Pradhan Mantri Awas Yojana: Know Benefits, Eligibility, Step-by-Step Process To Apply PMAY

Pradhan Mantri Awas Yojana (PMAY), launched on 1st June 2015, is a flagship housing scheme by the government of India that aims to provide affordable housing to all citizens of the country. On Monday, 10th June 2024, the Centre decided to build 3 crore additional houses under the PMAY scheme. The announcement was made during the first Cabinet meeting of the third consecutive government of Prime Minister Narendra Modi. The scheme has two segments: Urban and Rural housing schemes. In the last 10 years, 4.21 crore houses have been constructed under PMAY for eligible families.

“PMAY has been a crucial initiative in addressing the housing shortage across both urban and rural areas. The scheme offers essential credit-linked subsidies, helping eligible families to achieve homeownership and access basic amenities significantly improving their living conditions,” says Rajat Likhyani, Principal Partner at Square Yards.

“The government is driving the PM Awas Yojana in the right direction by addressing the housing needs of rural India and at the same time creating employment opportunities in these regions,” adds Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India.

As per the recent announcement, out of the three crore houses, two crore will be built under PMAY-Gramin (Rural), while 1 crore under PMAY-Urban Yojana.

Also read; Pradhan Mantri Awaas Yojana Gramin - PMAYG: All You Need To Know

Eligibility under PMAY

The eligibility under this scheme is determined based on specific income categories and the homeownership status of the applicant. You should meet the following criteria to be eligible for PMAY:

• First, families with an annual income of up to Rs 18 lakhs are eligible under different categories within this yojana

• Second, the applicant or any of the family members should not own a pucca house (a permanent, all-weather dwelling unit) anywhere across the country.

The eligibility criterion of this scheme is targeted to aid economically weaker sections and families/individuals who do not have a permanent house of their own. PMAY further offers subsidised interest rates and financial aid to enable eligible applicants to acquire or build a pucca house.

It is also important that the beneficiaries have not availed of any central assistance or benefits from any other housing scheme either from the state or the central government before applying for PMAY.

Centre vs State ratio under PMAY

The Centre and states divide the expenses of building houses under PMAY in a 60:40 ratio in the case of plain areas. With northeastern states, the ratio stands at 90:10, including two Himalayan states and the UT of Jammu and Kashmir. The Centre takes up 100 per cent of expenses in the case of other Union Territories (this includes the UT of Ladakh)

Earlier in February while presenting the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman had announced the construction of 2 crore additional houses under PMAY-G in the coming five years.

Benefits under PMAY

Under PMAY, the interest rate subsidies are extended to eligible applicants based on their income categories. This is how the subsidy rates and the maximum loan amounts vary for each income category:

• For economically weaker sections (EWS) and Low-Income Groups (LIG) the interest rate subsidy stands at 6.50 per cent per annum. The maximum Loan for Subsidy under PMAY-Gramin can be extended up to Rs 6 lakh.

• Middle-Income Group 1 (MIG-1): Interest Subsidy Rate is extended at 4 per cent annually.

• Maximum Loan for Subsidy under PMAY-Urban is Up to Rs 9 lakh. 

• For middle-income group 2 (MIG-2): Interest Subsidy Rate is 3 per cent per annum

The maximum Loan for Subsidy (under PMAY-Urban) is up to Rs 12 lakh.

How to apply for the PMAY scheme?

You can apply for Pradhan Mantri Awas Yojana (PMAY) via both online and offline modes. This is how you can apply for the scheme online:

• First, go to the official government website of PMAY (pmaymis.gov.in/)

• Then go to the option of ‘Citizen Assessment’ under the ‘Menu’ tab

• Once on this page, enter your Aadhar Card Number in the specified area

• When the Aadhar Number is verified, you will be redirected to the application page

• After this, you can proceed with entering all required details on this page. This would include income, personal, bank account details and other important information. Make sure to double-check all your details to avoid errors.

• After ensuring all details are correct, choose the ‘Save’ option

Once the application is saved you can review the submitted version and download the filled-in application form. Applicants can deposit the form at their nearest CSC office or a financial institution offering the service in regards to this scheme.

The houses built under Pradhan Mantri Awas Yojana (both urban and rural) are built constituting basic facilities like toilets, LPG supply connection, electricity connection/supply, tap water accessibility, etc. in convergence with other Central and State government schemes.