What Is the Pradhan Mantri Awas Yojana Scheme (PMAY) and How Can I Apply?

What Is the Pradhan Mantri Awas Yojana Scheme (PMAY) and How Can I Apply?

Details About Pradhan Mantri Awas Yojana

  • The Honorable. Prime Minister Sri Narendra Modi introduced the  Pradhan Mantri Awas Yojana Scheme (PMAY) on June 25, 2015. Between 2015 and 2022, it plans to build roughly 2 crore homes throughout the nation.
  •  It aims to support a respectable and sanitary lifestyle for the country’s underprivileged population.
  • By 2022, “Housing for All”(HFA) was to be a reality. 
  • Credit Linked Subsidy Scheme (CLSS), a program designed to give interest subsidies on loans taken out for the purchase, building, expansion, or improvement of a home, was introduced as part of this aim. 

What is a Credit Linked Subsidy Scheme (CLSS)?

  • The PMAY Program offers the Credit Linked Subsidy Scheme (CLSS), which enables members of the Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG) to get EMIs for house loans reduced thanks to an interest subsidy.
  • The beneficiary will receive an upfront credit for the interest subsidy on the principal amount, which would lower the effective home loan and EMI.
  • The Credit Linked Subsidy Scheme (CLSS) under PMAY makes the mortgage affordable by providing a subsidy on the interest component, which lowers the customer’s outflow on the mortgage. 
  • The size of the property unit being financed and the customer’s income category are the two main factors that affect the subsidy amount under the scheme.

PM Awas Yojana is Split Into Two Sections

  • Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)
  • Pradhan Mantri Awas Yojana Urban (PMAY Urban)

Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)

  • Housing for everyone is a goal of the Pradhan Mantri Awas Yojana Gramin (PMAY Gramin), which was started in 2012.
  • A 25-square-meter pucca house with other essential amenities is what this PMAY program for rural housing construction in India strives to provide.
  • Some State Governments may even offer the applicants financial assistance to purchase land for beneficiaries who are landless under the PMAY Gramin plan.
  • The Indira Awas Yojana, which was introduced in January 1996, has been updated as part of the current program.
  • The minimum size of the homes that must be constructed under the PMAY-G scheme has currently been increased from 20 sq. mt. to 25 sq. mt.

PMAYG Subsidy Scheme

  • Beneficiaries of the program are eligible to borrow up to Rs. 70,000 from financial institutions.
  • Interest is subsidized by 3%.
  • The subsidy’s maximum principle amount is Rs. 2 lakh.
  • The most that can be subsidized for the monthly installment is Rs.38,359

Pradhan Mantri Awas Yojana Urban (PMAY Urban)

  • The PMAY Urban program was established to aid India’s urban poor.
  • The PMAY program offers all beneficiaries a housing loan with an annual interest rate subsidy ranging from 3 t