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PMAY - PMAY Urban & PMAY Rural in details

By Finserv MARKETS - Aug 23,2019
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PMAY - PMAY Urban & PMAY Rural in details

Introduction

The necessities to lead a healthy life are food, clothing, and shelter. However, it’s an unfortunate fact that the vast majority of India’s population are still striving to meet their basic requirements. According to a study conducted by the United Nation’s Millennium Development Goals (MDG) program, an estimate of 21.9% of India’s population lived below the poverty line in 2011-2012. The Government of India has launched several schemes to address the issues faced by marginalized families across the country. One such scheme is the Pradhan Mantri Awas Yojana (PMAY). It is a centrally established, and an effective scheme that aims at providing 20 million affordable houses to people belonging to the financially deprived sections. With a mission to provide housing for all by 2022, the scheme is entitled to certain sections of the society like Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG).

The Pradhan Mantri Awas Yojana is further divided into two components – PMAY Urban and PMAY Rural. Let’s have a detailed look at the eligibility criteria of PMAY, features of PMAY, and subsidies related to the PMAY-Urban and PMAY- Rural schemes.

Eligibility criteria for Pradhan Mantri Awas Yojana –Urban (PMAY-U)

  • Economically Weaker Section (EWS): Families having an annual household income up to Rs. 3 lakhs are eligible under EWS.
  • Low Income Group(LWS): Families with an annual household income between Rs. 3 lakh and Rs. 6 lakh are covered under LWS
  • Middle Income Group 1(MIG-1): Families with an annual household income between Rs. 6 lakh and Rs. 12 lakh are covered under MIG-1
  • Middle Income Group 2(MIG-2): Families with an annual household income between Rs. 12 lakh and Rs. 18 lakh are covered under MIG-2
  • Minority Groups: People belonging to minority groups like SC/ST/OBC will fall under minorities. However, to avail the benefits under the PMAY Urban scheme, these people are required to provide relevant caste and income certificates.

Features of PMAY Urban

  • The cost of real estate has increased substantially in recent years, especially in urban areas. The PMAY urban aims to address the housing requirements of the slum dwellers and people living in rented apartments in the urban areas.
  • The carpet area of houses allotted to the EWS category will be 30 sq-m, whereas for the LIG category the carpet area will be up to 60 sq-m.
  • To facilitate the application process, PMAY online apply is also possible for the eligible beneficiaries of PMAY urban.

Subsidy for PMAY Urban

  • To encourage more individuals to avail the benefits of PMAY, the government has announced various subsidies on the interest rate on housing loan.
  • Under the credit-linked subsidy scheme, EWS and LIG are eligible to avail an interest rate subsidy of 6.5% on a home loan of INR 6 lakh.
  • MIG-1 category is allowed an interest rate subsidy of 4% on a home loan of INR 9 lakh
  • MIG-2 category is allowed an interest rate subsidy of 3% on a home loan of INR 12 lakh.

Eligibility for Pradhan Mantri Awas Yojana- Rural (PMAY-R)

  • Economically Weaker Section (EWS): Families having an annual household income up to Rs. 3 lakhs are eligible under EWS.
  • Low Income Group(LWS): Families with an annual household income between Rs. 3 lakh and Rs. 6 lakh are covered under LWS
  • Middle Income Group 1(MIG-1): Families with an annual household income between Rs. 6 lakh and Rs. 12 lakh are covered under MIG-1
  • Middle Income Group 2(MIG-2): Families with an annual household income between Rs. 12 lakh and Rs. 18 lakh are covered under MIG-2
  • Minority Groups: People belonging to minority groups like SC/ST/OBC will fall under minorities. However, to avail the benefits under the PMAY Urban scheme, these people are required to provide relevant caste and income certificates.

Features of the PMAY rural scheme

  • The houses provided will have all the facilities such as electricity, water supply, proper sewage system, sanitation facility, etc.
  • Moreover, the beneficiaries of PMAY rural scheme will be provided with good quality cooking fuel.
  • The government has also proposed to make use of advanced technologies like information communication and space technology to ensure correct selection of beneficiaries under this scheme.

Subsidy for PMAY Rural

The beneficiaries of PMAY Rural can avail an interest rate subsidy of 3% on a home loan of up to Rs. 2 lakhs.

The PMAY subsidy will certainly play a crucial role in bringing down the home loan rate levied on the home loan. This will not only reduce the home loan EMI but also reduce the repayment burden of the home loan in the long run.

Though the PMAY rural and PMAY urban are two separate wings, they have a common agenda i.e. to help the financially weaker citizens of the country realize their dream of owning a property.

While availing a housing loan under the PMAY scheme, it is advisable to compare various loan offers provided by different financial institutions. This will help the beneficiaries avail a home loan that best suits their needs.

You can apply for a Bajaj Finserv Home Loan as it comes with various attractive features such as flexible repayment options, no hidden charges, etc. You can also claim Pradhan Mantri Awas Yojana (PMAY) subsidy with home loan on Finserv MARKETS. It requires minimal documentation and comes at a very competitive home loan interest rates. Lastly, it is advisable to read the terms and conditions of the loan agreement carefully before signing it. This will help the beneficiaries avoid any inconvenience in the later stage.

Also, get to know about the perfect CIBIL score for home loans. You can also check your eligibility for home loan with the help of home loan eligibility calculator and home loan emi with the help of home loan EMI calculator.

Read more about Government Housing Schemes

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!

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