Launched in June 2015, the Pradhan Mantri Awas Yojana Scheme (PMAY) is a housing scheme started by the Government of India for the urban and the rural poor. The scheme for the urban poor is titled Pradhan Mantri Awas Yojana – Urban (PMAY – U) and the one for the rural poor is titled Pradhan Mantri Awas Yojana – Gramin (PMAY – G). The scheme aims to construct pucca houses for the homeless, those with kutcha houses, or slum dwellers.
All about the scheme
Under this scheme, the government has pledged to construct about 2 crore houses by 2022, using housing loan interest subsidy schemes for Economically Weaker Sections (EWS) and Low-Income Groups (LIG). Other government schemes such as the Ujjwala Yojana, Saubhagya Yojana and Jan Dhan Yojana have been integrated with the PMAY to ensure basic facilities such as LPG connection, electricity and toilets in the homes constructed or bought under this scheme.
The PMAY-U covers 4,331 towns and cities. According to data from the Ministry of Housing and Urban Affairs, the total number of houses sanctioned till date stands at 83.63 lakh. Out of these, 26.08 lakh houses have already seen completion, as of 1st July 2019. The number of occupied houses stands at 23.97 lakh. The total allocated investment is Rs. 4,95,838 crores, of which, Rs. 51,414.5 crores have been released.
The PMAY-G, earlier known as the Indira Awas Yojana, aims to promote affordable housing for rural India (except Delhi and Chandigarh). It offers financial assistance to the homeless in building pucca houses. Those living in the plains are eligible to receive up to Rs. 1.2 lakhs. Those in North-Eastern, hilly areas, and other difficult terrains can receive up to Rs. 1.3 lakhs.
Certain parameters have been set by the Government of India regarding eligibility. These are as follows:
- For a person with an annual income of less than Rs. 3 lakhs (EWS) or between 3-6 lakhs (LIG), the interest subsidy on a loan amount of less than Rs. 6 lakhs is 6.5%. Post the 6 lakh threshold, the financer’s normal Home Loan interest rates will hold. The carpet area of such homes cannot be more than 30 square meters. The maximum loan tenure is 20 years.
- For a person with annual income between Rs. 6-12 lakhs, the interest subsidy on a loan of less than Rs. 9 lakhs is 4%. Post the 9 lakh threshold, the financer’s normal Home Loan interest rates will hold. The carpet area of such houses cannot be more than 120 square meters. The usual loan tenure is 20 years.
- For a person with annual income between Rs. 12-18 lakhs, the interest subsidy on a loan of less than Rs. 12 lakhs is 3%. Post the 12 lakh threshold, the financer’s normal Home Loan interest rates will hold. The carpet area of such houses cannot be more than 150 square meters. The usual loan tenure is 20 years.
- To be eligible for this scheme, the beneficiary must not possess a pucca house in any part of India.
People belonging to economically weaker sections, lower-income groups, scheduled castes and scheduled tribes can apply for loans under this scheme. Women residing in metros, tier I, tier II and tier III cities can also apply for these loans.
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