 6 Lakhs Rs 6 Lakhs 6.5%
MIG-1 Up to Rs 12 Lakhs Rs 9 Lakhs 4%
MIG-2 Up to RS 18 Lakhs Rs 12 Lakhs 3%

 

The scheme puts forth the interest of senior citizens, differently-abled people, by giving them special preference by allotting the ground floors to them. However, to avail the scheme, one needs to meet certain eligibility parameters. To avail the PMAY subsidy, the applicant should not have availed any Central or State Government-regulated schemes previously. Also, the applicant or his family member should not have availed the ownership of any house. Apart, if the applicant belongs to the LIG or the EWS category, then it is compulsory for him to bring in a woman co-applicant. If one follows the above-mentioned eligibility, fulfilling the housing dream is not far from reality.