Do you know what is the PMAY? If owning a pucca house is your dream, then the PMAY or Pradhan Mantri Aawas Yojana (PMAY) is for you. The PMAY is a housing scheme by the Government of India, which was launched in June 2015. It aims to help realise the dream of crores of Indians, specifically those in the lower income groups, of owning their own pucca house. It is meant to attract the Middle-Income Groups or MIGs and Lower Income Groups or LIGs who are also referred to as Economically Weaker Sections or EWS of the country. Once your PMAY status and eligibility are ascertained, you too can avail of this scheme.
The scheme is made available to the people with annual household income levels as under:
- EWS: Up to Rs.3 lakh
- LIG: Between Rs.3 lakh and 6 lakh
- MIG I: From Rs.6 lakh to 12 lakh
- MIG II: From Rs.12 lakh to 18 lakh
The scheme has an urban variant or the PMAY-U and a rural or grameen variant which is PMAY-G. The population segments catered to by this scheme are mainly the urban migrant labour, workers in blue collared jobs, SCs, STs, OBCs, women, widows of paramilitary and ex-military personnel, transgenders, and senior citizens (up to 70 years of age).
The subsidy provisions by income group and the limits in the loan sum subsidised is:
- 6.5% for EWS (up to a loan amount of Rs.6 lakh)
- 6.5% for LIG (up to a loan amount of Rs.6 lakh)
- 4% for MIG I (up to a loan amount of Rs.9 lakh)
- 3% for MIG II (up to a loan amount of Rs. 12 lakh)
The PMAY-U scheme can be utilised by four ways:
- Credit Linked Subsidy Scheme (CLSS)—this defines the subsidised loan amount and the limits to the PMAY subsidy as well as the carpet area for those who are PMAY eligible. The applications for subsidy benefits for the MIG groups are not being accepted beyond fiscal year 2020-21. The applications for subsidy benefits for the LIG groups continue to be accepted till the closure of the fiscal year 2021-22. The application for the scheme can be made by an individual earning adult or a family (with one earning member). If an earning member or their family already owns a pucca house, they are prohibited from applying to this scheme under CLSS. (They, however, may apply for the enhancement facility, if they fall within the specified income brackets).
- The scheme can be utilised by a husband, or his wife, or unmarried son, or unmarried daughter. There is a restriction for availing of this scheme for an earning adult to once only. Moreover, they may refrain from applying to this PMAY scheme if they have already utilised some other housing scheme by the Government earlier.
- The In-Situ Slum Redevelopment (ISSR) has the target to redevelop slum areas into pucca housing complexes with better infrastructure like potable water, sanitation facilities, LPG connection, and electricity.
- The Affordable Housing Partnerships (AHP) encourages a public-private partnership in housing projects for the LIG and MIG segments.
- If anyone does not qualify for the scheme under the above three routes, they may explore the enhancement route for an upgrade to their existing house to a pucca house, up to a subsidy benefit of Rs.1.5 lakh loan sum from the Central Government.
The Rural scheme is a responsibility shared by both the Centre and the State and is designed along similar lines with a similar purpose as the urban one.
You can track your PMAY eligibility for your PMAY home loan by following the steps mentioned below:
- There is pre-declared PMAY list on the PMAY website where you can search for your name with the help of your Aadhar number on the ‘Search Beneficiary’ tab. This will tell you your eligibility.
- After that, you can apply for the scheme on the same portal www.pmaymis.gov.in. Download the form from the Citizen Assessment tab, fill in all the information asked for, and attach document proofs. You also have the option of applying offline via the Common Service Centres (CSC). Existing home loan borrowers, who haven’t availed of this scheme yet but are eligible, can also apply for this scheme.
- Next, apply for the PMAY home loan at a suitable lending institute and attach your PMAY application with it. There is no restriction under this scheme to apply for a loan larger than the subsidised sum. The total loan eligibility, however, will be evaluated by the lender in concern by their usual home loan applicant assessment process. The non-subsidised part of the loan will most likely have a higher rate of interest as determined by the lender. After that, the application is processed, verified, and checked along with your PMAY status. Then, the subsidised part of the loan sum is disbursed to your bank account under the PMAY scheme by the Government within three to four months.
If you are not sure about your PMAY status, check your eligibility now before the scheme sees a sunset.