PMAY – Pradhan Mantri Awas Yojana, Housing for All Scheme

India such a large country having 1.3 billion people, World’s largest democracy. Unfortunately, India still lacks behind in terms of homes available for people according to the global index of having homes. Bread, Clothes & Home are few essentials things of any common individual’s life. When it comes living, these are considered as a must to have things. Bread & Clothes can be arranged easily as far costing is concerned but Home, it is tough to get it for poor people in a country like India even after the 70 years of Independence.

Housing for All by 2022- PM Narendra Modi “Vision”
This time Government of India & Honorable Prime Minister of India Narendra Modi took a serious note of it for providing affordable “Housing for All”. Housing for all is a scheme which was started to make available homes for people who need it badly to live their lives in a carefree manner. But in the end, the name of this scheme Housing for All changed to Pradhan Mantri Awas Yojana.

Introduction to Pradhan Mantri Awas Yojana

It is Housing for All plan of Government of India for a period of 7 years, now Pradhan Mantri Awas Yojana. PMAY was started in 2015 by the Government of India towards building safe houses for all in India. It’s a vision to provide a home to every individual until 2022. Pradhan Awas Yojana is being accepted by common people at a large scale because of its diverse benefits in terms of enabling subsidy (Rs. 1 lakh to 2.30 lakh) on interest paid against loans taken for building a home.

PMAY Phase 1– Phase One of Pradhan Mantri Awas Yojana has started from April 2015 and worked till March 2017. As per GOI plan, about 100 cities get developmental projects and work started and completed during this period.
PMAY Phase 2 – Phase 2 of PMAY started in April 2017 till March 2019. 200 more cities need to be covered under this scheme other than phase 1.
PMAY Phase 3 – The Third phase of PMAY will start in April 2019 which will undergo until March 2022 to provide housing for all to all left cities in phase 1 & 2.

Different Scheme for Urban & Rural People

PMAY (Urban)

It is designed for people who are living in urban areas in India. They can apply under this scheme if they are homeless to get benefits of PMAY urban. People from the slum areas in cities are going to get benefit under this scheme. They can now have their homes and getting their application approved on the basis of eligibility criteria for pradhan mantra awas yojana urban.

PMAY (Gramin)

Especially, designed for Rural people who are living under poverty and don’t have access to their personal home. Poor people from economically weaker section will get more benefit from this.

Beneficiaries of PMAY:-

There are various categories which have been identified by the government under which they will provide benefits to people on the basis of their income etc. All of them are given below.
1-      Economically Weaker Section (EWS)
2-      Low Income Group (LIG)
3-      Medium Income Group (MIG 1)
4-      Medium Income Group (MIG 2)
5-      Women
6-      ST
7-      SC

List of Documents required to avail Loan

Identity Proof: A document needed to showcase you identify “Who are you” like Aadhar card, Driving License, Pan Card, etc
Address Proof: Proper address proof which can justify your current address like Voter Card, Passport, etc
Income Certificate: To differentiate between various income groups of EWS, LIG, MIG 1, MIG 2. The government needs to check income certificate which shows your yearly income from all sources. It shows “How much you are earning?”
CLSS Eligibility: If you are eligible for CLSS category then you can cut down your Home Loan EMI. Read more details below.
Credit Linked Subsidy Scheme (CLSS) – It’s an additional benefit under PMAY Scheme with which Middle Class, Lower Income Group & Economic Weaker sections of society can get cut down their EMI over 2000 INR per month because of this subsidy on interest.

Features of Pradhan Mantri Awas Yojana

1- The Government of India (GOI) is about to provide a subsidy of 6.5% on housing loans taken by applicants for a maximum period of 20 years from the date of starting. The interest rate would depend on the basis of the category of beneficiary like EWS, LIG, MIG or women, etc.
2- Primarily, the houses will be provided to a female member of a family.
3- During the allotment process of homes, ground floors will be allotted to differently abled persons on a priority basis because they might be facing issues.
4- The houses to be built on the eco-friendly model under PMAY.

PMAY Lock-in-period:- On a pre-assumed basis government has tried to remove fake beneficiaries under this PMAY scheme. A lock-in period of 5 years has been made mandatory by the government to escalate fake beneficiaries. The applicant can’t sell their properties until a 5 years period of time.

How to Apply for Pradhan Mantri Awas Yojana -PMAY Application Form

There are several ways in which you can apply for PMAY.

1- Online Application Process

To make the application process easy, the government has started an online portal where applicants can apply online after reading all the criteria’s
To Apply online –  PMAY Urban  & PMAY Gramin

2- Through the Common Service Center (CSC)

There are over 7000 active common service centers are there across states and union territories established by the help of the Government of India. CSC’s are providing various types of services to common people under Digital India mission.

That’s why the government decided to avail the facility of online application forms under PMAY. Applications can be filled at their end.
After the online application, you need to check whether you are eligible for the scheme or not. Check the bank or NBFC where you have applied for the loan under PMAY or you can also check it online. http://pmaymis.gov.in/Search_Name.aspx

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Author Since: Jan 17, 2019

Anoop Bansal, a professional Chartered Accountant based in the National Capital - Delhi. I have worked for the top-notch Indian and International banking firms for the past 10 years. Currently, I work at emi-calculator.loan blog and a financial consultant for different SMEs in India. Follow me on Facebook, Twitter and Linkedin for more information.

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