The Prime Minister of India, Narendra Modi, made a promise to provide “Housing for all by the year 2022”. This was done so under his housing scheme wherein houses would be constructed in rural areas under the plan known as the Pradhan Mantri Awas Yojana- Gramin or PMAY-G. The scheme was launched into action in November of 2016 and aimed to create close to three crore houses that came with basic amenities such as a hygienic sewage system by the year 2022. The aim of the project is to provide affordable housing to those who are homeless or come from rural parts of India, excepting Chandigarh and Delhi.
The Ministry of Rural Development released a statement that said that the beneficiaries would be selected through a thorough three-stage selection process to ensure that only those that fell under the lower-income bracket or economically weaker sections of society would be considered for the housing scheme. The ministry even stated that the PMAY-G scheme has ensured that a gateway includes Direct Bank Transfers so that there are no restrictions with regards to the flow of funds to those that are eligible under the criteria. Several factors have been taken into account while building the houses such as designs based on the locale through studies of the region through geotagged images. Furthermore, the plan has been organised into stages of construction, backed by adequate funding and has even trained the rural construction workers prior to starting work. These factors are important while considering the deadline for the completion of the houses by 2022.
These new factors were taken into account in order to maintain a steady pace during the construction of the houses which will ultimately result in the complete set of over one crore houses as was stated by the Ministry of Rural Development. This total number of houses is inclusive of houses to be constructed for close to one and a half lakh individuals that would be eligible under the criteria as ‘landless beneficiaries’ mentioned under the Pradhan Mantri Awas Yojana Gramin.
The National Institute of Public Finance and Policy (NIPFP) has released a study on the PMAY-G programme that was referred to in the statement made by the Ministry. This stated that the average number of days that it would take to complete the PMAY-G scheme has reduced from an estimated 314 days to now 114 days. The Ministry of Rural Development has also managed to complete construction on a total of seventy-two lakh houses as part of the Indira Awas Yojana, which is what the Pradhan Mantri Awas Yojana was named before March 2016. Therefore the total number of houses that have been constructed since 2014 has reached 182 lakhs.
The Ministry of Rural Development in tandem with the study by the NIPFP is assured that a due to a majority of the houses being close to stages of completion along with the decreased duration required to complete the construction of the houses, it is possible the end goal of close to three crore houses can be achieved by 2022 under the Pradhan Mantri Awas Yojana Gramin.
Those who would be considered beneficiaries or eligible under the PMAY scheme are determined through six points. They can be families with an annual income of not more than three lakh rupees, which would classify them as part of the economically weaker section of society. Families with the annual income between three and six lakhs can apply under the lower income group category.
Additionally, the PMAY housing scheme required that one must not already own a house and must not be registered under another housing scheme under the State or Central Governments of India and have a valid Aadhaar card.
A critical way in which the PMAY-G has reached out to so many beneficiaries that are in lower-income groups or economically weaker sections of society is through a credit-linked subsidy scheme. This allows for interest subsidies to be made on a home loan that beneficiaries may opt for if they are eligible under the PMAY housing scheme. The scheme allows for home loan interest subsidies to be availed for either the purchase or construction of a house and is based on the final outstanding principal amount.
Once the eligibility criteria offered by the PMAY-G housing scheme are fulfilled, one can opt for home loans like the Bajaj Finserv Home Loans available on the Finserv MARKETS portal. These allow one to avail a maximum subsidy of Rs. 2.67 Lakhs at an interest subsidy rate of 6.5%, that is, if the loan amount is up to Rs. 6 Lakhs.
Applying for the same through the Finserv MARKETS portal makes the application process frictionless. The documentation required is minimal, making loan approval as fast as possible. By providing one’s Aadhaar information, a link can be created to one’s bank account which would allow for fast and direct transfer of funds.
If confused about eligibility, you can make use of the PMAY Subsidy calculator on the Finserv MARKETS portal It takes into account factors such as the annual income of a household, the loan amount, and the tenure among other factors to determine if one is eligible or not for the PMAY-G housing scheme.
You can also check your name in PMAY List 2019-20 only at Finserv MARKETS.
The Pradhan Mantri Awas Yojana Gramin has addressed a nationwide problem by creating homes for LIG and EWS within other Government-led programmes; such as through Deendayal Antyodaya Yojana-National Rural Livelihood Mission. Paired with schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme, not only are houses being constructed but employment is also provided to the poor. The houses are backed with electricity under yet another scheme, a Ministry of Power scheme, and an LPG connection is offered through the Pradhan Mantri Ujjwala Scheme. Finally, the Jal Jeevan Mission ensures hygienic toilets in all households. These houses under the PMAY-G scheme will not only provide a living space but also enable a significantly better standard of living for the poor in India.
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