The PMAY, or Pradhan Mantri Awas Yojana, is a scheme by the Ministry of Housing and Urban Poverty Alleviation launched in 2015. Its main objective is to provide pucca houses to economically backward people in rural and urban areas at extremely economical prices. The scheme was originally planned to end in 2022; however, it has been extended until 2024. Continue reading to know every detail of the PMAY scheme.
What is PMAY?
Pradhan Mantri Awas Yojana is a Credit-Linked Subsidy Scheme launched on June 25th, 2015. This Yojana aims to ensure pucca houses are available for all eligible citizens. The plan is to avail pucca houses to Economically Weaker Sections (EWS) and Low-Income Groups (LIG), Middle Income Group-I or MIG-I, Middle Income Group-II or MIG-II. Eligible people get home loan subsidies to purchase, construct, or improve and extend housing.
The MIG-I category will have a 4% interest subsidy for loans up to INR 9 lakhs, and the MIG-II category will have a 3% interest subsidy for loans up to INR 12 lakhs. People can obtain loans for extra needs, but they won’t be eligible for any subsidies for the extra amount.
Types of PMAY
There are two types of PMAY which are-
PMAY-Grahmin (PMAY-G)
Earlier named Indira Awas Yojana, this scheme is now called PMAY-G. This framework envisages the provision of housing units that are affordable and easily accessible for eligible rural households in the country. The central government would contribute 60% of the construction costs under the scheme, while the state shall bear the rest. In the case of hilly areas or northeast regions, the centre will fund 90% of the costs, and only 10% shall be borne by the state.
In her interim Budget speech for 2024, the union finance minister disclosed that more than 70% of households under PM Awas Yojana are allotted in rural areas to women as sole/ joint owners. The government has also targeted constructing two crore PMAY-G houses in five years in the interim Budget 2024 for the housing needs of the growing families in India.
PMAY Urban
The housing e-scheme focuses on providing affordable dwelling units in urban areas, which includes about 4,331 towns and cities. PMAY-U has been implemented in three phases.
The first phase was from April 2015 to March 2017, including 100 cities across various states and union territories. Phase two extended approximately from April 2017 to March 2019 and covered additional 200 cities of the country. Phase 3 shall include all the cities excluded from Phases 1 and 2 and is stipulated to be completed by December 2024.
Who is eligible for PMAY?
The following are the eligibility criteria for PMAY:
- Neither the applicant nor any household member should own a pucca house in any part of the country.
- PMAY can be availed by households with annual income not exceeding INR 18,00,000 (in MIG II category).
- No one can claim the benefits of PMAY on pre-constructed houses.
- The individual and family applying for PMAY should not have availed themselves of any assistance from the central or state government for housing.
- Following 2011 Census data, all statutory towns and cities notified subsequently under PMAY will be eligible for coverage area.
- Senior citizens and differently-abled individuals are entitled to ground-floor accommodation.
- Two married people are eligible for joint ownership or a single subsidy for married applicants applying for the Govt home scheme.
Important Guidelines for Pradhan Mantri Awas Yojana (PMAY)
Below are the guidelines for the scheme’s availing.
- Ensure that your builder is RERA-registered: RERA is a Government Act established to protect home buyer interests. All commercial and residential real estate projects must register with it.
- Ensure That Your Lending Bank is Linked with PMAY: There are many home loan providers affiliated with PMAY. So, make sure to double-check this very important aspect with the lending bank you would be using for a home loan.
- Know your eligibility from your income point of view: A borrower is eligible for PMAY benefits if the family income does not exceed the income threshold of Rs. 18,00,000.
- Documents That Are Required for Pradhan Mantri Awas Yojana Registration: The documents needed for application purposes vary from salaried individuals to self-employed regarding the PMAY Program.
- For Salaried Applicants
Thus, for salaried persons, it is very necessary to present the following documents if they avail of CLSS benefits.
- (Download from the official website)
- The PAN card is mandatory, whereas other identity proofs, such as the Aadhaar Card, Voter ID Card, Driving License, Passport, Photo Credit Card, or other Photo-identity card issued by government authorities, must be provided as additional identity proof.
- The Acceptable Documents include a valid Passport, Aadhaar Card, Utility Bill, Voter ID Card, Rent Agreement, Life Insurance Policy, Residence Address Certificate, Saving Bank Account Statement from the Post Office, Property Tax Receipts, Credit Card Statement (not older than three months), etc.
- ITR or most recent Form 16, six months’ worth of bank statements, and the last two months’ worth of pay stubs. An allotment letter or buyer agreement, a chain of property documents (if necessary), an agreement to sell, and a copy of the receipts for any payments made to the developer.
- For Self-employed Applicants
Self-employed persons are required to present almost the same documents as required from salaried individuals. Further, they would have to add to these details of their business, besides those mentioned as income proofs.
- Business documents are mandatory. Such proof can be a trade license certificate, a Shop and Establishment certificate, a Sales Tax, PAN Card, or VAT registration certificate, a SEBI Registration Certificate, a Memorandum of Association, a Partnership Deed, etc.
- Documents can include ITR for the previous two years, Profit and loss, and balance sheet information. The last six months’ account statement for the business and a similar one for the individual’s private bank account will have to be provided.
Before the application, one should be doubly sure of being eligible to administer the Pradhan Mantri Awas Yojana subsidy. The applicant should also check whether his/her name is among those listed as beneficiaries for awarding subsidy benefits.
Who Will Benefit from PMAY-Urban 2.0?
The PMAY-Urban 2.0 scheme would benefit multiple strata of society. Among them, the following assume significance as beneficiaries:
- Women, Transgender, and Other Vulnerable Groups
Transgenders, widowers, unmarried, separated-from-other halves, and many others are vulnerable groups that are given focus during allocation of amounts for housing.
- Economically Weaker Sections (EWS)
EWS comprises families or individuals with an annual income of up to ₹3 lacs. PMAY-Urban 2.0 scheme majorly focuses on this group.
- Low-Income Groups (LIG)
LIG includes those families or individuals whose annual income is between 3 and 6 lakhs.
- Middle-Income Groups (MIG)
MIG are families or persons having an annual income within the range of ₹6 and ₹9 lakhs.
| Economic Sections | Annual Income Range | Eligible Subsidy (%) |
| EWS | Upto Rs. 3 Lakh | 6.5 |
| LIG | Between Rs. 3 Lakh and Rs. 6 Lakh | 6.5 |
| MIG I | Between Rs. 6 Lakh and Rs. 12 Lakh | 4 |
| MIG II | Between Rs. 12 Lakh and Rs. 18 Lakh | 3 |
A family’s income must be more than Rs. 18 Lakh per annum to be ineligible for the Pradhan Mantri Awas Yojana subsidy.
| Details | EWS | LIG | MIG |
|---|---|---|---|
| Interest Subsidy | 4% per annum | 4% per annum | 4% per annum |
| Maximum Loan Amount for Subsidy | ₹3 Lacs | ₹6 Lacs | ₹9 Lacs |
| Maximum Subsidy Amount | ₹1.80 Lacs | ₹1.80 Lacs | ₹1.80 Lacs |
Details about the Pradhan Mantri Awas Yojana scheme for urban areas. To maximize the benefits that PMAY-U can offer, the following table has been organized to cover all changes and benefits of the scheme for prospective borrowers.
| Features | MIG-I | MIG-II |
| Interest rate subsidy | 4.00% | 3.00% |
| Maximum carpet area of a dwelling unit | 160 sq. m | 200 sq. m |
| Maximum subsidy amount | Rs. 2.35 Lakh | Rs. 2.30 Lakh |
| Maximum Home Loan Quantum for Subsidy | Rs. 9 Lakh | Rs. 12 Lakh |
| Maximum home loan tenure | 20 years | 20 years |
| The discount rate for interest subsidy NPV | 9% | 9% |
How to Apply for PMAY (Pradhan Mantri Awas Yojana)?
Therefore, the Pradhan Mantri Awas Yojana application can be done either online or offline. In the PMAY, there are two types of applications: benefit under the other three components and slum dwellers.
Online Application
You must visit the PMAY website
Benefit Under Other 3 Components
PMAY benefits under the other three components application can be acquired by just following these simple steps: The following steps would guide you with PMAY benefit under the other three components application:
- Log into http://pmaymis.gov.in/
- Log into the portal using your Username, Password, and Captcha code. If you failed to create the login credentials on the page, click Activate User.
- Upon successful login, the benefit under the other three components appears under the Citizen Assessment Tab.
- Next, enter your Aadhaar card details and click on Check. If verified, you will be taken to the next page.
- Further, in the PMAY application format, you must provide all relevant information about your income, residence, bank account details, family details, religion, caste, etc.
- After filling in all the details, tick the box I am aware of and type in the captcha code.
- Go through all the details, and click submit to complete the online application.
- Note the application number. You will need it later to find out the status of your application.
- Download the application form and submit it with all supporting documents to the nearest Common Service Center (CSC). Alternatively, you may send your documents to banks owned by any private or government authority or financial/housing institution that is providing such a service.
Slum Dwellers
PMAY application procedures for slum dwellers are as follows:
- Visit http://pmaymis.gov.in/
- Log in to the portal using your Username, Password, and captcha code. If you don’t have login credentials, click on ‘Activate User’ on the login page.
- Upon successful login, “Slum Dwellers” can be accessed under the “Citizen Assessment” tab.
- Enter all requested information, including the Aadhaar card number, and click check. After successful verification, you will be logged in to the next page.
- Then, in the PMAY form for Slum Dwellers, enter all necessary information about the applicant, including personal details, residential details, income, bank account, family details, caste, religion, etc.
- Check the claim box & enter the captcha after entering all the details.
- Crosscheck all the details and click submit for your online application.
- Now, write down the application number. You will need this application number to check the progress of your application.
- You must either download and take the application form to the nearest Common Service Center (CSC) along with all relevant documents or send it through private banks, government banks, or financial/housing institutions that provide this service.
Offline Application
PMAY can be applied offline. The following procedures guide offline application:
- Go to the nearest Common Service Center (CSC).
- Obtain the PMAY application form at INR 25 + GST.
- Duly fill out the form & apply along with all relevant attachments.
Note: No businesses or private individuals can gather funds to benefit from this initiative.
How to Edit Your Details After Submitting an Application for PMAY?
If you want to edit the submitted application, then:
- Go to the PMAY Website: The portal where you submitted your application.
- Locate Your Application: You can go to the ” Edit Your Details” section, which may require you to log in or enter your application ID and other personal details.
- Effects thereafter: After accessing the application, modify it wherever necessary.
- Submit the Edited Application: After changing it, submit your application again. Remember to keep a copy of the updated acknowledgement.
How to Check PMAY Application Status
To track your PMAY application status:
- Go to the PMAY Website: Use the links above depending on whether your application is under an urban or rural scheme.
- Enter Application Details: In the “Track Your Assessment Status” section, you will provide your application ID and the other required details.
- Status View: The application status will now be available on your screen after you complete the details.
How long does it take to get PMAY approval?
It takes around three to four months for the government to evaluate all details regarding the applicant and then sanction PMAY approval. The first step is applying for a PMAY home loan. While the procedure for application is to be completed, an applicant will generate an application ID or assessment ID. This ID will help in tracking the PMAY subsidy approval status. Any applicant seeking the PMAY approval will have to go through these five steps:
- Generate a unique application ID.
- Primary Lending Institution (PLI) carries out due diligence by
- Uploading subsidy claim on Central Nodal Agency Portal.
- Approval for subsidy claims.
- Disbursement of subsidy claims to the PLIs.
Once done, the individual may access their loan statement to see whether the subsidy has been credited to their account. If their loan amount’s EMI is now lower than what it was before, then that means their subsidy is approved.
Conclusion
PM Housing Scheme/PMAY-Urban 2.0 is an important vision that would help realize the dream of all sections in India regarding housing. The idea has been extended to incorporate inclusivity and sustainability to reach a wider section of society. PMAY-Urban 2.0 offers the economically weaker section and low-income or middle-income groups, an opportunity to buy a home with the interest subsidies. Any individual desiring to reap the benefits of this transformational housing scheme needs to understand eligibility features, benefits, and application procedures under the scheme to enjoy its benefits.