Pradhan Mantri Awas Yojana (PMAY) : Step-by-Step Guide to Get Affordable Housing

Pradhan Mantri Awas Yojana is a major social welfare program of the Government of India. It was launched in 2015 to provide permanent houses to all eligible beneficiaries in urban and rural areas of the country.

Budget 2024-25: Three crore more houses will be provided under PM Awas Yojana in rural and urban areas. Under PM Awas Yojana Urban 2.0, an investment of Rs 10 lakh crore will meet the housing needs of 1 crore urban middle class and poor families. This will include central assistance of Rs 2.2 lakh crore over the next 5 years.

Budget 2023-24: In Budget 2023, the outlay for the Pradhan Mantri Awas Yojana was increased by 66% to over Rs 79,000 crore.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) was launched with the objective of providing housing at affordable prices to the weaker sections of the society, low income group people, urban poor and rural poor.The scheme involves construction of about 20 million houses at affordable prices. In Budget 2023, the outlay for the Pradhan Mantri Awas Yojana was increased by 66% to over Rs 79,000 crore. Pradhan Mantri Awas Yojana has two components:

Pradhan Mantri Awas Yojana Urban (PMAY-U)

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

This scheme is also linked to other schemes like:

1.The objective of Pradhan Mantri Jan Dhan Yojana is to open zero balance accounts and provide banking facilities to every person of the society.

2. Swachh Bharat Abhiyan aims to reduce open defecation by constructing indoor and community toilets and maintaining cleanliness in streets, roads and around houses.

3. Saubhagya scheme which aims to provide electricity connection.

4. Ujjwala scheme which aims to provide LPG gas connections.

5. Department of Drinking Water & Sanitation, Jal Jeevan Mission, is envisioned to provide safe and adequate drinking water through individual household tap connections by 2024 to all households in rural India

Pradhan Mantri Awas Yojana Urban (PMAY-U)

PMAY-U aims to provide affordable houses to all eligible households/beneficiaries who do not have permanent houses in cities and towns. Under PMAY-U, all households will have basic amenities like water supply, kitchen, electricity and toilet.

This scheme promotes women empowerment by providing house/land ownership in the name of the female member or in joint name. Under this scheme, senior citizens, disabled persons, scheduled castes, Priority is given to Scheduled Tribes, Other Backward Classes (OBC), single women, transgenders, minorities, other vulnerable and vulnerable sections of the society.

In August 2022, the Union Cabinet approved the continuation of PMAY-U till 31 December 2024. Till July 15, 2024, 118.64 lakh houses have been approved under this scheme and 84.7 lakh houses have been completed.

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

PMAY-G aims to provide pucca houses to all the families living in kutcha houses or all the homeless people in rural areas. The scheme works in conjunction with other government schemes to provide basic amenities to households, such as electricity, drinking water, clean and efficient cooking fuel, toilets, treatment of solid and liquid waste, etc.

Under the scheme, the cost of unit assistance in plain areas will be shared between the Central and State Governments in the ratio of 60:40 and for North-Eastern States, Himachal Pradesh, Uttarakhand and Jammu and Kashmir in the ratio of 90:10. As of July 15, 2024, 2 crore 94 lakh houses have been sanctioned under the scheme and 2 crore 63 lakh houses have been completed.

Benefits of PM Awas Yojana

House: Beneficiaries under PMAY-G will get their own house of minimum 25 square meters. Under PMAY-U, beneficiaries will get their own house ranging from 30 sq. meter to 200 sq. meter depending on their category (EWS, LIG, MIG).

Assistance: Under PMAY-G, beneficiaries will get assistance of Rs 12,000 for toilet construction from Swachh Bharat Mission (G). They will also receive unit assistance of Rs 1.20 lakh in plain areas and Rs 1.30 lakh in hilly states, Jammu and Kashmir, Ladakh, North-Eastern states, difficult areas and IAP/most affected Left Wing Extremism (LWE) districts.Under PMAY-U, beneficiaries will get central assistance of Rs 1.5 lakh per EWS household.

Land Ownership: The government will provide government land or any other land (public land) to landless persons to build houses under PMAY.

Women Empowerment: House/land will be allotted in the name of a female member of the family or jointly in the name of husband and wife, which will empower the women of the country.

Interest Subsidy: PMAY beneficiaries will get interest subsidy on housing loans for purchasing or new construction of houses from Primary Lending Institutions (PLIs).

Better socio-economic condition: The houses provided to homeless families will also improve their socio-economic condition and quality of life. A home with all amenities will lead to better education, health and overall well-being.

Slum Reduction: PMAY-U will help in reducing slums in towns and cities by providing permanent houses to slum dwellers. This will help in bringing slum dwellers into formal urban settlements.

Direct Transfer: Financial assistance under this scheme is transferred directly to the beneficiaries electronically in their bank or post office accounts which are linked to Aadhaar. Thus, it reduces the chances of fraud and ensures that beneficiaries receive the money.

Components of Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana – Urban has 4 major components:

In-situ redevelopment of slums using land as a resource with private sector participation. The mission aims to harness the potential of land under slum areas and provide formal urban establishments to slum dwellers.

Credit Linked Subsidy – Under this scheme the government will provide an interest subsidy of 6.5% on home loans for 15 years from the inception of the loan, thereby making housing affordable. The net present value (NPV) of the interest subsidy will be calculated at a discount rate of 9%.The loan amount of Rs 6 lakh is only applicable for the credit-linked subsidy scheme and any amount above Rs 6 lakh does not attract any subsidy. The lending institutions will credit the interest subsidy directly into the accounts of the beneficiaries, resulting in lower equated monthly installment (EMI) and reduction in the home loan amount.

Affordable Housing in Partnership (AHP) – Affordable housing will be provided to economically weaker sections, in partnership between public and private sector. States or Union Territories may plan affordable housing projects, either with separate agencies or in partnership with different industries.

Beneficiary led household promotion and construction

Under this component, benefits will be provided to those beneficiaries who are not able to avail the above three components. This mission provides assistance to EWS category families to construct new houses or extend their own existing houses to cover the beneficiaries.Under this mission, families will get central assistance of Rs 1.50 lakh to expand their existing houses or construct new houses. Under the Pradhan Mantri Awas Yojana, houses will be constructed with environment-friendly technology and priority will be given to the elderly and disabled while allotting the ground floor.

Pradhan Mantri Awas Yojana Eligibility

The following people can apply for PMAY-Urban:

Under three components: Economically weaker sections, including Lower Income Group (LIG), Middle Income Group (MIG) and EWS are considered beneficiaries for the ‘Housing for All Scheme’. EWS whose annual income limit is Rs 3 lakh, LIG ​​whose annual income limit is Rs 3 to 6 lakh, and MIG whose annual income limit is Rs 6 to 18 lakh can apply for this scheme.

Slum dwellers : These include people living in poorly constructed housing that is unhygienic and has unhealthy drinking water and sanitation facilities.

The following people can apply for PMAY-Gramin:

All homeless and families living in zero, one or two room kutcha houses with kutcha walls and kutcha roofs as per SECC (Socio Economic and Caste Census) data. However, the following families cannot apply for this scheme:

1. live in permanent house
2. Having a motorized two/three/four wheeler
3. mechanized three/four wheeler agricultural equipment
4. Have a Kisan Credit Card with a credit limit of Rs 50,000 or more
5. Any member of the family is a government employee
6. Are there any non-agricultural enterprises registered with the government?
7. Pays income/professional tax
8. Owning a refrigerator/landline phone/2.5 acres or more irrigated land/5 acres or more irrigated land for two or more crop seasons/7.5 acres or more land with at least one irrigation equipment

Beneficiaries under Pradhan Mantri Awas Yojana

The targeted beneficiaries under PMAY-Urban are:

1. workers, urban poor (rickshaw pullers, street vendors, other service providers, etc.), industrial workers, and migrants belonging to EWS/LIG category
2.  SC/ST/OBC, widows, and minorities belonging to EWS/LIG category

The targeted beneficiaries under PMAY-Gramin are as follows:

1. Scheduled Tribe (ST)/Scheduled Caste (SC)
2. homeless family
3. destitute/living on alms
4. manual scavenger
5. primitive tribal group
6. legally released bonded laborer

How to apply for Pradhan Mantri Awas Yojana?

Steps to apply for PMAY-U

Step 1. Go to the official website of Pradhan Mantri Awas         Yojana.

Step 2. Click on the ‘Sign In’ option and select ‘New User?’ Click on ‘Register Here’.

Step 3. Enter Aadhaar details to proceed (mandatory to enroll in PMAY).

Step 4. After filling the Aadhaar details, you will be redirected to the application form stage, where you have to fill the details correctly.

Step 5. Once this is done, click on ‘Save’ and enter the captcha code.

Step 6. Next, click on ‘Save’. Now the application is complete and a print out can be taken at this stage.

PMAY-G Application Process

Eligible beneficiaries can visit the concerned Gram Panchayat, Gram Sabha or the lowest unit of local self-government recognized by the concerned State/Union Territory Panchayat Act and submit their details to the Gram Panchayat/Gram Sabha authorities for enrollment in PMAY-G.

PMAY-U and PMAY-G provide affordable housing to people from weaker sections of the society. Under this scheme, beneficiaries are provided assistance to build their own houses with basic amenities and ensure a better standard of living.

FAQs: Pradhan Mantri Awas Yojana (PMAY)

1. What is Pradhan Mantri Awas Yojana (PMAY)?
PMAY is a housing scheme launched by the Government of India in 2015 to provide affordable housing to the economically weaker sections, low-income groups, and urban and rural poor. It aims to construct 20 million houses across India by 2024.

2. What are the two components of PMAY?
PMAY has two components:

• Pradhan Mantri Awas Yojana Urban (PMAY-U): Focuses on providing affordable housing to eligible households in urban areas.
• Pradhan Mantri Awas Yojana Gramin (PMAY-G): Aims to provide pucca houses to families living in kutcha houses or homeless people in rural areas.

3. What are the benefits provided under PMAY?
Under PMAY, beneficiaries receive several benefits, including:

• Financial assistance for building houses.
• Interest subsidy on home loans.
• Provision of basic amenities like water, electricity, and toilets.
• Priority allocation to women, senior citizens, differently-abled, and other vulnerable sections.
• Direct transfer of financial assistance to beneficiary accounts.

4. Who is eligible to apply for PMAY?

• For PMAY-U: Individuals from economically weaker sections (EWS), low-income groups (LIG), middle-income groups (MIG), and slum dwellers without a permanent house in urban areas.
• For PMAY-G: All homeless families or those living in kutcha houses in rural areas. Families owning permanent houses, motorized vehicles, or other assets are not eligible.

5. What is the interest subsidy provided under PMAY?
Under the Credit Linked Subsidy Scheme (CLSS), the government provides an interest subsidy of 6.5% on housing loans for eligible beneficiaries, applicable for a tenure of 15 years from the inception of the loan.

6. How can one apply for PMAY-U?
To apply for PMAY-U:

1. Visit the official PMAY website.
2. Click on ‘Sign In’ and select ‘New User?’ and then ‘Register Here’.
3. Enter Aadhaar details to proceed.
4. Fill in the application form and submit it.

7. How can one apply for PMAY-G?
Eligible beneficiaries for PMAY-G can apply by visiting the local Gram Panchayat or Gram Sabha. Submit the required documents and details to the Gram Panchayat authorities for enrollment.

8. What are the types of houses provided under PMAY?
Under PMAY-U, houses range from 30 to 200 square meters depending on the beneficiary category (EWS, LIG, MIG). Under PMAY-G, each house is a minimum of 25 square meters in size and constructed with facilities like a kitchen, toilet, electricity, and clean drinking water.

9. Is the scheme linked to any other government schemes?
Yes, PMAY is linked with other schemes like Swachh Bharat Abhiyan (for toilets), Saubhagya (for electricity), Ujjwala (for LPG connections), and Jal Jeevan Mission (for drinking water).

10. What is the duration of the PMAY scheme?
The Pradhan Mantri Awas Yojana Urban (PMAY-U) has been extended until December 31, 2024. PMAY-G is also ongoing, with the aim to complete all housing targets by 2024.

11. Can women benefit from PMAY?
Yes, PMAY promotes women empowerment by mandating that the house or land is either owned by the female member of the family or jointly owned by the husband and wife.

12. How is the financial assistance provided to beneficiaries under PMAY?
Financial assistance under PMAY is directly transferred to the bank or post office accounts of the beneficiaries, which are linked to their Aadhaar, reducing the chances of fraud and ensuring timely delivery.