Pradhan Mantri Awas Yojana (PMAY), ‘Housing for All’ by 31 March 2022, was launched in June 2015 by the Central Government of India led by Prime Minister, Mr. Narendra Modi. The total financial aid of Rs. 2 trillion is allotted for this mission. The scheme aims at providing affordable housing to urban people of the country. It also aims at building 2 crores houses for the Low Income Groups and Economically Weaker Sections from the urban poor sector. The housing will be provided in urban areas by 2022.

This mission is also known as Prandhan Mantri Home Loan Subsidy Scheme and falls under CLSS (Credit-Linked Incentive Scheme). Under this scheme, housing loans are offered at 6.5% interest rate onwards. The Central Government will offer assistance in the range of Rs. 100,000 and Rs. 230,000 under the following components:

  • Affordable housing through Credit Linked Subsidy.

  • In-situ slum redevelopment using land as a resource with private sector participation.

  • Beneficiary led house enhancement/construction.

Features of Pradhan Mantri Awas Yojana

Below-mentioned are the features and benefits of PMAY.

  • PMAY is a three-phase project and focuses to ensure 4041 statutory towns.

  • Sustainable and eco-friendly technologies will be used to construct the houses.

  • The scheme is available for individuals whose household income is below Rs. 3 lakhs to those with household income of less than Rs. 18 lakhs.

  • As per the income group, the scheme is divided into different categories having different benefits.

  • Loan amount can be used for specific purpose of purchasing houses only.

  • This tenure of the loan is 15 years.

  • Differently-abled people and senior citizens will get a special preference to choose houses on the ground floor.

Eligibility Criteria for PMAY

Applicants are divided into the following groups, according to which the eligibility criteria for the scheme are decided.

Group

Eligibility Criteria Details

EWS or Economically Weaker Section

Group I is for the EWS population from urban areas. Here, the annual household income of the applicant needs to be less than Rs. 3 lakhs.

LIG or Light Income Group

Group II is for people with household income per annuam is between Rs. 3 lakhs and Rs. 6 lakhs.

MIG1 or Medium Income Group

Individuals who come under the MIG1 group are the ones with annual household income below Rs. 12 lakhs. Those who fall in this category can take loans up to Rs. 9 lakhs to construct a house.

MIG2 or Medium Income Group

Individuals who come under MIG2 category have an annual household income between Rs. 12 lakhs and Rs. 18 lakhs. Those who belong to this category can avail a loan up to Rs. 12 lakhs.

Minorities and Women

Women who fall under LIG/EWS categories can avail this scheme with special benefits.

Other Eligibility Criteria for Pradhan Mantri Awas Yojana

  • It is mandatory for recipients to mention name of their spouse or mother when enrolling to the subsidy.

  • Widows and transgender individuals from a lower income gatherings society, scheduled tribes, scheduled castes, and urban poor may get an inclination if the opt for this subsidy plan.

  • The house in question must be a new construction and the applicant’s first self-owned house.

Changes Made in GST for Housing Purpose

A person, who will purchase a house for the first-time under the Pradhan Mantri Awas Yojana, needs to pay 8% as GST charge, if the purchaser opts for a home loan via CLSS. Earlier the GST rate was 12%, but it has been since then slashed by 4%.

PMAY Subsidies

The primary goal of this mission is to offer less privileged sections of India betterment and upliftment in terms of housing under following subsidies.

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