All You Need To Know About Pradhan Mantri Awas Yojana

A roof over the head, whether big or small, has always been considered a distant dream and a valuable possession for individuals from economically weaker classes. A Pradhan Mantri Awas Yojana is a big step in the direction of making this dream of owning a home come true for these citizens of India.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) is an Indian government initiative that was launched by PM Narendra Modi in June 2015 and is based on the concept of “housing for all”. The idea behind this initiative is to provide affordable housing to the urban and rural poor of the country. The government proposed to build over 2 crore homes in urban areas by the year 2022 for citizens who come under economically weaker sections and low-income groups. The tenure for loans under the PMAY can go up to 20 years. This scheme also focuses on making housing affordable for demographics such as women, scheduled castes, scheduled tribes, and minority groups.

Depending on the region it caters to, PMAY is divided into two parts

• Pradhan Mantri Awas Yojana Urban (PMAY-U)
• Pradhan Mantri Awas Yojana Gramin/Rural (PMAY-G/PMAY-R)

Pradhan Mantri Awas Yojana Urban (PMAY-U)

The PMAY-U scheme launched in June 2015 addresses the issue of housing shortage among the Economically Weaker Sections (EWS) and Middle Income Groups (MIG).

Listed below are the three phases of PMAY-U which are envisioned from start to completion of houses construction.

• Phase 1 - April 2015 to March 2017, 100 cities and union territories
• Phase 2 - April 2017 to March 2019, 200 more cities and union territories
• Phase 3 - April 2019 to March 2022, remaining cities to be covered.

Pradhan Mantri Awas Yojana Gramin/Rural

The PMAY-G scheme, known as Indira Awas Yojana until 2016 comes under the Ministry of Rural Development. This scheme is focused on providing affordable housing to the citizens living in rural parts of India. Houses under the PMAY-G scheme are provided to the people who do not own a house or those living in kutcha houses.

Eligibility Criteria for PMAY

The important conditions to be kept in mind while applying for a loan under the PMAY scheme are

• The maximum age limit for beneficiaries is 70 years at the end of the loan repayment period.
• Family income limit based on different classes eligible for the PMAY scheme is
  
  

  Classes	Family income limit
  EWS (Economically Weaker Section)	₹3 Lakhs per annum
  LIG (Lower Income Group)	₹6 Lakhs per annum
  MIG-1 (Middle Income Group-1)	₹6-12 Lakhs per annum
  MIG-2(Middle Income Group-2)	₹12-18 Lakhs per annum

• Anyone from the LIG, EWS, and MIG groups who own a home or property in their name or their family member’s name in any part of India are not eligible for benefits under this scheme.
• To be able to buy a home under this scheme, the applicant should not have availed of a subsidy under any other central/state government housing scheme.
• PMAY benefits can not be availed for already built houses.

Benefits of PMAY

Some of the key benefits of the PMAY scheme are mentioned below

1. Ground floor house accommodations preferred for senior citizens and differently-abled citizens.
2. Subsidized home loan interest rates provided to the eligible applicants for a term of 20 years.
3. In-situ rehabilitation of slum dwellers by providing them concrete residences.
4. Affordable housing for people from all walks of life.
5. Environment-friendly homes are built under this scheme

Documents Required for PMAY

Listed below are few documents required while applying for a loan under the PMAY scheme

• Properly filled and duly signed loan application form
• Identity proof document (Aadhar card, PAN card, voter ID card, or Driving license)
• Address proof document (Aadhar card, Passport, voter ID card, or Rent agreement)
• Property allotment letter or any property related documents
• Proof of income

Bottom Line

With its mission statement “housing for all”, the PMAY scheme has played a vital role in making housing affordable for people from all walks of life. If you ever dreamt of having your own home and meet the eligibility criteria of the PMAY scheme. Now would be the right time to apply for a housing loan and fulfill that ever-distant dream.