The Pradhan Mantri Awas Yojana (PMAY) | Details | Apply | Subsidy

 

The Pradhan Mantri Awas Yojana (PMAY) | Details | Apply | Subsidy

 

One of the primary needs of any human being is a house. A house is a security that allows every individual to flourish under a sense of security, knowing that at the end of day’s hard work, there is a place where he or she can relax his or her mind a body and prep up for the struggle that waits for him or her the very next day. A house is where new dreams are born and are nurtured, thus making it one of the most basic needs for survival. From dens to huts to today’s multistoried building – all are screaming testimony of what really a house means.

PMAY Pradhan Mantri Awas Yojana

The Government of India took a major step towards ensuring that people can get a house within their financial capability. Prime Minister Narendra Modi launched a nationwide scheme known as Pradhan Mantri Awas Yojana. Previously known as Housing for All scheme, this Yojana comes with a bold vision of providing affordable housing solutions for all Indian citizens.

Launched on June 25, 2015, the primary aim for this Yojana is to ensure that 2 crore houses are built across nation’s length and breadth. The estimated completion year for the scheme is 2022, which means that these 2 crore homes will be constructed over a period of 7 years.

Here are the quick highlights of Pradhan Mantri Awas Yojana in a tabular format:

Parameters Details
Scheme Name Pradhan Mantri Awas Yojana
Launch Date 25th June, 2015
Estimated Time for Completion 7 years (2022)
Primary Objective Providing affordable houses to Indian citizens
Number of Houses to be Built 2 crores +
Primary Target Group Poor people of India belonging to LIG and EWS groups. LIG stands for low income group and EWS stands for Economically Weaker Sections
Primary Target Area LIG and EWS people of urban areas
Scope of Scheme Across India
Previous Name Housing for All scheme
Launched by Prime Minister Narendra Modi

Phases of Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana has its blueprint divided into three phases. In other words, the scheme is designed to be completed in three phases, which are:

Phase I

Phase I (one)
Target Date of Start April 2015
Target Date of Ending March 2017
Number of Cities Targeted 100 cities in India
What to Expect? Development and completion of affordable houses under the scheme.

Phase II

Phase II (two)
Target Date of Start April 2017
Target Date of Ending March 2019
Number of Cities Targeted 200 cities in India
What to Expect? Development and completion of affordable houses under the scheme.

Phase III

Phase III (three)
Target Date of Start April 2019
Target Date of Ending March 2022
Number of Cities Targeted All remaining cities in India
What to Expect? Development and completion of affordable houses under the scheme.

Who are the target group of Pradhan Mantri Awas Yojana?

As mentioned earlier, the target group for this scheme are people who belong to LIG and EWS segments of the urban societies of India. However, here are further specifications of people who are targeted as direct beneficiaries:

  • Indian women of all religions and castes. There will be no biased approach depending on the said factors and everyone will be equally eligible.
  • People who come from low income and economically weaker sections of the society.
  • Scheduled tribes.
  • Scheduled castes.

What are the primary features of Pradhan Mantri Awas Yojana?

The Pradhan Mantri Awas Yojana comes with several important features which are summed up in the bullet list provided below:

  • A subsidy will be granted to people from LIG and EWS segments of urban population. The subsidy will come from central government treasury and will range anywhere between INR 1 lakh and INR 2.30 lakh. This subsidy will allow people from target segment to afford a house under the scheme.
  • Government will also offer subsidy for interest rates on loans availed for the Yojana. 6.5% interest rate subsidy will be offered to the beneficiaries against the loans they avail. This interest subsidy will last for a period of 15 years from the date on which the loan is disbursed to the borrower.
  • Female members will get preference when it come allotment of houses under this scheme. Simply put, applications from female beneficiaries will be accepted easily compared to applications from male beneficiaries. This makes the scheme a pro-women scheme.
  • For ground floor houses, the government will give first preference to people who are differently abled or those people who are aged.
  • The government has strictly instructed that the housing enclaves developed under the scheme strictly follow eco-friendly construction technology.

Drastic reduction of EMI under Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana comes with a promise of subsidized interest rate of 6.5% against housing loans under the scheme. Currently the market rate for interest on housing loans is 10.5%. This means that those who want to avail housing loans for the scheme, they will enjoy a rate of interest which is 4% below the market rate. This clearly implies that there will be a drastic reduction in the amount of EMI one needs to repay every month.

Let us take a quick example of how much reduction can be expected in EMI payments under the Pradhan Mantri Awas Yojana.

Let us assume that a person takes out a loan of INR 6,00,000 under normal market rates (10.50%) for a loan tenure of 15 years. Thus, the amount of EMI he or she needs to pay per month will be INR 6,632 per month. In case the person wants to take out the same loan under the housing scheme, the interest rate applicable will be 6.5%. This will lead to an EMI of INR 4,050 a month. This means that under the scheme, the person needs to pay well over INR 2000 less compared to what he or she would normally pay under normal or market interest rates. This is a drastic drop in EMI, making home purchase far more pocket friendly for LIG and EWS people of the urban sectors of the nation.

Some more interesting features of Pradhan Mantri Awas Yojana

Here are three more important features of the scheme:

  • Under the scheme, the central government will be granting an average of INR 100,000 to each beneficiary.
  • Apart from that, a central government funded financial aid of INR 150,000 will be provided to beneficiaries for promotion of housing stock, however, one needs to keep in mind that 35% of the housing units are preserved for people belonging to EWS category.
  • Eligible poor from the urban sectors of the nation will get INR 150,000 central funding in case they want to build their own house or make some kind of renovations.

Credit-Linked Subsidy Scheme of Pradhan Mantri Awas Yojana

One of the key features of Pradhan Mantri Awas Yojana is its credit-linked subsidy scheme. We have already mentioned two important features of this housing scheme, which are:

  1. Government loan of up to INR 600,000 for a period of 15 years or less.
  2. Subsidized interest rate of 6.5%.

Now, these two components are not different from each other. In fact, one complements the other in such a way that they cannot exist independently.

To further explain…

The interest rate of 6.5% will be applicable only if someone applies for a home loan under the Pradhan Mantri Awas Yojana. There are some rules to this. The rules are:

  1. The loan amount cannot exceed 600,000 rupees if the subsidized interest rate is to be enjoyed.
  2. If the loan amount is greater than INR 600,000, any amount above that mark will be subject to normal market interest rates. So, if a person applies for INR 700,000 as loan, he or she will have to pay normal market interest rate (for home loans) for the additional INR 100,000.
  3. A person has to be from EWS or LIG category to be able to avail this loan.
  4. The subsidized rate of interest will be available for a maximum of 15 years. This means that if a person is taking out a loan for say, 20 years, he or she will have to pay 6.5% interest for first 15 years and then the interest rate will be increased to market rate for home loans. If, the tenure of the loan is less than 15 years, the subsidized rate will be applicable as the loan tenure will not exceed 15 years anyway.
  5. The loans can be availed for purchasing a new house constructed under the Pradhan Mantri Awas Yojana but that is not mandatory. This means that a person from LIG or EWS category can take out a loan under this scheme even if he or she already has a house that requires extension or renovation or he or she actually wants to build a new home on his or her own instead of purchasing a new apartment from the pool of housing units constructed under the government scheme.
  6. If the loan is taken for extension or renovation of a new house, the carpet area of the house has to be 30 square meters for EWS category people and 60 square meters for LIG category people. If this condition is not met, loan under this scheme cannot be availed.

Cities selected by government for Pradhan Mantri Awas Yojana

The government has come up with a list of all cities in different states and union territories where housing units will be constructed under the Pradhan Mantri Awas Yojana. The complete list is provided below:

State Cities
Andhra Pradesh Adoni
Amaravati Capital City
Anantapur
Bhimavaram
Chilakaluripet
Chirala
Chittoor
Dharmavaram
Eluru
Gudivada
Gudur
Guntakal
Guntur
GVMC
Hindupur
Kadapa
Kadiri
Kakinada
Kavali
Kurnool
Machilipatnam
Madanapalle
Mangalagiri
Nandyal
Narasaraopet
Nellore
Ongole
Palacole
Proddatur
Rajahmundry
Rayachoti
Srikakulam
Srikalahasti
Tadepalligudem
Tadpatri
Tenali
Tirupati
Vijayawada
Vizianagaram
Yemmiganur
Chhattisgarh Ahiwara
Ambikapur
Bade Bacheli
Bagbahara
Baikunthpur
Balod
Baloda Bazar
Bhatapara
BhilaiCharoda
Bhilai Nagar
Bijapur
Bilaspur
Birgaon
Champa
Chirmiri
Dantewada
Dhamtari
Durg
GobraNawapara
Jagdalpur
JashpurNagar
Kanker
Kawardha
Kondagaon
Korba
Mahasamund
Mana-Camp
Manendragarh
Mungeli
Naila-Janjgir
Narayanpur
Pendra
Raigarh
Raipur
Rajnandgaon
Sukma
Gujarat Ahmedabad
Amreli
Anand
Anklesvar
Bharuch
Bhavnagar
Bhuj
Deesa
Gandhidham
Gandhinagar
Himatnagar
Jetpur
Kadi
Kalol
Mahesana
Morbi
Navsari
Palanpur
Patan
Rajkot
Savarkundla
Sidhpur
Surat
Una
Unjha
Vadodara
Vallabh Vidyanagar
Valsad
Vapi
Visnagar
Haryana Faridabad
Gurgaon
Hisar
Karnal
Panipat
Rohtak
Sirsa
Sonipat
Yamunanagar
Himachal Pradesh Baddi
Bilaspur
Chamba
Dharmsala
Hamirpur
Kullu
Mandi
Nahan
Nalagarh
Parwanoo
Shimla
Solan
Una
Jammu & Kashmir Anantnag
Badgam
Baramula
Bashohli
Bhaderwah
Bijbehara
Doda
Ganderbal
Handwara
Jammu
Kargil
Kathua
Kishtwar
Kupwara
LehLadakh
Pulwama
Punch
R.S. Pora
Rajauri
Ramban
Samba
Shupiyan
Sopore
Srinagar
Udhampur
Jharkhand Bokaro Steel City
Chas
Chirkunda
Deogarh
Dhanbad
Dumka
Giridih
Gumla
Hazaribag
Jamshedpur
Lorahdaga
Medininagar
Phusro
Ramgarh Cantonment
Ranchi
Kerala Alappuzha
Kalpetta
Kannur
Kasaragod
Kochi
Kollam
Kottayam
Kozhikode
Malappuram
Palakkad
Pathanamthitta
Thiruvananthpuram
Thodupuzha
Thrissur
Madhya Pradesh Agar
Alirajpur
Anuppur
Ashoknagar
Ashta
Balaghat
Barwani
Berasia
Betul
Bhind
Bhopal
Bina-Etawa
Budni
Burhanpur
Chandla
Chhatarpur
Chhindwara
Dabra
Damoh
Datia
Dewas
Dhar
Dindori
GanjBasauda
Guna
Gwalior
Harda
Hoshangabad
Indore
Itarsi
Jabalpur
Jhabua
Khajuraho
Khandwa
Khargone
Khurai
Maihar
Manawar
Mandla
Mandsaur
Morena
Murwara (Katni)
Nagda
Narsimhapur
Nasrullaganj
Neemuch
Panna
Patharia
Pithampur
Raisen
Rajgarh
Rampur Baghelan
Ratlam
Rehti
Rewa
Sagar
Sarni
Satna
Sehore
Sendhwa
Seoni
Shahdol
Shahganj
Shajapur
Sheopur
Shivpuri
Sidhi
Sihora
Singrauli
Sonkatch
Tikamgarh
Ujjain
Umaria
Vidisha
Manipur Andro
Bishnupur
Heirok
Imphal
Jiribam
Kakching
KakchingKhunou
Kumbi
Kwakta
Lamlai
Lamsang
Lilong (Imphal West)
Lilong (Thoubal)
Mayang Imphal
Moirang
Moreh
Nambol
Ningthoukhong
Oinam
Samurou NP
Sekmai Bazar
SikhongSekmai
Sugnu
Thongkhong Laxmi Bazar
Thoubal
Wangjing
Wangoi
Yairipok
Nagaland Changtongya
Chumukedima
Dimapur
Jalukie
Kiphire
Kohima
Longleng
Medziphema
Mokokchung
Mon
Naginimora
Peren
Pfutsero
Phek
Tseminyu
Tuensang
Tuli
Wokha
Zunheboto
Odisha Anandpur
Athagad
Balangir
Baleshwar
Banapur
Banki
Bargarh
Baripada
Bhadrak
Bhawanipatna
Bhubaneswar
Biramitrapur
Brahmapur
Brajarajnagar
Byasanagar
Choudwar
Cuttack
Debagarh
Dhenkanal
Jagatsinghapur
Jajapur
Jeypur
Jharsuguda
Kantabanji
Khariar
Khordha
Kochinda
Konark
Koraput
Malkangiri
Nayagarh
Paradip
Puri
Rairangpur
Rajagangapur
Raurkela
Rayagada
Sambalpur
Sundargarh
Talcher
Titlagarh
Umarkote
Rajasthan Ajmer
Alwar
Balotra
Banswara
Baran
Beawar
Bharatpur
Bhilwara
Bhiwadi
Bikaner
Bundi
Chaksu
Chittaurgarh
Churu
Dhaulpur
Falna
Ganganagar
Gangapur City
Hanumangarh
Hindaun
Jaipur
Jhalawar
Jhunjhunun
Jodhpur
Kishangarh
Kota
Makrana
Nagaur
Nathdwara
Pali
Pratapgarh
Pushkar
Rajsamand
Sardarshahar
SawaiMadhopur
Sikar
Sujangarh
Tonk
Udaipur
Vijainagar
Telengana Achampet
Adilabad
Armur
Bhongir
Bodhan
Gajwel
GHMC
Jangaon
Karimnagar
Khammam
Mahabubabad
Mahbubnagar
Medak
Metpalle
Miryalaguda
Nagarkurnool
Nalgonda
Nirmal
Nizamabad
Palwancha
Sangareddy
Siddipet
Sircilla
Suryapet
Vicarabad
Wanaparthy
Warangal
Zahirabad
West Bengal Alipurduar
Arambag
Asansol
Ashokenagar Kalyangarh
Baduria
Baidyabati
Balurghat
Bankura
Bansberia
Baranagar
Barasat
Barddhaman
Barrackpore
Baruipur
Basirhat
Beldanga
Berhampore
Bhadreswar
Bhatpara
Bidhannagar
Birnagar
Bishnupur
Bolpur
Bongaon
Budge Budge
Chakdaha
Champdani
Chandannagar
Chandrakona
Contai
Cooper’s Camp
Dainhat
Dalkhola
Dankuni
Darjeeling
Dhulian
Dhupguri
Diamond Harbour
Dinhata
Dubrajpur
Dum Dum
Durgapur
Egra
English Bazar
Gangarampur
Garulia
Gayespur
Ghatal
Gobardanga
Guskara
Habra
Halida
Haldibari
Halisahar
Howrah
Hugli-Chinsurah
Islampur
Jalpaiguri
Jangipur
JaynagarMazilpur
Jhalda
Jhargram
Jaiganj-Azimganj
Kaliaganj
Kalimpong
Kalna
Kalyani
Kamarhati
Kanchrapara
Kandi
Katwa
Kharagpur
Kharar
Khardah
Kooch Bihar
Kolkata
Konnagar
Krishnanagar
Kshirpai
Kurseong
Madhyamgram
Maheshtala
Mal
Mathabhanga
Medinipur
Mekliganj
Memari
Mirik
Murshidabad
Nabadweep
Naihati
Nalhati
New Barrackpore
North Barrackpore
North DumDum
Old Malda
Panihati
Panskura
Pujali
Puruliya
Raghunathpur
Raiganj
RajpurSonarpur
Ramjibanpur
Rampurhat
Ranaghat
Rishra
Sainthia
Santipur
Serampur
Siliguri
Sonamukhi
Suri
South DumDum
Suri
Taherpur
Taki
Tamluk
Tarakeswar
Titagarh
Tufanganj
Uluberia
UttarparaKotrung

Union territories that will be covered under this scheme are:

  • Andaman and Nicobar Islands
  • Chandigarh
  • Dadra and Nagar Haveli
  • Daman and Diu
  • Lakshadweep
  • National Capital Territory of Delhi – Delhi
  • Puducherry (previously Pondicherry)

How to apply for Pradhan Mantri Awas Yojana?

No information is available as of now. Once the information is made available by the government, we will update the information here so that you can get a detailed blueprint of what to do and how to do in order to apply for Pradhan Mantri Awas Yojana.

All about the subsidy, interest rate and EMI calculations:

The equated monthly installment to be paid on the housing loan under this government scheme will be decreased to a considerable amount. The loan facility for this housing scheme is now available at 10.5 percent of interest rate. In accordance with the calculation, the equated monthly installment on these types of loans of six lakhs for a long duration of fifteen years falls somewhere around 6,632 rupees.

According to the PMAY, the new announce equated monthly installment will be four thousand fifty rupees and this is because of the subsidy of 6.5 percent. Therefore, the applicants will get the advantage of saving a minimum of two thousand rupees in the payment of Equated monthly installment. The beneficiaries will get the central grant of approximately one lakh rupees. The individuals who belong to LIG and EWS will be offered with 6.50 percent subsidy with the assistance of credit linked subsidy scheme.

Other Schemes

  3 Responses to “The Pradhan Mantri Awas Yojana (PMAY) | Details | Apply | Subsidy”

  1. sir i belong to medium class family and i need bank loan but many times he tell me bank cant give any bank loan then what can i do ? sanjeev

  2. Rajasthan me Ajmer jile me srkar be awas yojna to chlae h lekin bnaya nhi

  3. Sir I belongs to a medium class family i want the yawas yojana

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