PMAY Home Loan-Pradhan Mantri Awas Yojna

What do you know about PMAY?

PMAY or Pradhan Mantri Awas Yojna is mission of Housing for all by 2022. It is a public housing scheme. Erstwhile You must have heard of IAY (Indira Awas Yojna) which was started in Jan 1996. This scheme was launched to address the demand of rural housing. During the implementation, several gaps were identified. Like, lack of transparency, selection of beneficiary, Lower quality of house, lack of convergence and technical support etc. So, government restructured the IAY and initiated a new scheme named PMAY. This new scheme was launched on 1st April 2016. The main objective is to provide a pucca house to each and every family of India.

Key Features of PMAY

  1. Government will provide interest subsidy of 6.5% of the housing loan availed by benificary
  2. Loan repayment period is maximum of 15 years making EMIs lower
  3. Preference is given to women applicant or beneficiary
  4. Affordable housing making pucca house in the reach of all
  5. Eco Friendly and technically sound house for the families

PMAY Urban Vs Grameen

Its aim to provide a pucca house with basic amenities to all households. There are two separate stream under PMAY for grameen and urban households.

PMAY Urban PMAY Grameen
PMAY urban is categorized as EWS, LIG and MIG. The unit size varies as per category. PMAY Grameen is for all household with kuccha house or dilapidated house.
Subsidy of maximum 2.30 Lakh is provided to the beneficiary (6.5% of the housing loan availed by the beneficiary Per unit house assistance is Rs. 1.20 lakh. Toilet making assistance is given under Swachh Bharat Mission and MGNREGS
In urben housing ground floor preference is given to senior citizen. Eco friendly and hygenic houses are built in PPP mode The house constructed must have a hygienic cooking space, all basic amenities like toilet, drinking water, electricity etc.
Carpet area of an EWS flat is up to 30 Sq mt, LIG is up to 60 Sq Mt and MIG is 90 Sq Mt-120 Sq Mt Minimum unit house size is 25 Sq. Mt.
Selection of beneficiary is done through public authorities by lucky draw or lottery or NGO. Selection of beneficiary is done through Gram Sabha
The beneficiary should not own any house in his or her name, even on his family members The beneficiary may own a kuchha house or dilapidated house

How it is a Credit Linked Subsidy scheme

There is fashion to provide assistance as subsidy on interest charged by the housing loan agency. Government will provide the 6.5% of loan subsidy amount. This may be maximum of 2.35 lakh. Your subsidy is directly credited to the lender. This is how it becomes a credit linked subsidy scheme.

Eligibility to get PMAY Loan

Now you may be curious to know that whether you are eligible for this government subsidy scheme. So, Let’s check it what is criteria of eligibility.

  1. Applicant and his/her family member should not own a pucca house in any part of India
  2. Income Criteria-
    • EWS category having annual income up to 3 Lakhs
    • LIG category having annual income of 3 Lakhs to 6 Lakhs
    • MIG category having annual income above 6 Lakhs to 18 Lakhs
  3. Recommendation of Gram Sabha is required in Grameen PMAY. The beneficiary must be covered in Socio Economic Cast Census SECC) 2011.
  4. In case or Urban PMAY beneficiary, property/house/flat should be as per the income category and housing project shall be in PPP mode. Independent house/flat may also be considered

As government wants to provide housing for all, hence no complicated eligibility criteria is deployed. You have to simply  identify the opportunity and get your dream home. For more details you may refer to PMAY Urban and PMAY Grameen . Depending upon your location and choice or home, income category, you may contact the bank for PMAY housing loan. For more about home loans please Click Here .

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