PMAY Scheme: Benefits and Application Procedure

The Pradhan Mantri Awas Yojana (PMAY) is an initiative by the Government of India to provide housing for all. The availability of this scheme and the GST rate cut on affordable houses from 8 to 1 percent have been key contributors to the real estate sector’s growth. As per the JLL report – 

  • More than 80% of new launches of home units were under-Rs.1 crore category. 

Individuals looking for the best options to fund purchasing a house in the mid or affordable segment should know about the PMAY benefits. 

Benefits of PMAY scheme 

As per a government report, almost 18 lakh houses were built under PMAY between March and September 2020. Per that same report, it took roughly 45 – 60 days for each unit to be completed. 

Besides fast completion of building houses, several other PMAY benefits are there that beneficiaries of this scheme can leverage. Some of them are listed below. 

Covers both urban and rural areas PMAY scheme covers all statutory towns, areas, and cities of India. Hence, both urban and rural India can reap this Yojana’s benefits. However, the PMAY eligibility parameters for PMAY-U and PMAY-G are different. 

Attractive subsidies for different income groups 

Based on land availability, income and financial condition of citizens, this scheme is divided into various groups. And each group enjoys exclusive PMAY benefits. The categories under this scheme include,

  1. EWS (annual income up to Rs. 3 lakh) and LIG (up to Rs. 6 lakh): Both these groups are eligible for a PMAY subsidy of up to 6.5% on the interest rate. The maximum loan amount they can avail of is Rs.6 lakh. 

  2. MIG I (annual income from Rs. 6 lakh to Rs. 12 lakh): Individuals from this group can get an interest rate subsidy of up to 4% on loans not exceeding Rs. 9 lakh.
  3. MIG II (annual income from Rs. 12 lakh to Rs. 18 lakh): Beneficiaries of this income group can get a 3% subsidised interest rate on principal not more than Rs. 12 lakh. 

Remember that individuals of each category need to fulfil certain Pradhan Mantri Awas Yojana eligibility criteria. 

Additional benefits for women, the elderly, and differently-abled 

The government has mandated women to own or co-own the house to avail the PMAY benefits, which will likely empower women. Moreover, under this scheme, elderly and differently-abled beneficiaries are mandatorily allotted the ground floor for better accessibility. 

Almost all leading Housing Financing Companies extend a home loan under PMAY to first-time homebuyers. In case one does not qualify for this scheme, they can apply for a home loan from such HFCs directly. 

Note that one might qualify for pre-approved offers on a home loan that specific financiers provide. These are extended on financing options like a home loan and loan against property to expedite the application process. Individuals can submit their names and phone numbers to check their pre-approved offer. 

If you do qualify for PMAY, check the application process for this scheme. 

The application process of PMAY

Individuals can both apply online and offline to avail the PMAY benefits. 

Online process 

  1. Visit the official portal of PMAY and go to the ‘Citizen Assessment’ section in the menu. 
  2. Choose any of the four schemes applicable to you. 
  3. Enter your Aadhaar number on the next page, which redirects you to the main application page. 
  4. Enter necessary details like name, income, residential address, etc. 
  5. Accept the terms and conditions and complete the captcha verification. 
  6. Click on “Save”, and the application will be submitted automatically. 

After applying successfully, individuals can also check their PMAY status online through the official portal by entering some basic credentials. 

Offline process

  1. Visit the Common Service Centre (CSS) of your state or UT. 
  2. Fill up the application form with the necessary documents.
  3. Pay an application fee of Rs. 25 + GST. 
  4. Submit the form with the necessary documents.

Once the application is approved, beneficiaries can view their name on the PMAY list published state-wise. While applying for this scheme, individuals need to rely on trusted HFCs as they offer better services on their home loan under this scheme. Besides the aforementioned ones, beneficiaries can also avail of PMAY benefits for the construction and extension of a kitchen and clean toilet.  

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