Connect with us

India

What is Pradhan Mantri Awas Yojna (PMAY)?

The scheme targets (EWS), (LIG), and (MIG) of society. The scheme also has a special focus on women, Scheduled Castes, Scheduled Tribes, differently abled, and senior citizens.

Published

on

Pradhan Mantri Awas Yojna
NB

From eligibility criteria to the application process, discover everything you need to know about the Pradhan Mantri Avas Yojna (PMAY) in this comprehensive article.

Pradhan Mantri Awas Yojna (PMAY) is a flagship scheme of the Government of India. The scheme was launched on 25 June 2015 by Prime Minister Narendra Modi with an ambitious goal to provide affordable and quality housing to all eligible urban and rural poor by 2022, the year when India will celebrate its 75th anniversary of independence.

Though it missed the deadline and was unable to reach its goal PMAY has the potential to transform the lives of millions of people by providing them with a safe and dignified living environment.

PMAY covers four main components:

  1. In-situ slum redevelopment (ISSR): This component involves redeveloping existing slums on the land where they are located, using private participation, and providing pucca houses to slum dwellers.
  2. Credit linked subsidy scheme (CLSS): This component provides interest subsidy on home loans taken by eligible beneficiaries from banks and other financial institutions for purchasing or constructing new houses or enhancing existing ones.
  3. Affordable housing in partnership (AHP): This component involves providing central assistance to states, union territories, urban local bodies, and other agencies for promoting affordable housing projects in partnership with private developers or public agencies.
  4. Beneficiary-led construction/enhancement (BLC): This component enables individual eligible beneficiaries to avail of central assistance for constructing new houses or enhancing existing ones on their own land or land allotted by the government.

The scheme targets the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) of society. The scheme also has a special focus on women, Scheduled Castes, Scheduled Tribes, differently abled, and senior citizens.

Eligibility: Any Indian citizen who does not own a pucca house anywhere in the country is eligible to apply for the scheme. The income criteria for different categories are as follows:

EWS: Annual household income up to Rs. 3 lakhs
LIG: Annual household income between Rs. 3 lakhs to Rs. 6 lakhs
MIG-I: Annual household income between Rs. 6 lakhs to Rs. 12 lakhs
MIG-II: Annual household income between Rs. 12 lakhs to Rs. 18 lakhs

Subsidy: The scheme provides subsidies on home loans taken by eligible beneficiaries. The subsidy rate varies depending on the income category:

EWS/LIG: 6.5% subsidy on a loan amount up to Rs. 6 lakhs
MIG-I: 4% subsidy on a loan amount up to Rs. 9 lakhs
MIG-II: 3% subsidy on a loan amount up to Rs. 12 lakhs

The scheme provides various benefits such as:

  1. Subsidy on interest rates ranging from 3% to 6.5% depending on the income category and loan amount.
  2. Subsidy on principal amount up to Rs. 2.67 lakh depending on the income category and house size.
  3. No processing fee or prepayment penalty on home loans.
  4. Flexibility in choosing the house size, design, and location as per the beneficiary’s preference and affordability.
  5. Option to avail additional loans for meeting other expenses such as furniture, fixtures, etc.
  6. Technical support and guidance for ensuring quality construction and compliance with building norms and standards.
  7. Grievance redressal mechanism through online portal, toll-free number, and mobile app.

PMAY is being implemented by the Ministry of Housing and Urban Affairs (MoHUA) for urban areas and by the Ministry of Rural Development (MoRD) for rural areas. The scheme has made significant progress since its launch and has sanctioned over 1.2 crore houses, grounded over 82 lakh houses, and completed over 48 lakh houses as of May 2021. The scheme has also leveraged various innovative technologies, such as Global Housing Technology Challenge (GHTC), Affordable Rental Housing Complexes (ARHC), and Light House Projects (LHP), to enhance the speed, quality, and affordability of housing construction.

PMAY is a visionary scheme that aims to fulfill the dream of every Indian citizen to own a dignified and secure shelter. By providing affordable housing to all, the scheme also contributes to the social, economic, and environmental development of the nation. The scheme has been designed with the needs of different income categories in mind and has a robust monitoring and evaluation mechanism to ensure its effective implementation. PMAY has the potential to transform the lives of millions of people by providing them with a safe and dignified living environment.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *