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Pradhan Mantri Awas Yojana, or PMAY, is a housing scheme launched by the Central Government in 2015. This PMAY scheme aims at extending affordable housing facilities to eligible individuals belonging to the lower and middle-income groups. This initiative covers both India’s urban and rural population and is categorised as PMAY-U and PMAY-G, respectively. As per the official websites of PMAY, 

  • Almost 48.02 lakh houses were completed through PMAY-U since its inception. 
  • Under PMAY-G, approximately 1.3 crore houses were built till May 2021. 

Intending homebuyers can also avail the benefits of this scheme by meeting the set eligibility requirements. However, before that, they need to know the features and benefits of the PMAY in detail to leverage its offerings. 

Features of PMAY scheme 

Following are a few highlights of the PMAY scheme –  

  • Individuals belonging to the lower, middle-income groups (LIG, MIG 1 and 2) and economically weaker section (EWS) are eligible for this fund. 
  • PMAY subsidy is available on interest rates at 6.50% per annum if the borrowers opt for a home loan under this scheme with a tenor up to 20 years. 
  • All statutory towns are covered under this scheme. 
  • It is a credit-linked subsidy scheme (CLSS).  
  • The fund can be used for the acquisition, construction of houses. 
  • Stress is put on using sustainable, eco-friendly material to build houses. 
  • The ground floors are allotted to senior citizens and differently-abled individuals. 

Major financial institutions, including NBFCs, extend a home loan under this scheme. The beneficiaries of the PMAY scheme also enjoy some exclusive benefits apart from the ones mentioned below. 

Benefits of PMAY scheme 

As mentioned earlier, the motto of this scheme is to provide pucca housing to all by 2022. Besides, following are some of the key benefits of Pradhan Mantri Awas Yojana. 

  • Aims at slum rehabilitation

One of the primary agenda of this scheme was In-Situ Slum Redevelopment (ISSR). It targets to provide affordable, concrete houses to eligible slum dwellers through private participation. The initiative has already started in Mumbai and a few other cities. 

  • Empowers women  

The latest PMAY-U guidelines released in January 2021 emphasises women house ownership. It also mandates the female head of the household in the title deed to ensure loan application approval. It is mandatory for LIG and EWS individuals to have woman ownership individually or jointly in the home registration under this scheme. 

PMAY scheme essentially paves the way to empower women with the right to own property. 

  • Funds for essential amenities 

Under Beneficiary-led Construction (BLC) guidelines, the EWS will also be eligible to get Central assistance of up to Rs.1.5 lakh to build a new home or renovate the existing one. The fund can also be used to build a toilet and kitchen complying with NBC norms. 

However, to avail of financial assistance to build a house or avail subsided interest rates, individuals need to know the PMAY eligibility to ensure a faster loan approval. 

PMAY eligibility criteria 

Following are the eligibility parameters for the PMAY scheme. 

  • The beneficiaries must belong to EWS, LIG or MIG, decided as per annual household income. The maximum annual income cap for MIG is Rs.18 lakh. 
  • Applicants or the family must not own a pucca house anywhere in the country. 
  • Beneficiaries must not have availed any central or state assistance for housing before.
  • The location of the house must come under the areas, towns, villages, cities mentioned in Census 2011. 
  • Borrowers must not avail of other CLSS linked home loans from any financial institution. 
  • Beneficiaries must possess an Aadhaar card and other necessary documents. 
  • For LIG and EWS, the female head of the household must own or co-own the property. 

Only after meeting the eligibility and completing the documentation beneficiaries can expect their names on the PMAY list. Individuals failing to fulfil the eligibility can also opt for a traditional home loan from reputed Housing Finance Companies to finance the purchase of their houses. 

Features and benefits of home loan 

Following are some of the offerings that top financiers provide – 

  • Lenders can offer a home loan of up to Rs.3.5 crore with competitive interest rates. 
  • Individuals can choose a tenor of up to 20 years for easy repayment. They can also use a home loan EMI calculator for better estimation of the most convenient tenor. 
  • Transfer an existing loan to a new lender and avail lower interest rates and favourable services. 
  • Borrowers can avail of a top-up loan of up to Rs.50 lakh on home loan refinancing. They can utilise the funds for any purpose without any restrictions. 
  • Prepay the loan before the tenor ends and foreclose the account with nominal charges. 
  • Reduce the interest outgo and lower EMI payable through the Flexi loan facility, wherein the interest is charged only on the fund withdrawn. 

Select lenders also extend pre-approved offers that expedite the loan processing and simplify it. Such offers apply to various credit products like home loans, LAP loans, etc. All you have to do is enter your name and contact number to check your pre-approved offer online. 

Consider these above-mentioned features and benefits of the PMAY scheme to qualify for an affordable house within your budget. To maximise benefits, check eligibility criteria and documents required before applying.

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