Understanding the Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana is the social security scheme which aims to provide affordable housing to the economically deprived sections and middle class income groups of Rural and Urban India. The government offers the credit-linked subsidy to these eligible households who have applied under the PMAY scheme.

Overview of PMAY scheme

The Narendra Modi government introduced Pradhan Mantri Awas Yojana or PMAY scheme on June 25, 2015.
Pradhan Mantri Awas Yojana aims to provide affordable housing to 20 million households by the year 2020.
PMAY scheme provides the loan for the construction of houses for a maximum tenure of 20 years.
There are three phases of PMAY scheme:

Phase 1 – From April 2015 to March 2017. In this phase, 100 cities will be covered.
Phase 2 – From April 2017 to March 2019. More than 200 cities will be covered.
Phase 3 – From April 2019 to March 2022.

Major components of PMAY scheme: There are four significant components of Pradhan Mantri Awas Yojana.

The government aims to provide the urban spaces to slum dwellers by utilising the slum land under the In-situ redevelopment of slum spaces.
Under this component, the government offers the central assistance of Rs 1.50 lakh. The financial cover aims to support the family of economically weaker sections to construct a new house or enhance the existing home.
With the affordable-in house partnership of the public and private sector, the government assists with the affordable housing projects.
Under the PMAY scheme, the government provides a credit-linked subsidy scheme for the construction of houses at a lower rate of interest depending on the income level.

Eligibility Criteria for getting CLSS subsidy under PMAY scheme: To avail the benefits of PMAY scheme, you must fulfil the following Pradhan Mantri Awas Yojana eligibility criteria.

The economically weaker sections of society whose income level do not exceed Rs. 3 Lakhs.
The income bracket for the lower Income group should be between the range of Rs. 3 Lakh and Rs. 6 Lakh.
MIG-1 should have income between Rs. 6 Lakh to Rs. 12 Lakh
MAIG-2 should have income between Rs. 12 Lakh to Rs. 18 Lakh

Interest Rate and net usable carpet area for getting a Credit linked subsidy scheme are as follows:

Groups	Interest Subsidy	Loan Amount	Net usable carpet area
EWS	6.50%	Upto 3 lakhs	30 square meters
LIG	6.50%	Up to 6 Lakhs	60 square meters
MIG 1	4.00%	Up to 9 Lakhs	160 square meters
MIG 2	3.00%	Up to 12 Lakhs	200 square meters

Process of applying for PMAY scheme: You can register for the Pradhan Mantri Awas Yojana through online and offline modes. To register for the PMAY scheme online, you need to register yourself on the official website of Pradhan Mantri Awas Yojana under the category; slum dweller and other three components and fill the necessary form for PMAY scheme along with the following documents:

Aadhar Card
PAN card, Voter ID, Driving License
Proof for minority
Passport
Economically Weaker Section certificate or Low Income Group certificate
Salary slips
IT return statements
Property valuation certificate
Bank details and account statements
Address proof
Details of the property

You can also register for the PM awas yojana scheme by visiting the nearest common service centre. The authorities will provide you with the application form for PMAY, which you need to submit along with a fee of Rs. 25 plus GST for registration of credit linked subsidy.

Pradhan Mantri Awas Yojana is a social welfare scheme which assists with affordable housing with the additional concessional rates to women borrowers and minorities to construct the new houses at a subsidized rate of interest.

Summary : Understanding the Pradhan Mantri Awas Yojana

Major components of PMAY scheme: There are four significant components of Pradhan Mantri Awas Yojana.

The government aims to provide the urban spaces to slum dwellers by utilising the slum land under the In-situ redevelopment of slum spaces.
Under this component, the government offers the central assistance of Rs 1.50 lakh. The financial cover aims to support the family of economically weaker sections to construct a new house or enhance the existing home.
With the affordable-in house partnership of the public and private sector, the government assists with the affordable housing projects.
Under the PMAY scheme, the government provides a credit-linked subsidy scheme for the construction of houses at a lower rate of interest depending on the income level.

The table briefly summarize about the Pradhan mantri awas yojana eligibility