With an objective to provide affordable houses to marginalized families across the country, the Indian Government launched the Pradhan Mantri Awas Yojana (PMAY) in the year 2015. Under the PMAY scheme, the government has proposed to construct 2 crore houses in different parts of the country. Moreover, in order to have the pollution under control, the houses under the PMAY scheme will be constructed by using eco-friendly construction method. The PMAY scheme will certainly help in decreasing the issue of homelessness faced by millions of citizens across the country.
Components of PMAY
The PMAY is further divided into two major components:
- Pradhan Mantri Awas Yojana- Urban (PMAY-U) – To cater to the housing needs of the poor urban residents.
Depending upon the annual household income, the urban beneficiaries are classified into three components, namely, Economically Weaker Section (EWS), Low-income Group (LIG) and Middle Income Group (MIG). In addition, slum dwellers in the urban areas can also apply for the Pradhan Mantri Awas Yojana.
- Pradhan Mantri Awas Yojana- Rural (PMAY-R) – To help the financially deprived families residing in rural India own a property.
The houses in the rural areas will have all the necessary basic facilities such as electricity, water supply, proper sewage system, sanitation facility, etc.
How to apply for PMAY?
- The eligible Urban beneficiaries can opt for PMAY online apply to register themselves under the PMAY scheme.
- On the other hand, the beneficiaries of the rural areas are selected by the data collected through the Socio-Economic and Caste Census of 2011. The eligible rural beneficiaries do not have to go through a registration process to avail the benefit of this scheme.
Steps to apply for PMAY-(U) depending upon the income category
- Log on to the official Pradhan Mantri Awas Yojana at pmaymis.gov.in
- Choose the ‘Benefits under other 3 components’ or ‘slum dweller’ option by clicking the ‘Citizen Assessment’ dropdown.
- Enter the Aadhaar number and click submit.
- If the information provided is correct, you will be directed to the next page where you will have to provide all the pertinent information mentioned in the form.
- Once all the information is provided, you have to type the captcha code in the box and click submit.
- If you happen to make a mistake which typing out the information, you can edit the form with the help of your Application and Aadhaar number.
To further enhance the popularity of the PMAY scheme in the urban areas, the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) introduced the Credit Linked Subsidy Scheme (CLSS). Under the CLSS scheme, beneficiaries can avail an interest rate subsidy on their home loan. This home loan subsidy can help in bringing down the overall cost of borrowing in the long run. It can also help in decreasing the home loan EMI, thereby reducing the repayment burden significantly.
Are there any application charges involved?
If you opt to apply online, you can complete the process for free. Whereas, if you apply through a CSC, you will have a pay a fee of Rs.25.
Can a person apply for PMAY twice?
No. PMAY doesn’t allow a beneficiary to apply for housing subsidy twice.
Apart from understanding the PMAY subsidy, it is also essential to compare various loan offers provided by different financial institutions while availing a housing loan under PMAY scheme. Borrowers can avail a Bajaj Finserv Home Loan as it comes with competitive home loan interest rate and various other features such as flexible repayment option, no hidden charges, etc. Home loan on Finserv MARKETS also comes with no foreclosure charges and minimal documentation.
You can also get more information on eligibility for PMAY. Also, read about how carpet area gets affected because of PMAY subsidy.
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