Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana was launched in the year 2015 by the Prime Minister of India, Narendra Modi to ensure that by 2022 (the 75th year of Indian Independence) all Indians have a home to live in. This mission is guided by the principle of Housing for all.

There are four verticals that are made available by the Government under this scheme so that it suits the needs of all those looking to have a dwelling unit of their own.

Pradhan Mantri Awas Yojana Details - Everything you need to know 

Housing, food, and clothing are some of the basic requirements of a human being. In a developing country like India, most of the population is deprived of these three needs, especially that of basic housing. Thus, to counter this problem, the Pradhan Mantri Awas Yojana was launched on 1st June 2015 as a flagship program by the Indian Government. 

It aims at providing housing facilities that are affordable to the Indian population by 2022. It is based on a Credit linked subsidy scheme. Under this scheme, there is a subsidy on the interest on the loan for constructing or buying a house. 

There are specific categories to whom these schemes are applicable, such as the Economically weaker section (EWS), Low-income group (LIG), and Medium Income Group (MIG). These are generally the people who need the assistance, and thus the Government aims to provide the benefits for the same.

We have talked more about the benefits and the eligibility in subsequent sections.

Objectives of the Pradhan Mantri Awas Yojana

The scheme is also known under the title of 'Housing for All'. It has been initiated to counter the constantly growing real estate prices in India, making it extremely difficult for middle-class and lower-class families to afford a house. 

It aims to build 2 crore houses across the nation for the sections mentioned above. People taking these loans will receive a subsidy on the interest for the loan.

The Four Verticals of the Scheme

The four verticals under this scheme can be listed as follows: 

Types of the Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana Scheme has two components under it. This was generally done based on the different requirements of housing and funds in urban and rural areas.

It includes urban areas across the country and has over 4200 cities under its scheme. Some of the local bodies that are part of it are: Urban development authority, development area, notified planning, etc. All work towards providing Sanctioned houses, completed houses, and occupied homes to the residents in need.

Previously this scheme was under the name of Indira Awas Yojana. It aims at providing affordable houses to the needy for the construction of permanent dwellings. The scheme allocates funds worth 1.2 lakh rupees to people living on plains and 1.3 lakhs to people living in hills, problematic areas, and the northeastern states. This will allow the rural population to improve their condition and result in overall development.

Benefits of the Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana was established to fulfil the basic needs of the underprivileged sections of society. It has provided houses to many needy and underprivileged sections of society. Some of the benefits of this scheme are as follows.

The scheme has been designed so that the majority of the people living in slums are eligible for the subsidy offered. We are all aware of the sub-human conditions in which people live in various slums across the country. Thus, it is of paramount importance that such schemes help in the upliftment of the slum population and those living below the poverty line.

People in India suffer due to the problems of unemployment and less pay. This prevents them from accessing basic amenities such as housing, food, and clothing. It is a matter of concern.

Thus, this scheme launched by the Government promises to eradicate or reduce one of the evils in the nation, housing. Through the construction of pucca houses in urban and rural areas, the Government wants to improve and uplift the standard of living in general.

The houses are divided based on the needs and requirements of the specific individual. Various groups have been divided based on their income and section of society. This ultimately makes the process easy for the Government during the allocation of funds and helps with their needs as well.

The Government allowed those eligible for the Pradhan Mantri Awas Yojana to apply for loans to construct houses at lower or subsidised rates of interest. It works on the credit-related subsidy system. The borrowers of such loans receive a significant reduction while paying their interests. 

The PMAY encourages women to apply for loans. The scheme calls for a married man to add his wife's name as the applicant for the loan. This ensures the financial future of the wife. This has been done to prevent the oppression of women by society. It helps in promoting equality and uplifting the status of women. Thus, this adds another layer of significance to the scheme.

The materials used for constructing the houses under this scheme are using eco-friendly materials and building technologies. This reduced the load on the environment. Also, measures have been taken to reduce the air and noise pollution from construction sites. The houses are constructed of durable and high-quality materials. This reduces the need for remodelling and repair of the homes.

The unemployment rate in India is relatively high. Thus, any work that can be generated is a boon for society. The construction of such a massive number of houses requires manual labour. This opens job opportunities for the unemployed. Hence, we can see that the Pradhan Mantri Awas Yojana has been responsible for employing the unemployed indirectly.

Thus, we have provided the significant benefits of the Pradhan Mantri Yojana scheme. It has been able to touch millions of lives directly, and countless others have benefited from it.

  • No one in the applicant’s family must own any house in any part of the country

  • The categories are divided based on the annual income of the family. Thus, one's family income should not exceed 18 lakhs

  • If a married couple applies for the subsidy, then as mentioned above, this wife should be the principal applicant for the scheme

  • Senior citizens or disabled individuals will be given priority in terms of building houses

  • One should not be under any other housing scheme provided by the Government

The division of the monetary groups is generally based on the family's annual income. The groups are as follows: 

  • Middle-income Group One: If a family's annual income is below 12 lakhs, they are classified under this group. The people under this group are eligible for a maximum loan of 9 lakh.

  • Middle Income Group Two: To be within this group, one must have an annual income of between 12 to 18 lakhs. In this group, 12 lakh rupees can be taken as a loan. 

  • Lower Income Group: A family income of 3 to 6 lakh rupees falls under this category. 

  • Economically Weaker Section: Families with an annual income below three lakhs can apply under the economically weaker section.

It must be noted that anyone applying under this scheme should have subsequent income proof to be eligible for this scheme.


Now that we have understood the various eligibility criteria, we can apply under this scheme. The basic steps to apply are as follows:

  • Using your web browser, access the official website for the Pradhan Mantri Awas Yojana - https://pmaymis.gov.in/.  

  • Under the citizen assessment drop-down menu, apply for the Benefits under the other three components

  • Here the three components refer to the middle-income group, lower income group, and the economically weaker section

  • The next step requires one to enter their Aadhar details. This is a mandatory step for enrolment

  • After this, you will be redirected to the main application page. Here you will have to fill in your details correctly. Ensure to verify your details from official documents to prevent errors

  • Once the details have been filled correctly, you can enter the captcha and click on save. This will conclude your submission.

Conclusion

In this article, we have provided you with a detailed explanation of everything related to the Pradhan Mantri Awas Yojana. We have talked about the importance and the benefits that one can reap under this scheme. Further, a discussion about the eligibility criteria and the application procedure will help anyone looking to apply under this scheme. If one looks closely, one will be able to understand the sheer scale of this project. India is a developing nation, and various areas are still unfit for living a normal and healthy life. The Government with such schemes is trying to raise the general standard of living and provide everyone with an equal opportunity for a healthy life.

Pradhan Mantri Awas Yojana (PMAY) Related FAQ's

Ans: Only individuals falling under the EWS section are eligible for benefits under all the 4 verticals of PMAY. But the benefit can be availed from only form 1 vertical that is best suited to their needs.

However, LIG/MIG category is eligible under only the CLSS component of the Mission.

Ans: NHB, HUDCO, and SBI have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component by the Govt.

Ans: Primary Lending Institutions are Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks, or any other institutions as may be identified by the MoHUA. You can apply for a home loan from any of these organizations and avail of a subsidy.

Ans: The subsidy would be released by the Central Nodal Agencies based on the disbursements made by banks/other eligible financial institutions to the beneficiaries. The subsidy is disbursed by the CNA to the banks/other institutions who will in turn credit it to the beneficiary. This will be deducted from the principal amount. As a result, the EMI will be payable on the remaining portion of the principal amount.

Example: The borrower avails a loan for Rs. 8.00 lakhs and subsidy thereon works out to Rs. 2.20 lakhs, the amount (Rs. 2.20 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5.80 lakhs) and the borrower would pay EMIs on the reduced amount of Rs. 5.80 lakhs. That is how an individual will get a CLSS subsidy.

Ans: Yes, woman ownership of the house is mandatory for houses purchased or constructed with PMAY assistance only for the EWS category. For LIG and MIG categories, this is not mandatory.

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