The Pradhan Mantri Awas Yojana was introduced by the India Government in the year 2015 as a part of  ’Housing for all by 2022’ strategy. This scheme is intended to offer an affordable housing facility to both rural and urban dwellers.

The credit-linked subsidy scheme aims at constructing more than 2 crore houses for Indian residents with lower income and economic instability. The government provides a subsidy on housing loans for construction,repair or purchasing.

Moreover, the scheme reduces the interest subsidiary paid on home loan by upto 6.5%.Such credits come with a maximum loan tenure of 20 years. A person with income below Rs.18 lakh per annum is eligible to apply for PM Awas Yojana.

This scheme has been divided into two variants, namely PradhanMantriAwasYojana-Gramin and Urban. To understand the schemes, one must check the features first.

Pradhan Mantri Awas Yojana – Gramin

A report,nearly 1.10 crore houses had been completed underPMAY- Gramin.The gramin division of the program helps those individuals incapable of building or buying a pucca house. This home loan subsidy is a good option for acquiring accommodation for kutcha house owners or homeless.

But only select individuals,such asKisan credit card holder with a limit of at least Rs.50,000,are eligible to apply for the loan.Here the categories are divided into Economically Weaker Section (EWS) and Lower Income Group (LIG), which decides the availability and amount of subsidy on interest based on income criteria.

Therefore, it is recommended to check eligibility criteria and features of Pradhan Mantri Awas Yojana for a home loan beforehand.

Some features of Pradhan Mantri Awas Yojana-Gramin are:

  • Spacious houses– All houses under this scheme will have a 25sq metre area.
  • Maximum loan amount– A person can avail uptoRs.70,000 under PMAY- Gramin scheme.While eligible applicants can lower their home loan interest burdens by more than Rs.2.60 lakh
  • Toilets– The PMAY-G scheme works parallel withySwachh Bharat Mission Gramin which aims to make villages cleaner. An individual can claim upto Rs. 12000 for construction of toilets in his/her property.
  • The interest subsidy amount for both EWS and LIG is upto 6.5%.

PradhanMantriAwasYojana- Urban

This urban housing scheme launched on 25th June 2015 intends to offer housing facilities for the poor masses. This scheme provides monetary help for constructing houses in 4300 cities and town across India. PMAY-U is in charge of planning across urban centres, industrial development, specific area development departments, notified planning,etc.

For individuals looking to buy houses in the city, it is essential to know that CLSS has been divided into MIG I and MIG II. Here the MIG I comprises a household having an annual income up to Rs.12 lakh and for  MIG II up to Rs.18 lakh per annum.

Moreover, knowledge of the benefits of Pradhan Mantri Awas Yojana PMAY for urban will benefit a borrower in making the best out of a loan.

Some of the features of Pradhan Mantri Awas Yojana for the urban area are-

  • This mission offers central assistance to agencies through Union and state Territories for providing housing facilities upto 1.2 crores.
  • The size of houses offered to the economically weaker section will be upto 30sq mt carpet area.
  • Maximum loan tenure is up to 20 years for both MIG I and II.
  • The eligible loan amount for interest subsidiary of MIG I is upto Rs.9 Lakh and Rs. 12 Lakh for MIG II
  • CLSS provided for MIG having annual household income between Rs.6 Lakh to Rs. 18 Lakh, seeking housing loan from housing finance companies and financial institutions.

Categories of PMAY Schemes

The Pradhan Mantri Awas Yojana scheme is a smart option for low to middle-income families looking for an affordable house. PMAY list specifies that widows, independent women,differently able and women belonging from scheduled caste and tribe are given preference.

The four types of PMAY schemes are-

  1. In-situ redevelopment
  2. Housing in partnership
  3. CLSS
  4. Construction of beneficiary led house

Many NBFCs also provide pre-approved offers that give a hassle-free process of loan approval. These offers are available on a range of financial products, including loan against property, home loans and more. You can check your pre-approved offer by providing your name and phone number.