PMAY Pradhan Mantri Awas Yojana 2024-25: Affordable Housing Scheme for All

In 2015, the government of India launched an affordable housing scheme called Pradhan Mantri Awas Yojana (PMAY). The scheme is specifically for the economically weaker sections of society. To buy a house of their own has been a dream of millions, and with this scheme, dreams of many have been fulfilled. In the year 2015, the government aimed to construct approximately 20 million houses at an affordable price by March 31, 2022. Further, the deadline for the affordable housing scheme for the Gramin area- Pradhan Mantri Awas Yojana Gramin (PMAYG)- is extended to December 2024. Under PMAY 2.0, 2.95 crore more houses will be constructed.    

Quick Facts About PMAY

• PMAY 1.0 targetted economically weaker sections (EWS), lower-income groups (LIG), and middle-income groups (MIG)

• Under PMAY 2.0, the houses are given to slum dwellers, SC/STs, minorities, widows, persons with disabilities, safai karmi, street vendors, artisans, and anganwadi workers.

• The funding is done by central and state governments, also with involvement from private sectors

PMAY Official Website (https://pmaymis.gov.in/)

                          8 Years of PMAY ( Image Source: https://pmay-urban.gov.in/ )

PMAY or Pradhan Mantri Awas Yojana was initiated with the aim of providing affordable dwellings to both rural and urban citiznes of India. Its objective is to provide affordable houses to the economically weaker sections of the society. The key objectives of the PMAY scheme are as follows- 

• To provide affordable houses to slum-dwellers with the help of private developers (Engaged in PPP mode)
• To provide affordable houses for the economically weaker sections through CLSS or Credit Linked Subsidy Scheme under PMAY
• To build affordable houses in collaboration with the private sector
• To provide subsidies for beneficiary-led individual house construction.

The beneficiaries under the PMAY scheme primarily include the following categories-

• MIG I or Middle Income Groups 1: Aannual income between Rs 6 to 12 Lakh
• MIG II Middle Income Group 2: Annual income between Rs 12 to 18 Lakh
• LIG or Low-income Groups: Annual income between Rs 3 to 6 Lakh
• EWS or Economically Weaker Section: Annual income Up to Rs 3 Lakh

Particulars	EWS	LIG	MIG I	MIG II
Total household income	Upto Rs 3 Lakhs	Rs 3 -6 Lakhs	Rs 6 -12 Lakhs	Rs 12 -18 Lakhs
Max loan tenure	20 years	20 years	20 years	20 years
Max dwelling unit carpet area	30 sq. m.	60 sq. m.	160 sq. m.	200 sq. m.
Max loan amount allowed for subsidy	Rs 6 Lakhs	Rs 6 Lakhs	Rs 9 Lakhs	Rs 12 Lakhs
Subsidy	6.50%	6.50%	4%	3%
Discount rate for NPV or Net Present Value calculation of interest subsidy (in %)	9%	9%	9%	9%
Max. interest subsidy amount	Rs 2,67,280	Rs 2,67,280	Rs 2,35,068	Rs 2,30,156

Let us assume that you belong to the MIG-II category (i.e. your annual household income is between Rs 12-18 Lakh). You are planning to buy a flat worth Rs 50 Lakhs. You plan to pay a down payment of 20%, i.e. Rs 10 Lakhs. The remaining amount of Rs 40 Lakhs will be arranged through a loan. However, under PMAY, MIG-2 category applicants are eligible for a subsidy of 3% on loans of upto Rs 12 Lakhs. So, for the remaining Rs 28 Lakhs of the loan, you will have to pay regular (non-subsidized) interest rates to the lender.

Pradhan Mantri Awas Yojana Subsidy Calculation (PMAY Subsidy)

As you can see from the mentioned table , the PMAY subsidy that you are entitled to will be Rs 2.3 Lakh. Therefore, out of the loan amount of Rs 12 Lakhs, your PMAY Subsidy of Rs 2.3 Lakhs will get deducted. Simply put, you will be paying EMI on the balance amount of Rs 9.7 Lakh. 


                                                                            PMAY Subsidy Example

In other words, the PMAY Subsidy is credited upfront to the borrower's account, which reduces the effective home loan amount and EMI amount.

1. Credit Linked Subsidy Scheme (CLSS) - PMAY

The table will explain what’s covered under CLSS scheme.

2. In-situ Slum Redevelopment (ISSR) - PMAY

3. Affordable Housing in Partnership (AHP) - Pradhan Mantri Awas Yojana 2024

The AHP aims to provide assistance of up to Rs. 1.5 Lakh on behalf of the Union Government to families that come under EWS for purchasing & constructing houses. The State/UT can associate with either Private organisations or agencies to develop such projects.

Under this scheme:

• The state/UT shall set an upper limit price for units planned to be provided to buyers under EWS.
• The carpet area is considered for deciding the value of making the constructed houses economically affordable.
• There will be no profit margin on the homes constructed by the State/UTs without the involvement of a private party.
• In the case of private developers, the State / UTs will decide the sale price using a transparent method based on Center / State / ULB incentives.
• The central grant will be applicable only for housing projects that have 35% of the total units built for EWS

4. Beneficiary-led Individual House Construction/Enhancements (BLC) - Pradhan Mantri Awas Yojana 2023-24

This scheme applies to families under EWS who can’t avail of the benefits of the previous three schemes (CLSS, ISSR, and AHP). Such beneficiaries are likely to get financial assistance of Up to Rs. 1.5 Lakh from the Central Govt. for constructing or renovating an existing house.

Under this scheme:

• The Centre will provide unit support in plain areas between Rs 70,000 and Rs 1.20 lakh and hilly and geo-difficult regions between Rs 75,000 and Rs 1.30 lakh
• It’s mandatory to provide personal and other identity documents (relating to landing ownership) to the Under Local Bodies (ULBs)
• Residents from other slums that haven’t been redeveloped can take advantage of this policy if they own a kutcha or semi-pucca home.
• The State shall establish a program for monitoring construction progress by using geo-tagged photographs.

Also Read: IAY:Indira Awas Yojana: Erstwhile Housing Scheme Renamed as PMAY

How to Apply for PMAY 2.0? 

The application process for Pradhan Mantri Awas Yojana 2.0 has started,and this is how you have to apply:-

Step 1: Visit the official website of PMAY-Urban (Pmay gov in)

Home for PMAY 2.0 application

Step 2: Now Click on the “Apply for PMAY-U 2.0” icon.

Click on PMAY 2.0 Application icon

Step 3: The instructions will be displayed on the screen; read all the instructions and details about the scheme carefully

Check your PMAY 2.0 eligibility

Step 4: Check your eligibility by entering the annual income, mission component, and more. 

Step 5: Enter the Adhaar number for the verification

Step 6: Now, fill out the PMAY 2.0 application form with personal details, name, address, income proof and more 

Step 7: Click on Submit to submit the application form. Once the application is accepted, you can avail the financial benefits.

How to Apply for PMAY 2024 Online @ pmaymis.gov.in?

You can apply for PMAY scheme both online and offline.

Follow the steps given for the Pradhan Mantri Awas Yojana Gramin online application-

The steps mentioned below would help individuals avail themselves of subsidies for their home loans under the PMAY scheme. The online process to apply for PMAY is mentioned below-
Step 1: Visit the official website of PMAY (Pmay gov in)
Step 2: Click on the Citizen Assessment option under the Menu tab. 
Step 3: The applicant will enter his/her Aadhar card.
Step 4: Once the Aadhar number is submitted, he/she will be taken to the application page.
Step 5: The PMAY applicant must proceed to enter all required details on this page, including income details, personal details, bank account details and other required information.
Step 6: The PMAY applicants must recheck all information before submission.
Step 7: As soon as a person clicks on the 'Save' option, he/she will find a unique application number.
Step 8: You must download the filled-in application form.
Step 9: Finally, the person can submit the form at his/her nearest CSC office or a financial institution/bank offering her home loan.He/she should submit all necessary documents along with the form.