What is Pradhan Mantri Awas Yojana? How can a common man use this scheme?

In a country like India, where the population is increasing day by day, and people are finding it tough to manage the basic expenses, the idea of owning a property is far from beyond. In 2014, when Narendra Modi led BJP Government came in power, it paid heavy emphasis to this issue. As a result, Prime Minister of India proposed a scheme which aims to provide housing to all middle-class and the poor citizen of India by 2022.

What is Pradhan Mantri Awas Yojana?

The Government of India launched this scheme in 2015 with a mission to give homes to middle-class and poor people of India at subsidized home loan rates. PMAY aims to provide housing to all people of India by 2022. Drafted in 3 phases, the final phase of this scheme will conclude in 2022. The Government will short-list a few cities and towns, and affordable houses using eco-friendly construction methods will be built. Under Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme (PMAY CLSS), the Government provides home loan to three major categories based on their income:

1) Economically Weaker Section (EWS): Income is up to 3 lakh rupees per annum.

2) Low Income Group (LIG): The income is between 3.01 lakh rupees to 6 lakh rupees per annum.

3) Middle Income Group (MIG): The MIG’s have two classes as below.

(i) MIG1: The income is between 6.01 lakh rupees to 12 lakh rupees per annum.

(ii) MIG2: The income is between 12.01 lakh rupees to 18 lakh rupees per annum.

How can a common man use this scheme?

A common man should first know Pradhan Mantri Awas Yojana details, and the benefits offered in his income category. It is important that the family applying for the PMAY scheme should not have taken help for any housing scheme in the past. All members of the family should possess the Aadhar Card as valid document proof.

This scheme provides an additional feature – An unmarried son or an unmarried daughter can also apply alongside their parents, provided they work and generate substantial income to pay EMI. Also, married couples who live in a rented house can apply for PMAY for a single property under sole/joint ownership.

How can a common man apply?

After having sufficient information about Pradhan Mantri Awas Yojana details and the home loan interest subsidy schemes for different categories,  one can apply online from the website  http://pmaymis.gov.in/. Once you complete filling the form, you will receive a system-generated application number that is helpful for documentation in the future. You should download and print the form and submit it to the nearby CSC office centers or banks along with the required documents.

To make things simple, the table summarizes this scheme and interest rates for the home loans as per the category.

Particular  EWS LIG MIG1 MIG2
Annual Income Upto 3 lacs Upto 6 lacs Upto 12 lacs Upto 18 lacs
Interest Rate Subsidy per annum 6.5% p.a. 6.5% p.a. 4% p.a. 3% p.a.
Maximum Eligible Home Loan amount to get Subsidy Rs. 6 lacs Rs. 6 lacs Rs. 9 lakh Rs. 12 lakh
Maximum Interest Subsidy amount Rs. 2.67 lakh Rs. 2.67 lakh Rs. 2.35 lakh Rs. 2.30 lakh
Women Ownership Yes Yes NA* NA*

*For MIG1 and MIG2, Ownership for Women is not available at present.

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