Things You Must Know About PMAY

The Pradhan Mantri Awas Yojana, or PMAY, is a housing scheme that was set in motion by our current prime minister Narendra Modi in 2015. The scheme was started to build more than two crore houses within 2022 for people who belong to the lower and middle class in both rural and urban areas. The prime focus of these schemes is to improve the lifestyle and provide a permanent house to the economically weaker classes of the society.

The PMAY scheme gives a certain amount of subsidy on the interest of the home loans to the peoples who are from EWS, LIG, MIG-1, and MIG-

2. However, the home loan subsidy can only be provided for purchasing, contracting, or expanding a house. Apart from providing housing for all, the scheme also focuses on the construction of eco-friendly houses.

Two Major Sections Of PMAY

This scheme has been divided into two sections based areas -

PMAY (Urban)

PMAY (Gramin)

The PMAY-U focused on the urban areas and cities, which includes the slum population. At the same time, PMAY-G is for the population who belong to rural areas.

PMAY-U

The scheme in urban areas is implemented with the help of the Ministry Of Housing And Urban Affairs. Thus they aim to elements congested slum areas and replace them with permanent housing facilities. The PMAY schemes for urban areas has shown progress in three phases -

Phase 1- It is between 1st April 2015 and March 2017, which cover almost 100 cities of different states and Union Territories.

Phase 2- It is between April 2017 and March 2019, which covers additional 200 towns and cities.

Phase 3- It is between April 2019 and March 2022, which is focusing on covering the remaining cities.

PMAY-G

The implementation of Pradhan Mantri Awas Yojana Gramin is entrusted to the Ministry of Rural Development so that they construct pucca houses in rural regions.

The scheme will be financially supported by both State and Central Government in the plain region in a ratio of 60:40, while the ratio in the special state of hilly northeastern areas at a ratio of 90:10. Apart from providing pucca houses, the scheme also covers some additional benefits of providing LPG gas, electricity, drinking water, etc.

Credit Linked Subsidy Schemes

The two primary features of the PMAY scheme are - firstly, it provides permanent housing facilities in LIG, EWS, and MIG. The second crucial feature is the introduction of Credit Linked Subsidy Schemes (CLSS) on the home loans taken for construction, renovation, and expansion of houses.

Eligibility Requirements

The applicant or his family members must not possess a pucca house in the region of India.

If the applicant is married, then any of the spouses or both of them can get joint ownership of the house.

The applicants are not allowed to access assistance from central through these schemes of the government.

The family of the applicant may include, wife, husband, unmarried children.

The scheme is only available to four categories which include -

EWS/ LIG

If your yearly earnings are below the range of ₹6 lakhs, then you belong to EWS/ LIG category. The maximum amount of subsidy you can get can extend up to Rs 6 lakhs, and the maximum interest on subsidy will be 6.05%. While the limit of carpet area for constructing houses is 60 sq. Meter.

MIG-1

If your yearly earning is varying between ₹6-12 lakhs, then you will belong to the MIG-1 category. The maximum subsidy allowed to these categories is ₹9 lakhs, and interest on subsidy can extend up to 4%. The limit of allowed carpet area is 90 sq. meter.

MIG-2

If your earnings vary between ₹12-18 lakhs, then the interest on subsidy allowed is 3%, and the maximum amount of subsidy you can receive is ₹12 lakhs. The carpet area limit can extend up to 110 sq. meters.

So you must check which category you belong to before you apply for a PMAY home loan.