Types of PMAY Schemes

Learn about PMAY Types - PMAY Gramin and PMAY Urban

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The Pradhan Mantri Awas Yojana (PMAY) is a flagship government program with an objective to provide affordable housing to the economically weaker section of the society. Launched in the year 2015, the scheme offers a subsidy of over 6.5% on the Home Loan Interest Rate. 

 

This move is taken to encourage a large number of poor families in rural and urban areas to avail a home loan facility for owning a ‘pucca’ home of their own. The interest rate subsidies and the tax benefits offered under the PMAY scheme are also aimed at encouraging a large number of first-time homebuyers to apply for a home loan

Types of PMAY Schemes

To ensure that eligible applicants in cities, as well as rural areas, can equally avail the facility, the PMAY is bifurcated into two primary schemes-

PMAY Gramin

PMAY-G exists to provide affordable housing to Indian citizens living in the rural areas of the country. The Union and the State governments share the cost of the homes constructed in such areas in a 60:40 ratio. But, in the case of homes in the North Eastern region of the country, the costs are shared in a 90:10 ratio.

PMAY-G Benefits:

The scheme aims at integrated development of Scheduled Caste (SCs) majority villages:

  • Assist upto ₹ 12,000 for construction of toilets by Central and State/UT Government Schemes such as Swachh Bharat Mission Gramin (SBMG) in collaboration with Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) or other schemes.

  • Providing funds of up to ₹20 lakh per village by engaging in activities that the existing Central and State Government Schemes does not cover.

  • The central government will bear 90% of the cost in rural areas located in the Himalayan states, northeastern states, and the Union Territory (UT) of Jammu & Kashmir. 

  • The state government will finance an amount of up to ₹1.30 lakh of assistance for each unit.

  • The Central government will offer 100% financing for the construction of houses in Union Territories, including the union territory of Ladakh.

PMAY Urban:

PMAY-U was set up in place to provide cost-effective housing to Indian citizens living in the urban areas of the country. More than 4300 towns are covered under this initiative. The PMAY-U scheme has been implemented in three stages, or phases.

PMAYU Benefits:

The PMAY-Urban scheme has many features, namely: 

  • Upto 6.5% on housing loan, Beneficiaries can avail a subsidy

  • Beneficiaries can use the loan to service the expenditure of building or purchasing a home

  • 20 years is the range for loan repayment period

  • Senior citizens, women, and differently-abled people are given priority

  • The housing units are built using sustainable, eco-friendly technology ensured by Authorities

  • Houses built under the scheme include utilities such as water, gas, and electricity

Know how to apply for PMAY scheme

Difference between PMAY-G and PMAY-U

Although they are divisions of the same government housing scheme, the PMAY-U and the PMAY-G differ on various parameters. Here we compare the differences between the urban and rural arms of the Pradhan Mantri Awas Yojana along with the following criteria:

Criteria

PMAY-U

PMAY-G

Beneficiaries

Beneficiaries include economically weak sections, middle income groups and low income groups.

Gram sabhas in villages choose the beneficiaries based on the Socio-Economic and Caste Census.

Area restrictions

EWS applicants are eligible for houses with a carpet area of 322 square feet. For lower income groups, the designated carpet area is 645 square feet.

Houses in rural areas will be spread across a carpet area of at least 269 square feet.

No. of planned houses

2 crore

4 crore

Selection

Applicants must meet income eligibility criteria

Applicants are selected by the gram sabha as per the Socio-Economic and Caste Census

Fund allocation

  • Slum rehabilitation grant: Rs. 1 Lakh per house

  • EWS: Rs. 6 Lakhs

  • LIG: Rs. 6 Lakhs

  • MIG-I: Rs. 9 Lakhs

  • MIG-II: Rs. 12 Lakhs

  • Plains: Rs. 1.2 Lakhs

  • Remote areas: Rs. 1.3 Lakhs

Home sizes

  • EWS: 322 sq ft

  • LIG: 645 sq ft

  • MIG-I: 1722 sq ft

  • MIG -II: 2152 sq ft

  • Minimum size 269 sq ft

Components of PMAY 

The Pradhan Mantri Awas Yojana is primarily divided into 4 components:

  • In-Situ Redevelopment: Under the PMAY-U, the government aims to leverage the land in urban areas that are encroached by slum developments and utilize it to construct formal urban residential establishments for the slum dwellers. The scheme aims to uplift the standard of living of people in such areas. Under the in-situ redevelopment program, the eligible tenants are identified under the Housing for All Plan of Action (HFAPoA) city report. Respective authorities can involve the slum dwellers through their association for consultations about the planning and implementation of the redevelopment.

  • Affordable Housing in Partnership: Under this initiative, the government plans to provide affordable housing to the beneficiaries by partnering with the public and private sector. This includes involving different industries from different States and Union territories in India to work together and plan affordable housing projects for the beneficiaries. To check whether you fall into the beneficiary category or not, you can check your Pradhan Mantri Awas Yojana eligibility at the official website, online.

  • Credit Linked Subsidy Scheme: The PMAY’s Credit Linked Subsidy Scheme (CLSS) offers an interest subsidy of 6.5% on home loans. Applicants can also enjoy an extended home loan tenure of 20 years under the PMAY CLSS. Moreover, the net present value (NPV) on the interest subsidy is calculated at a discount rate of 9%. The PMAY lists a maximum limit of INR.6 lakhs to avail the benefits of the home loan subsidy.

  • Enhancement and construction of beneficiary-led house: The beneficiaries who are not eligible for the above-mentioned PMAY schemes can get financial aid from the ‘enhanced and construction of beneficiary-led’. Under this PMAY scheme, beneficiaries belonging to the EWS (Economically Weaker Section) can avail financial assistance up to INR. 1.5 Lakhs from the Central government. These funds can then be used to construct new houses or upgrade the existing one with basic amenities.

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Conclusion

The PMAY scheme is an amazing platform for low-to-mid income families that cannot afford to pay the high home loan EMIs. Moreover, the bifurcation of the scheme into PMAY urban and PMAY Gramin makes it easier to ensure that the funds are allocated according to the respective requirement across states. To avail a PMAY subsidy on your home loan, apply now for the Bajaj Markets Home Loan offered at Bajaj Markets. What’s more? The process is online and requires minimal paperwork. So why wait? Get your home loan with Bajaj Markets today and make your dream of owning a home a reality!

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PMAY Types FAQs

  • ✔️How many categories are there in PMAY?

    PMAY has two categories, Pradhan Mantri Awas Yojana-Gramin and Pradhan Mantri Awas Yojana-Urban.

  • ✔️What is MIG1 and MIG2?

    The Medium Income Group (MIG1) Scheme qualifies the beneficiaries whose annual household income between Rs. 6 lakh to 12 Lakh and Medium Income Group (MIG2) Scheme qualifies the beneficiaries whose annual household income between Rs. 12 lakh to 18 Lakh

  • ✔️What is the full form of PMAY-G?

    The full form of PMAY-G is Pradhan Mantri Awas Yojana-Gramin.

  • ✔️What is the full form of PMAY-U?

    The full form of PMAY-U is Pradhan Mantri Awas Yojana-Urban.