Pradhan Mantri Awas Yojana Scheme

Pradhan Mantri Awas Yojana or PMAY is a social security home loan scheme introduced in June 2015 with the objective to provide affordable housing for all. It aims to provide accommodation with basic facilities like water connection, 24*7 power supply and toilet facilities to the economically weaker sections of society by the end of the financial year 2022.

Classification of PMAY scheme:  

Under this scheme, the government has classified its focus area in 2 parts.

  • Pradhan Mantri Awas Yojana for Gramin/Rural: The government aims to provide Pucca houses with basic facilities such as sanitation, power supply to the rural residents of India.
  • Pradhan Mantri Awas Yojana for Urban: It aims to provide affordable housing with basic requirements to about 4,500 towns and cities under this scheme under three phases till 2022.

Key Features of PMAY scheme: 

  • The government’s primary focus is the redevelopment of In-situ projects by providing them with urban spaces by granting Rs.1 lakh per house.
  • Under this project, it also aims to provide financial assistance of Rs. 1.5 lakh to every dwelling under the central support.
  • Providing the credit-linked subsidy up to 6.5% for availing a home loan. The interest subsidy can be availed up to a maximum loan tenure of 20 years.
  • The government further encourages minorities such as SC, ST to avail a home loan at subsidized interest rates. Women are also provided loans at concessional interest rates with zero processing fees.
  • All the houses have to use good quality and eco-friendly materials for the construction of houses as per the guidelines of RERA, National Building Code and National Disaster Management Authority.

Eligibility for availing the credit-linked subsidy:

  • Home loan borrowers can avail the subsidy for home loan at a subsidized interest rate of 6.5%.
  • The amount of home loan varies based on your income level. The economically lower income groups who have income up to Rs.6 Lakhs can avail a home loan up to Rs. 6 lakhs. The loan amount for people who are earning between Rs. 6 Lakhs to Rs. 12 Lakhs is Rs. 9 Lakhs.

The table below summarises the eligibility criteria:

Groups Interest Subsidy Loan Amount Net usable carpet area
EWS 6.50% Upto 3 lakhs 30 square meters
LIG 6.50% Up to 6 Lakhs 60 square meters
MIG 1 4.00% Up to 9 Lakhs 160 square meters
MIG 2 3.00% Up to 12   Lakhs 200 square meters

Process for availing the PMAY subsidy:

You can register for the CLSS by visiting the nearest Common Service Centre and filling the application form for the support along with the required fees. The home loan borrowers can apply for the PMAY scheme online by following these steps.

  1. Visit the pmaymis.gov.in.
  2. Next, under the citizen assessment option, Choose between ‘ For slum dwellers’ and ‘Benefit under the other three components’.
  3. Now enter the Aadhar details on the page displayed.
  4. Next, fill in necessary information such as name, contact number and others in the application form.
  5. After filling the form, enter the Captcha code and click on the Save button.
  6. You can check the online status of your application in a few days after the verification of your application form and eligibility for the subsidy.

Top PMAY Banks List:  

These are some of the banks from which you can avail a home loan under PMAY scheme.

Top PMAY Banks List

SBI HDFC Bank of Baroda
ICICI Bank Ltd. Axis Bank Ltd. Karnataka Bank Ltd.
Karur Vysya Bank Ltd. LIC Housing Finance Bajaj Housing Finance Limited
Kotak Mahindra Bank Yes Bank Fullerton
Indiabulls IIFL Federal Bank

Conclusion: Every individual can fulfil the dream of having their own house by getting a subsidy for the home loan under PMAY.

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