The Pradhan Mantri Awas Yojana (PMAY) is a ray of hope for the urban Indian poor, who either do not have a roof of their own or who live in poor sheltered structures or rented houses. Launched in June 2015, it is a flagship scheme started by the current NDA government and upholds the motto of “housing for all by 2022”. The scheme is aimed at building more than 2 crores, affordable houses with basic amenities of water supply, toilet, and 24X7 electricity supply. All this construction is to be undertaken within 7 years of time, starting from 17 June 2016 to 31st March 2022.
Beneficiaries of the PMAY scheme
The scheme is concerned with the following categories of the population who are the immediate beneficiaries:
- economically weaker sections (EWS) – annual income is below Rs.3 lakhs
- low-income groups (LIG) – annual income is between Rs.3 to 6 lakhs
- mid-income groups (MIG) – MIG 1, with annual income between Rs.6 to 12 lakhs
MIG 2, with annual income between Rs.12 to 18 lakhs
PMAY and the Subsidies
The subsidies offered under PMAY scheme on housing loan are as per the Credit-Linked Subsidy Scheme (CLSS). This offers considerable benefits for availing the PMAY scheme, in the form of subsidies on their housing loan interest. The PMAY subsidies on housing loan interest can be understood as follows:
- For lower income groups, an interest subsidy of 3 percent to 6.5 percent is provided for loans amounting to Rs.6 to 12 lakhs. This interest subsidy of 6.5 percent is provided for a tenure of 15 years.
- For mid-income groups, a loan amounting to Rs.12 lakhs has been made available, with an interest subsidy of 3 percent.
Even the rural population is given the chance to benefit from the scheme. An interest subsidy of 3 percent on a loan of Rs.2 lakhs is provided to the rural poor for construction of new houses or extension of the old ones.
Eligibility to Apply for PMAY
You can apply for the PMAY scheme if:
- Your family has a net income ranging from Rs.6 to 8 lakhs per annum, inclusive of both the spouses.
- You do not own a prior residence in any part of the country and are applying for your first house.
Other details of PMAY scheme
- The people from EWS category will be given direct financial assistance of Rs.1.5 lakhs
- The scheme aims to promote women property ownership by allotting houses in the names of female family members. Also, by giving preference to women applicants, including widows and unmarried women
- Transgender and SC/ST groups will also be given preference
- Construction of houses under PMAY scheme will make use of eco-friendly technology
- Preference to differently-abled and elderly will be given while allotting houses on the first floor of the buildings
Larger Impact of PMAY scheme
Broadly speaking, the overall impact of Pradhan Mantri Awas Yojana should be seen in terms of:
- Better housing for the slum population with help of private developers
- Turn the dream of owning a house into a reality for many Indian families