Know about Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana came into existence on 25th June, 2015. It was the Ministry of Housing and Urban Affairs that decided to come up with this scheme. 

The PM Awas Yojana 2024 aims to provide pucca houses to all eligible urban households in order to address the lack of urban housing in certain parts of the country. PMAY (U) has been extended by the Union Cabinet till 31st December, 2024.

To know more about PM Mantri Awas Yojana, read this blog post completely.

What is PM Mantri Awas Yojana?

PMAY full form is Pradhan Mantri Awas Yojana. PMAY was launched in 2015. Pradhan Mantri Awas Yojana (PMAY) is an initiative by the Government of India to provide affordable housing units for the economically weaker sections of society, lower income groups and middle income groups of the Indian population.

With an emphasis on slum rehabilitation, affordable housing for the urban poor, and inexpensive housing for the rural poor, PMAY is being implemented in both urban and rural areas. The scheme promotes inclusive housing for all as well as environmentally responsible and sustainable housing alternatives. 

The government offers qualified beneficiaries financial assistance under PMAY for home renovations or building. Under the PMAY, a maximum subsidy up to ₹2.67 lakhs is offered for building new homes and up to ₹2.5 lakhs for renovating existing ones. 

In the first Cabinet meeting led by PM Shri. Narendra Modi after Lok Sabha Elections, the NDA government decided to offer assistance to a construction of 3 crore houses under PMAY. 

This initiative has been taken by the government to meet the housing needs of urban and gramin beneficiary families who are eligible for PMAY. The PMAY Urban and PMAY Gramin houses will be built with basic facilities like LPG connection, power connection and water tap connection.

What are PMAY Types?

There are 2 PMAY types namely PMAY Urban and PMAY Grahmin. Let’s discuss them in detail:

PMAY Grahmin (PMAY-G)

Pradhan Mantri Awas Yojana Grahmin scheme, or PMAY Grahmin scheme, was renamed as PMAY G in 2016. Before this, PMAY Grahmin was known as Indira Awas Yojana. Under PMAY Grahmin, affordable and accessible housing units are provided in rural areas to the beneficiaries who are eligible for them. Chandigarh and Delhi are excluded from the PMAY Grahmin scheme. 

Under PMAY G, the development costs up to 60% will be given by the center while the state will give the remaining 40%. However, in case of hilly regions and regions in north-east India, the center will give 90% of the development costs while the remaining 10% will be borne by the state.

In the Interim Budget 2024 speech, the Union Finance Minister stated that over 70% houses under PMAY in rural areas have been given to women as sole owners or joint owners. In addition to this, the government has taken up a target of constructing 2 crores PMAY G houses in the next 5 years according to Interim Budget 2024. This will be done in order to address the housing needs of the growing number of families in the country.

PMAY Urban (PMAY-U)

Pradhan Mantri Awas Yojana Urban scheme, or simply PMAY U scheme, is aimed at providing affordable houses in the urban areas of India. A total of 4,331 towns and cities are covered under PMAY U. 

There are three phases for the implementation of PMAY U out of which phase 1 and phase 2 have been completed. In phase 1, which took place between April 2015 and March 2017, 100 cities from different states and union territories were covered. In phase 2, which took place between April 2017 and March 2019, an additional 200 cities across different states and UTs were covered. In phase 3, all the cities which weren’t included in phase 1 and phase 2 will be covered and are aimed to be covered by December 2024.

What is the Eligibility Criteria for PM Awas Yojana?

In order to qualify for the PM Awas Yojana, the applicant must meet the following eligibility criteria:

• If the PMAY applicant belongs to the Economically Weaker Section (EWS), his annual house income must be Rs. 3 lakh and if he belongs to the Lower Income Group (LIS), his annual income must be between Rs. 3 lakh - Rs. 6 lakh.
• PMAY beneficiary should be max. 70 years of age.
• For interest subsidy for a maximum duration of 20 years, the applicant will be given a housing loan amount up to Rs. 6 lakh. On any exceeding amount, there’ll be an applicability of non-subsidised rates.
• The dwelling unit carpet Area (sq.m.) would be up to 30 sq.m. for applicants belonging to EWS category and up to 60 sq.m. for applicants belonging to the LIS category.
• Upgradation or renovation of a pucca house is not allowed under PMAY. 
• For an existing property, ownership/co-ownership of women is not a requirement but is compulsory in case of new possession.
• For every approved housing loan application, Rs. 3,000 will be paid in lump payment.
• Every eligible applicant will receive a maximum subsidy of Rs. 2.67 Lakh.
• In order to be eligible for becoming a PMAY beneficiary, the applicant should not have undertaken any financial assistance from the Central or State Government of India.
• Having an Aadhar card is a mandatory requirement for every applicant under PMAY.

What are PMAY Documents?

The following PMAY documents are required for applying for PM Awas Yojana:

• Aadhaar card 
• Applicant’s income proof
• Mobile number
• Residential address 
• Photograph 
• Details of the bank account to which the PMAY subsidy shall be credited

How to apply for PMAY?

If you want to learn how to apply for PMAY, follow these steps:

Step 1: Visit the official PMAY website to initiate the PMAY application process. Now, you have to scroll down to the ‘Citizen Assessment’ section.
Step 2: Select ‘Benefit under 3 components’ using the drop-down menu to proceed with your application. 

Step 3: Now, enter your Aadhaar details as this is compulsory for PMAY process.

Step 4: Thereafter, fill in your personal details such as your name, contact number, income details, bank account number and any other details asked.

Step 5: Cross-check all the personal details and then save the application form. 

Step 6: Now, enter the captcha code correctly before PMAY application form submission.

And just like that, you’ll complete the PMAY application process. For future reference, it is advised to take a printout of the submitted PMAY application form. 

Note: For now, this function has been disabled. 

What are the Benefits and Features of PMAY?

Pradhan Mantri Awas Yojana has various benefits and features which are mentioned below:

• As part of the Pradhan Mantri Awas Yojana a.k.a PMAY scheme, beneficiaries get subsidy interest of 6.50% per annum on housing loans for a duration of 20 years max.
• If the applicant is a senior citizen, preference of ground floor allocation will be given to him.
• Sustainable and eco-friendly materials are used for making houses under Pradhan Mantri Awas Yojana.
• The PMAY scheme covers a total of 4,041 statutory towns wherein 500 Tier-1 cities are given the top priority.
• The PMAY scheme is implemented as a mix of central and state government funding and private-sector participation.
• Under the PMAY program, subsidies on home loans, financial assistance for building houses, in-situ rehabilitation of slum inhabitants and credit-linked subsidies (CLSS) connected subsidies are provided.

Conclusion

Pradhan Mantri Awas Yojana was launched as an initiative of the Ministry of Housing and Urban Affairs to make housing affordable for all sections of the society. The Government of India understands how housing can be expensive and not everyone can afford to own a house. Therefore, PMAY was launched as an initiative to address the housing needs of the underprivileged sections of the society such as economically weaker sections and low income groups. 

Under the PMAY scheme, the eligible PMAY beneficiaries can receive a subsidy on their home loan interest rates in order to make it easier for them to build or buy a house and fulfill their dreams of owning a house.

Frequently Asked Questions (FAQs) about PMAY

Q1. What is PMAY full form?

A. PMAY full form is Pradhan Manti Awas Yojana. PMAY is a government initiative launched by MoHUA focused on providing affordable housing to all sections of the society, particularly EWS and LIG, through PMAY subsidies and PMAY benefits. 

Q2. Who all can avail PMAY benefits under Pradhan Mantri Awas Yojana?

A. Any citizen of India belonging to EWS or LIG or MIG category can avail PMAY benefits as PMAY beneficiary. However, the age of the PMAY applicant age should not be more than 70 to be a PMAY beneficiary.

Q3. What is the PMAY registration fee?

A. There is no PMAY fee for registration if you choose to apply online through the PMAY website. But in case of applying PMAY registration offline, the PMAY registration fee is Rs. 25 along with GST charges

Q4. Can an individual apply for the PMAY scheme more than once?

A. No, PMAY doesn’t allow individuals to register under the PMAY scheme for housing more than once. Once individuals provide their Aadhaar number (which is a mandatory requirement under this scheme) during the PMAY application process, the government can detect and penalize the offenders in case of any fraudulent activities.

Q5. How is PMAY classified?

A. PMAY is classified into two categories/types on the basis of the demographic area. These two categories/types are PMAY U (Pradhan Mantri Awas Yojana - Urban) and PMAY G (Pradhan Mantri Awas Yojana - Gramin)

Q6. Are state and central government employees eligible for the PMAY scheme?

A. As long as the state and central government employees fulfill PMAY eligibility criteria, they are eligible for Pradhan Manti Awas Yojana.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.