Who wouldn’t want a home of his/her own? But what with the spiralling property price and a fixed income, the wish doesn’t materialize for most people. But there’s hope yet even for those in low-income brackets. The Indian government has introduced the Pradhan Mantri Awas Yojana (PMAY) to help the urban poor get affordable housing.

Launched in 2015, PMAY is a credit-linked subsidy scheme. It caters to the economical weaker section (EWS), the lower income group (LIG), and the middle income group (MIG).  Affordable eco-friendly houses are being constructed under this scheme in selected cities for people currently living in slum areas.

With PM Awas Yojana, people under the EWS, LIG, or MIG categories can either buy or construct a new property. They also have the option to perform maintenance activities in their existing houses.

Features of PMAY

• Subsidy of up to 6.5% on the home loan interest rate for all beneficiaries

• Sustainable and eco-friendly technologies used for construction of these houses

• Entire urban areas are covered under this scheme

• Implementation of PMAY to be done in three phases

Eligibility criteria for Pradhan Mantri Awas Yojana

The Socio Economic and Caste Census of 2011 (SECC 2011) is consulted to identify the beneficiaries of PMAY. This helps maintain transparency and ensure aid for people in need. Other PMAY eligibility criteria for availing housing assistance are:

• Households with a total annual income within Rs.18 lakh can apply for PMAY

• Women applicants need not meet any other demographic criteria for application to this scheme

• The beneficiary or any of their family members should not have any pucca house in any part of the country

• Beneficiaries will be allowed to buy or construct new houses only. One cannot claim PMAY for already constructed or purchased houses

• People belonging to the LIG and EWS groups can apply for houses under PMAY

• People belonging to the scheduled tribe and schedule caste categories can apply for housing help under PMAY

• Senior citizens and physically challenged persons will be given priority for ground floor allotment of houses.

• Non Resident Indians (NRIs) can apply for PMAY benefits, provided they meet the required criteria

How to apply for PMAY housing

You can submit your application to the urban local body or apply online from the PMAY website. You need to furnish Aadhaar verification along with your application. Your savings account details and household income details should also be given.

You can check your eligibility for PMAY by submitting your BPL (below poverty line) certificate to the bank of your choice. You may also visit the PMAY website to check your name in the list of beneficiaries.

How to avail the credit-linked subsidy scheme under PMAY?

Many leading banks and non-banking financial corporations offer home loans under PMAY. Now, here is an overview of what happens when you apply for the subsidy scheme:

• When you apply for a home loan from any listed lending agency, ask for the subsidy

• The lending agency will review your application. If you are eligible, it’ll send your application to the central nodal agency

• If no discrepancies are found after verification, your application will be approved

• The central nodal agency will disburse the subsidy amount to the lending agency

• The bank/financial institution will credit this amount to your loan account. This will effectively lower your total loan amount

Economic benefits

The urban poor population in India is increasing at an alarming rate. It is estimated that the urban dwelling population will rise to 814 million by 2015. Safe housing and sanitation options are two important challenges in this respect. PMAY works towards filling up that gap between the ever-increasing population and available housing for them.

The number of beneficiaries under the PMAY have steadily increased over time. It already covers 4,320 towns of India. The estimated housing demand in these places is one crore. Among these, the construction of 76 lakh houses have already been completed.

The PMAY scheme has enabled the government to encourage the urban poor to leave their unhygienic dwellings. It has made the dream of having one’s own home come true. In this way, it is paving the path to development and boosting the economy from inside.