The introduction of the PMAY scheme by the government of India has made it easier for Indian citizens to buy a home. Read on to know more about how the important aspects of the scheme.

The PMAY or the Pradhan Mantri Awas Yojana is an ambitious scheme, which was introduced by the government of India in June 2015 to provide affordable housing for all. One of the main objectives of this scheme is to provide a pucca house to every Indian citizen by 2022, the year when India completes its 75th year of Independence. Under this scheme, the government aims to build sustainable homes using eco-friendly techniques in selected cities for the benefit of the underprivileged. Also, under the CLSS (credit linked subsidy scheme), the home buyers will get a subsidy on the interest component if they avail a home loan for purchasing a new home.


Key features of the Pradhan Mantri Awas Yojana

  • The central government of India will provide a grant of one lakh Rupees for the rehabilitation of the slums across India.
  • To encourage the people from lower-income groups and the economically weaker sections build or buy homes of their own, the government of India provides a subsidy of 6.5% on home loans.
  • The grant will be applicable only on the interest amount that the borrowers repay for a period of 20 years of the loan tenure, whichever is lower
  • Encourages women to be the co-applicants of the loan and be co-owners of the home by granting them a special discount on loans
  • All the new houses constructed under the scheme, will implement eco-friendly techniques and use environmentally sustainable materials
  • The senior citizens and the differently-abled people will be compulsorily granted accommodation on the ground floor
  • The new housing projects undertaken under the scheme will be as per the guidelines of the NBC – National Building Code and the NDMA – National Disaster Management Authority

Beneficiaries of PMAY

Every Indian citizen can avail the benefits of Pradhan Mantri AwasYojana including:

  • Economically Weaker Section or the EWS category – It includes families that have a maximum household income of not more than three lakhs
  • Low Income Group or the LIW category – It includes families whose total income is between three to six lakhs
  • Middle Income Group I or MIG I category – It includes families wherein the total annual income of all the members does not exceed 12 lakhs
  • Middle Income Group-II or MIG II category – It includes families that have a total annual income not exceeding 18 lakhs
  • Women belonging to the LIG and the EWS categories
  • People belonging to the Schedule Tribe, Scheduled Cast and Other Backward Class

How to get the subsidy under the PMAY scheme?

  • First and foremost, you can apply for a home loan with any lender of your choice that is listed under PMAY
  • The lender will assess your loan application, and if you satisfy all the eligibility requirements, the lender will then send your request to the Central Nodal Agency (CAN) for approval
  • Once the CAN approve, it will disburse the subsidy to the lender
  • When the lender receives the subsidy amount, they will then credit the amount to your loan account and your loan EMI will reduce from thereon
  • After the subsidy amount is received you can repay the EMI at the revised interest rate for the balance amount

The PMAY is an excellent scheme for all aspiring home buyers in India. You can apply for a home loan under the scheme and get subsidy on the interest repayment.