1. Home
2. Blogs

Pradhan Mantri Awas Yojana 2024: A Detailed Guide

• 
• 
• 
• 0
• 0

The Government of India has introduced Pradhan Mantri Awas Yojana to ensure affordable housing scheme facilities for the countrymen, especially those belonging to the economically weaker section of the society.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana is a government-sponsored special credit-linked exclusive subsidy scheme that facilitates easy access to cost-effective housing, especially for the country's low and middle-income groups, including urban migrants, people belonging to the group of non-formal urban economy as well as those belonging to the industrial sector. This is the flagship scheme the Government of India introduced in 2015 to ensure affordable housing facilities for all, especially the poorer sections.

Key features of Pradhan Mantri Awas Yojana

Some of the significant features of the esteemed PMAY scheme include:

1. Providing cost-effective houses to the slum residents in collaboration with certain specific private developers, provided they are engaged in the PPP module

2. Offering budget-friendly housing solutions to the economically weak section of society using the exclusive Credit Linked Subsidy Scheme under PMAY

3. Building cost-effective housing through effective collaboration with the private sector

4. Offer subsidies for all the qualifying beneficiaries for house building and construction.

Eligibility criteria for Pradhan Mantri Awas Yojana

As per the current norms of the Ministry of Housing and Urban Property Alleviation (MHUPA), the qualifying beneficiaries of the PMAY scheme must fulfil these specific criteria:

1. The concerned beneficiary can be the spouse (husband or wife) and their unmarried offspring (son or daughter).

2. The concerned beneficiary cannot own any “pukka” house, and the house in which he/she resides cannot be in his/her name or the name of any other member of that family throughout the country.

3. Any specific adult, unmarried or married, can be considered to be a separate household, depending on the circumstances.

4. The beneficiary can belong to MIG I, with a total annual income between INR 12 lakhs and INR 18 lakhs; the MIG II category, with an annual income between INR 3 lakhs and INR 6 lakhs; LIG, with an annual income ranging between INR 3 lakhs and INR 6 lakhs; or the EWS or the Economically Weaker Section, with a total annual income of up to INR 3 lakhs.

Pradhan Mantri Awas Yojana scheme components

There are 4 specific components in the PMAY scheme:

1. Credit Linked Subsidy Scheme

2. In-situ Slum Redevelopment

This has been introduced to effectively redevelop slums in collaboration with private organisations and developers. Under this particular scheme, qualifying slum residents receive special financial assistance of INR 1 lakh for house construction.

The private investors are selected through fair bidding. The residents will have a temporary accommodation facility during the construction and building procedures.

3. Affordable Housing Partnership

This scheme allows the Union Government to provide financial assistance of up to INR 1.5 lakhs to the EWS for buying and constructing houses. The respective states and UTs can develop these projects in association with private organisations.

Here, the respective state or UT should set the optimum limit of the unit price for the buyers under EWS. The carpet area is considered for determining the value of the constructed houses to keep them affordable. Without any private party involvement, these houses will have no profit margin. The respective state or UTs will decide the final sale price using complete transparency as per the State/Centre/ULB incentives. The Central grant exclusively applies to housing projects bearing 35% of the entire number of units constructed for EWS.

4. Beneficiary-led individual house construction/enhancements

Here, the Centre will offer unit support in plain lands ranging between INR 70000 and INR

1.20 lakhs, while for hilly and rugged terrains, it is INR 75000 and INR 1.30 lakhs. The beneficiary must compulsorily provide all the relevant personal identity documents and proofs as required to the specific ULBs. The State will monitor the program utilising special geo-tagged photos.

The application process for Pradhan Mantri Awas Yojana

PMAY allows for both online and offline applications.

Online

1. First, visit the official PMAY website.

2. Click the “Citizen Assessment” option that appears under the Menu.

3. Then, the applicant needs to enter the Aadhaar number.

4. Then, it will be automatically redirected, and the application page will open.

5. Enter all the necessary details as required, including income details, bank details, personal details, etc.

6. Click “save” after cross-checking to receive the unique application number.

7. Download the application form that you have filled out for future reference.

8. Then, you can submit this form along with all the relevant documents at your nearest bank branch with a home loan facility, CSC office, or other financial institution.

Offline

For offline application, visit the nearest financial organisation, CSC office, or any bank branch with a housing loan facility to acquire the form.

Duly fill out and sign the form, entering all the relevant details.

Submit the form along with other necessary documents, such as your consent for using Aadhaar information, an affidavit that neither you nor any of your family members own any “pukka” house anywhere in the country, government photo identity proof, bank account details, Swachh Bharat Mission registration details, and job card details as per registration under MGNREGA (as per applicability).

How does PMAY work?

The aspirant and the beneficiary can avail of a home loan facility and a PMAY subsidy. You can even invest in an insurance policy for home to ensure the safety net of your precious real asset. Property insurance can protect your home from unexpected damages by acting as a protective shield.

The PMAY subsidy has been classified according to the beneficiary's economic standard: EWS, LIG, MIG I, and MIG II.

The government disburses the approved subsidy amount in phases. NHB and HUDCO pay the subsidy interest rate for these loans.

You need to pay 20% of the total property value as a down payment, and the remaining amount will be arranged through loans. The MIG II category beneficiaries qualify for a 3% subsidy on loans up to INR 12 lakhs.

PMAY subsidy and benefits

If you take a loan of INR 6 lakhs @ 9% for 20 years, your EMI will be INR 5398, and the total interest for 20 years will be INR 695000. The NPV after subsidy of 6.5% will amount to INR 267000, while the reduced loan will be INR 333000. So, after 20 years, your EMI will amount to INR 2996 @ 9%, and the total interest will be INR 386061.

Some of the highlighting benefits of the PMAY subsidy scheme include:

1. As an eligible beneficiary, you are allowed to avail of PMAY subsidy benefits @ a 6.5% rate of interest on the home loan, with a tenure of 20 years

2. If the applicant is disabled or a senior citizen, they will be offered a special preference for the ground floor.

3. The PMAY subsidy applies to each aspect of the PMAY scheme.

4. Here, the primary preference is given to Tier I cities.

FAQs

1. How can I check the PMAY subsidy status using the PMAY mobile app?

First, download the PMAY mobile application on your smartphone. Select the beneficiary log-in tab. Log in using the PMAY portal credentials. Enter the application ID in the designated space. Click the “get status” tab to check the subsidy status.

2. How long does it take to receive a PMAY subsidy?

Once you have applied, all the details will be verified. The disbursement process will begin only after the verification is complete. This usually takes nearly 3-4 months to complete.

Conclusion

We have highlighted all the significant aspects of the PMAY scheme of 2024. If you remember these details, you can easily apply for it and receive all the associated benefits.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

RELATED ARTICLES

Home Insurance vs Home Loan Insurance: What You Need to Know

Understanding Property Insurance Eligibility Criteria

Key Factors Influencing Home Insurance Premiums

Loss of Rent Coverage or Rent for Alternative Accommodation: Which Is Better?

How is Property Insurance Calculated?

---

• 
• 
• 
•