A staggering number of Indian citizens live below the poverty line. Not just that. Even many of those who are above the poverty line are unable to afford proper housing. Moreover, housing, especially in India’s metropolitan cities, is too expensive for many Indians to afford.In light of the above, the Government of India introduced the Pradhan Mantri Awas Yojana (PMAY) scheme on 7 June 2022. This progressive mission aims to make housing available to all. The goal is to bring about affordable housing for the poorer and economically weaker sections (EWS) of society. The scheme is a collaboration between the public and private sectors. The aim is to build 20 million houses by 31 March 2022. To get benefited with this scheme, one needs to fulfil the PMAY eligibility criteria which are categorised into three main categories. Additionally, the scheme has an urban and rural component. They are aptly titled PMAY-U or Pradhan Mantri Awas Yojana – Urban and the PMAY-G or Pradhan Mantri Awas Yojana – Gramin.
Components of the PMAY Scheme
- In-situ Redevelopment: The plan is to redevelop slum lands with help from the private sector. Thus,, slum dwellers will get a chance to live in clean, sanitary, and dignified housing.
- Credit-linked Subsidy: Here the PMAY scheme will provide a home loan interest rate subsidy of 6.5%. This will be for a period of 15 years from the loan commencement date. But, only home loan amounts of Rs.6 lakh and below are eligible for the subsidy. Banks and financial institutions have to credit the interest rate subsidy to the beneficiaries’ accounts. This will in turn reduce the home loan amount and thereby their equated monthly instalments (EMIs).
- Affordable Housing in Partnership (AHP): The partnership here is between the public and private sectors. The PMAY scheme has brought these two together to build affordable housing for the less affluent sections of society.
- Enhancement and Construction of Beneficiary led House: Everyone may not fall under the PMAY scheme. EWS individuals who are not eligible for the above components may still get financial support. The financial help is up to Rs.1.5 lakh to build a new house or to renovate an existing house.
Basic Eligibility for the PMAY Scheme
To be eligible for the PMAY scheme, you must fall under one of the following groups:
- EWS: This means that the total household income must be less than Rs.3 lakh a year.
- Low Income Group (LIG): This means that the total household income should be between Rs.3 lakh and Rs.6 lakh.
- Medium Income Group (MIG 1): Under this category, the total household income is less than Rs.12 lakh per year (Rs.9 lakh to Rs.12 lakh). This group may avail a PMAY home loan of Rs.9 lakh for constructing a house.
- Medium Income Group (MIG 2): In this category, the total household income is Rs.12 lakh to Rs.18 lakh per year. This group may avail a PMAY home loan of up to Rs.12 lakh.
- Minorities: People from minority groups such as SC/ST/OBC are also given consideration for the PMAY scheme.
- Women: Women from the EWS and LIG categories are given consideration for this scheme.
More about PMAY Eligibility Criteria
- You must have a valid Aadhaar card to avail the PMAY scheme.
- You should not have ownership of a pucca house anywhere in the country either in your name or a family member’s name.
- You should never have availed of help from either the central or state government.
- The property should be co-owned by an adult female family member.
- The property location has to fall under a statutory town (and the nearby planning area) as per the 2022 census.
The PMAY scheme gives you a chance to afford a house of your own. You can also approach a lender for a house loan. Also, utilize a home loan EMI calculator to understand the EMI you can afford.