A Brief About Pradhan Mantri Awas Yojana


A Brief About Pradhan Mantri Awas Yojana

 by Anamika Verma 

Pradhan Mantri Awas Yojana (PMAY) Scheme is one of the best schemes for all income groups. Want to know how? Read to know more about it!

Pradhan Mantri Awas Yojana (PMAY) was launched by the Government of India in June 2015. It is a home loan scheme launched by the Central Government and was launched to provide housing facilities to the poor people.

The theme of PMAY scheme is ‘Housing for All’. The objective is to provide affordable housing to people with the aim of building 20 million affordable houses by 31st March 2022. It caters to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I) and Middle Income Group-II (MIG-II) of people.


Features of Pradhan Mantri Awas Yojana Scheme

PMAY Scheme has two parts – Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awas Yojana (Gramin) (PMAY-R) for the rural poor people.

PMAY Scheme has two major key aspects:

1.  To improve the condition of slum areas by building houses for slum dwellers in collaboration with private builders.

2.  To provide a credit-linked subsidy to weaker and middle-class sections on loans taken for new construction or for the renovation of existing homes.

Below are some of the key features of this scheme:

         Interest subsidy of 6.50% p.a. up to a loan amount of Rs.6 lakhs for 20 years.

         It is applicable for people who are planning to by their first house.

         A woman has to be the owner/co-owner of the property.
         The construction of the house should be completed within 36 months.

         The actual subsidy amount will be approved by the National Housing Bank (NHB).

         There is no cap on the loan amount or the cost of the property.
         The Net Present Value (NPV) of the interest subsidy is calculated at an interest rate of 9%.

         The carpet area of the house should be within the following limits:

    30 sq. mt. for EWS with annual income up to Rs.3 lakhs p.a.

    60 sq. mt. for LIG with annual income between Rs.3 lakhs to Rs.6 lakhs p.a.

    120 sq. mt. for MIG-I with annual income between Rs.6 lakhs to Rs.12 lakhs p.a.

    150 sq. mt. for MIG-II with annual income between Rs.12 lakhs to Rs.18 lakhs p.a.

Phases of Pradhan Mantri Awas Yojana Scheme

The Government has planned to complete this scheme in three phases:

1.  Phase I – Phase I to start from April 2015 to March 2017 and will cover 100 cities of the country.

2.  Phase II – Phase II to start from April 2017 to March 2019 and will cover 200 cities.

3.  Phase III – Phase III to start from the year 2019 to the year 2022 and will cover the remaining cities of India.

Benefits of Pradhan Mantri Awas Yojana Scheme

         The Government provides an interest subsidy for buying a house under this scheme.

         It gives a preference to female customers for the allotment of houses.

         It helps in the rehabilitation of slums.

         For ground-floor houses, preference is given to the people who are disabled or aged.

         Apart from construction, it also provides loans for renovation or extension of the house.

         The PMAY scheme will help to improvise the housing facilities for the urban and rural poor people.

The Bottom Line

With the tagline of ‘Housing for All’, it will actually cover all the cities of India and provide affordable housing to all the weaker and middle section groups of people. 

There are certain PMAY eligibility criteria that you need to fulfill to avail the benefits of it.

This scheme will provide assistance for providing houses to all eligible families/beneficiaries by 2022. With its credit linked subsidy, the PMAY scheme will prove to be a boon for the country.



Contact Author at anamikavverma@gmail.com

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