On June 1, 2015, the Pradhan Mantri Awas Yojna (PMAY) was launched to meet the virtuous concept of housing for all in India. The scheme’s goal is to construct two crore dwelling units by 2022. The strategy aims to promote affordable housing for beneficiaries belonging to different financial backgrounds. Continue reading if you want to know what is PMAY, its features, and its benefits.

What is PMAY Scheme?

The PMAY plan is a credit-linked subsidy program that intends to cover individuals in India’s urban and rural areas. This includes people from the Economically Weaker Section (EWS), the Low Income Group (LIG), and the Middle Income Group (MIG). The scheme’s goal is to encourage the use of environmentally friendly building materials in the construction of housing units.

The plan provides an upfront subsidy on the principal amount due on a home loan for the construction/acquisition of the house, including the repurchase. There are two main sections of the PMAY scheme, these are:

1)  Pradhan Mantri Awas Yojna Urban (PMAY – U)

It is administered by the Ministry of Housing and Urban Affairs and covers all towns as per the 2011 census. The PMAY-U programme will be implemented in three stages:

  • April 2015 – March 2017 – Covers 100 cities from different States and UTs.
  • April 2017 – March 2019 – Covers 200 additional cities
  • April 2019 – March 2022 – Rest of the cities

2) Pradhan Mantri Awas Yojna Rural (PMAY – R)

The Ministry of Rural Development is implementing it to provide affordable housing in rural India. The primary objective is to provide pucca houses to the homeless or live in dilapidated or kutcha houses.

Who Can Apply Under PMAY?

The four categories under the PMAY scheme are:

  1.  Economically Weaker Section or EWS 
  2.  Low Income Group or LIG 
  3.  Middle-income Group or MIG-I & MIG-II 
Income slabUp to Rs.3 lakhRs. 3 – 6 lakhRs. 6 – 12 lakhRs. 12 – 18 lakh
Interest subsidy6.5%6.5%4%3%
Max. Home loan amountRs. 6 lakhRs. 6 lakhRs. 9 lakhRs. 12 lakh
Max. Interest subsidyRs. 2.67 lakhRs. 2.67 lakhRs. 2.35 lakhRs. 2.30 lakh
Carpet Area30 sq. m60 sq. m.160 sq. m.200 sq. m.

How is it Beneficial to Seniors and Differently-Abled?

The preference under the PMAY scheme is given to:

  • Senior Citizens and Differently-abled individuals are given preferential housing on the ground floor, depending on the circumstances.
  • Individuals belonging to Scheduled Castes and Scheduled Tribes
  • Provisions are also made for transgender people and widows.

How to Apply For PMAY Scheme?

An individual can apply for the PMAY scheme both online and offline. For the online process, follow the method mentioned below.

Step 1: Visit PMAY webpage and get the application form.

Step 2: Enter your 12 digit Aadhar number for verification on Citizen Assessment Option.

Step 3: Once verified, enter all personal details and click the save button.

Step 4: After that, successful applicants receive the application number for future reference. The PMAY scheme is an ambitious step toward providing affordable housing to the most vulnerable people in society. The subsidy-based scheme assists in lowering loan payments and making the dream of owning a home a reality.

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