PMAY or Pradhan Mantri Home Loan Subsidy Scheme is a Credit Linked Incentive Scheme (CLSS) through which home loans are made available at interest rate of 6.5% onwards. This loan can be availed up-to 15 years and should be used for the specific purpose of housing. This scheme is introduced by Indian government to uplift the economic growth and for better living of the citizens whose income in a year is below 6 lakhs. Prime Minister, Mr. Narendra Modi with a noble mission launched this scheme.  And the aim is to have 2 crore housing in India by 2022. This scheme can be availed by anyone irrespective of your caste, religion and creed.

Benefits of Pradhan Mantri Home Loan Subsidy Scheme:

  • Helps everyone with housing solution by 2022
  • Including Scheduled Castes and Scheduled Tribes, everyone can enjoy this benefit if the annual income is below 6 lakhs
  • This scheme is beneficial for lower income group members, widows and transgender
  • With the help of special preferences senior citizens and differently abled people will get ground-floor houses
  • Scheme is targeted to urban areas

Basic Features of Pradhan Mantri Home Loan Subsidy Scheme:

  • Housing loans at subsidized rates are offered for 6.5% rate of interest up to 15 years tenure
  • Senior citizens and differently abled people will get ground-floor houses as special preference
  • For constructions eco-friendly and sustainable technologies will be used
  • Three phased project with the focus of ensuring 4041 statutory towns are covered as part of this scheme

Subsidies Aspects:

There are 4 aspects of Pradhan Mantri Home Loan Subsidy Scheme to make sure maximum benefits are offered to the less privileged categories in the country and they are:

  • Central Grant of average amount Rs. 1 lakhs will be offered to each PMAY scheme subscriber
  • Each beneficiary will be given Rs. 1.5 lakhs worth of Central Assistance for enhancing housing stock
  • 50 percentage subsidy will be offered for LIG & EWS through the credit-linked subsidy scheme
  • For new house and renovation purposes Rs. 1.5 lakh will be given to the urban poor.

How to Avail Home Loan Subsidy Under Pradhan Mantri Awas Yojana

Phases of Urban Pradhan Mantri Home Loan Subsidy Scheme:

The scheme is planned to be completed with 3 phases:

Phase 1: First phase is up-to March 2017 with the target of 100 cities across the country. These cities will get the benefit of enjoying housing with low rate of interest on loans.

Phase 2: Expected start date is April 2017 with the target of close to 200 cities and the objective remains the same

Phase 3: This phase will start from 2019 and is expected to end by 2022. This 3 year phase will cover all the remaining cities of the country

Cities and Towns shortlisted under Pradhan Mantri Home Loan Subsidy Scheme are:

  • Kerala: 15 urban as well as semi-urban regions
  • Gujarat: 30 urban and semi-urban regions
  • Telangana: 34 urban plus semi-urban regions
  • Maharashtra: urban plus semi-urban regions
  • Orissa: 42 urban as well as semi-urban regions
  • Madhya Pradesh: 74 urban plus semi-urban regions
  • Chhattisgarh: 75 urban as well as semi-urban regions
  • Rajasthan: 40 cities or towns
  • Jharkhand: 15 urban plus semi-urban regions
  • Jammu and Kashmir: 19 urban and semi-urban regions

Eligibility Criteria for Pradhan Mantri Awas Yojana

  • The household whose annual income lies between INR 6 lakh to INR 18 lakh can apply for the Pradhan Mantri Awas Yojana.
  • The applicants can include the income of the spouse for applying for PMAY.
  • In order to avail the benefits of this scheme applicant are only allowed to buy a new house. No second home can be purchased with the help of this scheme.
  • Only buying/construction of a new house is allowed, which means one cannot avail of this scheme to renovate or extend their house.
  • low-income group i.e. LIG and economically weaker sections are also eligible to apply for this scheme.
  • Scheduled castes and tribes are also eligible to apply.
  • Senior citizens and the physically disabled person can avail some additional benefits on this scheme.
  • The applicant’s family should not own a pucca house on his/her name or on the name of any other member of the family in any part of India.
  • In case of a married couple, any one of them can apply individually or can also have a joint ownership and can apply for a single subsidy.
  • In order to avail of this scheme, the beneficiary family should not have availed any central assistance or any housing scheme by the Government.

The Range of Subsidy and Criteria to Avail PMAY

Beneficiary having an annual income between INR 6 lakhs to INR 12 lakhs can avail a subsidy of 4.00% on the interest rate. The Minimum tenure period required to avail this scheme is of 20 years. The loan amount required to qualify for this subsidy is INR 9 lakhs.

Beneficiary having an annual income of between INR 12 lakhs to INR 18 lakhs can avail a subsidy of 3.00% on the interest rate. The minimum tenure required in order to avail this subsidy is 20 years. The loan amount Required to qualify for this subsidy is INR 12 lakhs.

In order to apply for this scheme, all you need to do is:

  • Download from the official website- Pradhan Mantri Home loan subsidy scheme the application form
  • Print this and fill it up with supporting documents. It is essential to fill accurate information to avoid rejection
  • Submit the form to an office accepting these registration submissions in nearby locations

The agencies in India that support this scheme are Development Authorities, Housing Boards and Urban Local Bodies. This project is also called as the “Housing for All” project and nearly 1604 people have registered for this scheme already. Apart from these, application priority is given if the applicant is a women and sole bread-winner of the family. Along with this senior citizen or differently-abled priority is offered by the government.

The Direct Benefit Transfer (DBT) is a program through which the beneficiaries will directly get the money expected to receive their bank accounts in the form of installments. This will avoid people going to banks and offices for updates and receive money. You can simply visit the website to check the details of Phase 1 of this program to check in which phase your city is covered. Under this scheme close to 11 lakhs houses are already granted by the Government of India for the urban poor in the past 1 years’ time.

(Updated 21-08-2018)