Benefits of Pradhan Mantri Awas Yojana (PMAY)- Details You Must Know
Introduction To Pradhan Mantri Awas Yojana
Housing is a fundamental need of all. As land and property prices continuously surge in India, owning a house remains a dream for most. Keeping this thing in mind, the central government of India has taken an initiative that helps people a lot. Anyone can be a homeowner on more accessible terms, and it will be affordable for all. The central government has launched Pradhan Mantri Awas Yojana, also known as PMYA. This initiative was founded on 1st June 2015. The main motto of this initiative was to promote and encourage all sustainable and affordable housing for the urban poor. This scheme is a Credit Linked Subsidy Scheme(CLSS) which refers to all PMYA scheme beneficiaries who will be eligible for interest subsidy when they demand a loan to purchase or construct a new house.
The Pradhan Mantri Awas Yojana aims to offer housing for nearly 20 million individuals by 2020 by providing interest subsidies for purchasing new homes and constructing new homes on newly purchased land. To make this scheme more convenient, the central government has reduced the GST rates on home loans from 12 percent to 8 percent for those applying for the Pradhan Mantri Awas Yojana scheme.
In this article, you will know the detailed benefits of Pradhan Mantri Awas Yojana, or PMAY. Along with that, all required details will be provided for your convenience.
Let’s get started!
What Is The Main Goal Of Pradhan Mantri Awas Yojana?
Day by day, the price of land and house is rising throughout India, and no need to say more than the factor significantly reduces the affordability among many people who dream of their own homes. It is especially true for metropolitan cities. To make this thing affordable for all, this scheme was launched by the central government of India.
This scheme is also known as “Housing for all by 2022”. This credit-linked subsidy scheme has planned to build more than two crore houses for Indian residents, but it was for a particular economic section. Whoever is willing to apply for home loans to buy a new house or land to construct a new house shortly will be eligible for interest subsidies on the said credit. Though there is a particular condition- this loan interest subsidy will be available only for individuals who belong to the economically weaker section (EWS), lower income group (LIG), or middle-income group (MIG).
| Economic Section | Eligibility subsidy (%) |
| Economical Weaker Section (EWS) | 6.5 |
| Lower Income Group (LIG) | 6.5 |
| Middle Income Group (MIG) I | 4 |
| Middle Income Group (MIG) II | 3 |
Income Range For Various Economic Groups
The income range is the fundamental factor determining whether the individual will be eligible to enjoy a loan subsidy. To sort out this thing, that particular family’s annual income works as the eligibility determinant. It would help if you understood that family income would be calculated based on the revenues of all family members from various sources like jobs, investments, and other works.
Here we are displaying a chart that will make you understand what family incomes determine which income group.
| Economic Sections | Annual Family Income |
| Economical Weaker Section (EWS) | Up to Rs. 3 lakhs |
| Lower Income Group (LIG) | Between Rs. 3 lakhs and Rs. 6 lakhs |
| Middle Income Group (MIG) I | Between Rs. 6 lakhs and Rs. 12 lakhs |
| Middle Income Group (MIG) II | Between Rs. 12 lakhs and Rs. 18 lakhs |
If the family revenue is more than Rs. 18 lakhs per annum, the family will be not eligible for subsidies under the Pradhan Mantri Awas Yojana. We should also clarify one thing: this new-age housing scheme by the government is divided into two basic types: PMAY Urban(PMAY-U) and PMAY Gramin(PMAY-G).
PMAY urban- Pradhan Mantri Awas Yojana Urban
The urban division of the Pradhan Mantri Awas Yojana scheme is in effect in around 4300 cities and towns throughout the country. This scheme also accounts for a few development authorities in charge of planning urban centers. These development authorities can be the industrial development body, special area development departments, notified planning authorities, and other such institutions.
As per the current survey, the progress list of PMAY-U is as mentioned below.
- Completed houses: 35.8 lakh
- Approved homes: 105.6 lakh
- Occupied residence: 66.23 lakh
The rate of completed projects in the case of PMAY-U increased to 31 percent by June 2019. However, the occupancy rate was at a fixed rate of 92 percent.
Offers and benefits of PMAY-U
Here is the chart that will indicate various features and benefits of the PMAY-U scheme.
| Features | MIG I | MIG II |
| Interest rates subsidy | 4 % | 3% |
| Maximum carpet area of a dwelling unit | 160 sq. m. | 200 sq. m. |
| Maximum subsidy amount | Rs. 2.35 lakh | Rs. 2.30 lakh |
| Maximum home loan Quantum for subsidy | Rs. 9 lakh | Rs. 12 lakh |
| Maximum home loan tenure | 20 years | 20 years |
| The discount rate for interest subsidy NPV | 9% | 9% |
PMAY Gramin- Pradhan Mantri Awas Yojana Gramin
The Pradhan Mantri Awas Yojana Gramin covers areas like a village, slums, and other rural areas. This scheme is entirely for the economically weaker section and lower income groups.
Offers and benefits of PMAY-G
The table below will show you the offers and benefits provided under PMAY-G.
| Features | Economically weaker section | Lower income group |
| Interest rates subsidy | 6.50% | 6.50% |
| Maximum carpet area of a dwelling unit | 30 sq. m | 60 sq. m. |
| Maximum subsidy amount | Rs. 2.67 lakh | Rs. 2.67 lakh |
| Maximum home loan Quantum for subsidy | Rs. 6 lakh | Rs. 6 lakh |
| Maximum home loan tenure | 20 years | 20 years |
| The discount rate for interest subsidy NPV | 9% | 9% |
How can a person apply for the Pradhan Mantri Awas Yojana scheme?
If you want to apply to the Pradhan Mantri Awas Yojana scheme under the central government of India, you have to follow the steps mentioned below. These steps will help any individual.
- Step 1
Firstly, go to the official website of Pradhan Mantri Awas Yojana: http://pmaymis.gov.in/
- Step 2
Go to the “Citizen Assessment” option. You can find this under the Menu tab.
- Step 3
Now, enter your Aadhar number.
- Step 4
When you submit your aadhar number successfully, you will be redirected to the application page.
- Step 5
Now you need to proceed to enter all relevant data on that page. It will include your details, bank account details, income details, etc.
- Step 6
Before submission, ensure you have rechecked all the detailed information you have put down.
- Step 7
After rechecking, click on the save option and find your unique application number.
- Step 8
Now, you have to download your application form.
- Step 9
You need to deposit the form at the nearest CSC office or a financial institution that offers the Pradhan Mantri Awas Yojana scheme service. Along with the form, you need to submit all required documents to the office.
Documents required for the Pradhan Mantri Awas Yojana scheme
For those who are salaried people:
- Application for downloaded from official website
- Proof of identity like a Pan card. Additionally, you may be required to submit an Aadhar card, voter ID card, driving license, passport, photo credit card, etc.
- Proof of address like a government ID card that includes the detailed address
- Proof of income like bank statement for six months, salary slip for last two months, and ITR
- Property documents like allotment letters or buyer agreement
For those who are self-employed applicants:
Self-employed applicants must also submit all those details, like salaried employees. Still, the difference is address proof of business like trade license, shops and establishment certificate, sales tax, pan card, VAT registration certificate, SEBI registration certificate, memorandum of association, etc. Another essential document is income proof like ITR for the preceding two years, profit and loss balance sheet info, account statement for the last six months, and personal bank account.
Pradhan Mantri Awas Yojana (PMAY) eligibility criteria
When you want to apply to the Pradhan Mantri Awas Yojana under the government of India, you need to check whether you are eligible or not to apply to this scheme.
Here is the list of factors that determines whether you are eligible or not:
- The first and foremost thing is the economic group you are falling under. As per your annual income range, you can fix your financial group. You will not be qualified for this scheme if your family income is more than 18 lakh per annum.
- There should be a woman’s name on the deed of property papers. Only when no female members in a family can this rule be eliminated.
- Pradhan Mantri Awas Yojana is only available for the new property buying option. Apart from this, the applicant should not own any previous properties when applying for this scheme.
- The beneficiaries should not have any previous scheme or assistance from the state or central government or housing scheme initiative.
- The house or property the owner wants to purchase should belong to one of the areas, towns, villages, etc., per the census 2011.
- All beneficiaries should not avail any benefit under Pradhan Mantri Awas Yojana before.
Tax benefits under Pradhan Mantri Awas Yojana
Individuals can proclaim tax benefits underneath the following sections of the income tax act 1961. This should work while availing the subsidy under the schemes per the tax regime for 2019-2020.
- Section 80C: deductions of up to Rs. 1.50 lakh per year on the home loan principal repayment
- Section 24(b): deduction of up to Rs. 2 lakh per year on home loan interest payment
- Section 80EE: first-time homebuyers can avail of yearly tax relief of up to Rs. 50000
- Section 80EEA: deduction of up to Rs. 1.50 lakh per year on home loan interest payment in case the property comes under the affordable housing category
Benefits of Pradhan Mantri Awas Yojana
- Housing for all strata of society
Under the Pradhan Mantri Awas Yojana scheme, the government aims to build two crore affordable houses in many urban areas for eligible people. This scheme will uplift the standard of living for many people. This construction has already started in states like West Bengal, Maharashtra, and Tamil Nadu.
- Provisions for women and minority applicants
Pradhan Mantri Awas Yojana makes a women’s homeownership a mandatory clause. It also mentions that the house should be registered in a woman’s name even if she is not buying the property. There will also be preference provisions for salaried women, widows, transgender, minorities, disabled, etc.
- Tax benefits
Different Acts can help you to get relief from tax. We have mentioned this section previously. Homebuyers with loans approved before the 31st March 2020 fall beneath Pradhan Mantri Awas Yojana’s eligibility for specific tax advantages on interest repayments.
- Inclusive of all stratum
The benefits of PMAY schemes spread to an extensive demographic – transgender, SCs, STs, and other minorities all can enjoy PMAY eligibility and become owners of their own homes. Special ground-floor accommodations will also be delivered to senior citizens and disabled people.
- Eco-friendly homes
Under the scheme of Pradhan Mantri Awas Yojana, developers are building construction using eco-friendly construction technology and materials. In this way, minimal environmental damage is ensured. Also, the pollution level around the structure will be under control.
Pradhan Mantri Awas Yojana customer care helpline numbers
You can contact the toll-free helpline numbers if you are facing any issues while filling up the form, other problems related to interest rates, or scheme details.
Here we are providing the toll-free numbers you can contact.
- 1800-11-6163 (Urban, HUDCO)
- 1800-11-3388 (Urban, NHB)
- 1800-11-3377 (Urban, NHB)
- 1800-11-6446 (Gramin)
Which banks are offering home loans under the Pradhan Mantri Awas Yojana scheme?
Here is the list of top banks offering home loans under the Pradhan Mantri Awas Yojana scheme.
- Bank of Baroda
- State Bank of India
- Axis Bank
- IDFC first bank
- Bandhan Bank
- Bank of India
- HDFC bank
- IDBI Bank
- Punjab National Bank
- Canara Bank
You can apply for home loans in these banks to get all facilities of PMAY.
Which are the state-wise nodal agencies for PMAY?
- Andaman and Nicobar Islands- Union Territory of Andaman and Nicobar Islands
- Andhra Pradesh- Andhra Pradesh State Housing Corporation Limited, Andhra Pradesh Township Infrastructure Development Corporation Limited
- Arunachal Pradesh- Government of Arunachal Pradesh
- Assam- Government of Assam
- Bihar- Government of Bihar
- Chandigarh- Chandigarh Housing Board
- Chhattisgarh- Government of Chhattisgarh
- Dadra and Nagar Haveli, and Daman and Diu- Union Territory of Dadra and Nagar Haveli, and Daman and Diu, Union Territory of Dadra and Nagar Haveli
- Goa- Government of Goa
- Gujarat- Government of Gujarat
- Haryana- State Urban Development Agency
- Himachal Pradesh- Directorate of Urban Development
- Jammu and Kashmir- Jammu and Kashmir Housing Board
- Jharkhand- Urban Development Department
- Kerala- State Poverty Eradication Mission
- Madhya Pradesh- Urban Administration and Development, GoMP, Government of Maharashtra
- Manipur- Government of Manipur
- Meghalaya- Government of Meghalaya
- Mizoram- Urban Development & Poverty Alleviation, Government of Mizoram
- Nagaland- Government of Nagaland
- Odisha- Housing and Urban Development (H&UD) Department
- Puducherry- Government of Puducherry
- Punjab- Punjab Urban Development Authority
- Rajasthan- Rajasthan Urban Drinking Water, Sewerage & Infrastructure Corporation Ltd (RUDSICO)
- Sikkim- Government of Sikkim
- Tamil Nadu- Government of Tamil Nadu
- Telangana- Government of Telangana
- Tripura- Government of Tripura
- Uttarakhand- Directorate of Urban Development
- Karnataka- Government of Karnataka
- West Bengal- State Urban Development Authority
- Uttar Pradesh- State Urban Development Agency (SUDA)
