PMAY: All You Should Know About The Scheme in 2021

Under the flagship scheme Pradhan Mantri Awas Yojana or PMAY, the Government of India focuses on facilitating affordable housing options for economically weaker sections in the society. The aim is to build more than 20 million houses in the country so that more individuals get access to proper and affordable shelter. This will be made possible in three phases –

• Phase 1 – Covering 100 cities in selected states and Union Territories (from April 2015 to March 2017)
• Phase 2 – Covering 200 additional cities in the country (from April 2017 to March 2019)
• Phase 3 – Covering all the remaining cities (from April 2019 to March 2022)

Beneficiaries will be added to the PMAY List primarily based on their scale of annual income and other eligibility requirements. The categories that qualify under this scheme are EWS (Economically Weaker Section), LIG (Lower Income Group), and MIG (Middle Income Group).

Understand the two components of the PMAY scheme

The Pradhan Mantri Awas Yojana is applicable to both urban and rural regions in India. It has been categorised into two sections for better implementation. They are – PMAY Gramin and PMAY Urban. Although both these sections work for the same goal, there are some key differences between them. 

Here are some features of PMAY Gramin –

• This housing scheme in India provides housing facilities in all rural regions except that of Delhi and Chandigarh.
• Applicants and beneficiaries will be assisted to construct pucca houses.
• About 4 crore houses are to be built for the rural poor by 2022.
• The gross budget of this scheme is more than Rs.81,000 Crore.

Now, the following are a few noted features of PMAY Urban –

• About 4041 towns and cities are included in this scheme.
• The gross budget from this scheme is more than Rs.4.5 lakh crore.
• Beneficiaries under this PMAY List must not have owned a pucca house anywhere in India.

PMAY Urban is a CLSS (Credit Linked Subsidy Scheme) housing schemes. This means the beneficiaries can claim subsidy on the interest paid on their home loans. The interest subsidy rate is 4% for the MIG I category, 3% for MIG II, and 6.50% for EWS as well as LIG categories. Beneficiaries can find out accurate estimates of this using a PMAY eligibility calculator.

Pradhan Mantri Awas Yojana eligibility calculator

The PM Awas Yojana scheme renders housing affordable for everyone by providing interest subsidy on housing loans. Beneficiaries often get confused regarding the exact subsidy figures. A PMAY subsidy or eligibility calculator thus helps to compute the amount of subsidy one is eligible to avail.

It is an online tool through which beneficiaries can thoroughly understand their monthly repayment liability, savings on interest, etc., on a home loan. Here’s how to use a PMAY eligibility calculator –

1. Open the portal of a financial institution.
2. Search for the Pradhan Mantri Awas Yojana subsidy calculator or eligibility calculator.
3. Once the calculator appears on your screen, start filling up the inputs.
4. Start with annual family income.
5. Next, specify the loan amount you wish to borrow as a home loan.
6. Select the repayment tenor for your home loan.
7. Select the carpet area of your new house.
8. Choose between ‘Yes’ or ‘No’ as an answer to ‘Is this your first pucca house?’

Based on your income, the calculator automatically detects your PMAY list beneficiary category. The subsidy category is displayed, below which the amount is given. Based on these estimates, you can plan your PMAY home loan in a better manner.

If you fail to satisfy the eligibility requirements of this scheme, you can alternatively opt for a home loan from any reputed HFC in India.

These loans are available against convenient terms, and one can also access pre-approved offers to simplify their application process. These offers are available on a range of financial products, including home loan, loan against property, etc. You can check your pre-approved offer by providing your name and contact number.

Nonetheless, individuals who have already applied under this housing scheme can check the PMAY status frequently to stay updated. It can be checked online using the assessment ID or personal information.