Pradhan Mantri Awas Yojana
5paisa Research Team
Last Updated: 31 May, 2023 06:03 PM IST
Want to start your Investment Journey?
Content
- What is Pradhan Mantri Awas Yojana?
- Objective of PM Awas Yojana
- Features of the PMAY Scheme
- Type of PMAY Scheme
- Income Range for Economic Groups under PMAY Housing Scheme
- Pradhan Mantri Awas Yojana Scheme Details Urban
- Offers and Advantages of PMAY-Gramin
- Pradhan Mantri Awas Yojana Eligibility Criteria
- How to Apply for the PMAY Scheme
- Documents Required for Pradhan Mantri Awas Yojana
- Tax Benefits under PMAY
The Pradhan Mantri Awas Yojana is government-backed housing finance in India. The affordable housing scheme was launched on 1 June 2015. Initially, the last date for availing of the scheme was 31 March 2022.
But the date has been extended to 31 December 2024. Dive into this article to gather important details about the Pradhan Mantri Awas Yojana scheme.
What is Pradhan Mantri Awas Yojana?
The PMAY is a CLSS or a Credit Linked Subsidy Scheme. Therefore, any availing of the PMAY scheme will get a housing subsidy. But it is available only when an individual is buying or constructing a new house.
The Awas Yojana scheme has an interest rate of up to 6.50% per annum. The maximum tenure for the housing scheme is 20 years.
Objective of PM Awas Yojana
The objective of the scheme is to offer affordable housing for all. The scheme is particularly targeted at offering sustainable and affordable housing for the poor and low-income groups. The scheme will also favour minorities, including the transgender community and widows from low-income groups. The Pradhan Mantri Awas Yojana makes it possible with a lower interest rate than other home loans.
Features of the PMAY Scheme
The different features of PMAY are as follows:
● A subsidy interest rate of 6.50% per annum is charged on housing loans for 20 years.
● Eco-friendly and sustainable technologies will be used to construct homes under this scheme.
● The PMAY scheme will cover the overall urban areas in the country, including 4041 statutory towns. The scheme will prioritise 500 Class 1 cities for building houses. The construction will be done in three stages.
● Senior citizens and differently-abled individuals are given the preference of ground floors.
● The Pradhan Mantri Awas Yojana scheme will be implemented in all statutory towns in India from the initial stages.
Type of PMAY Scheme
The PM Awas Yojana is not restricted to the bigger towns and cities in India. Slums, villages, and other rural areas are also included under this scheme. The two types of PMAY schemes are as follows:
1. Pradhan Mantri Awas Yojana Gramin
The PMAY-G (Gramin) is for families under the Economically Weaker Sections and Lower Income Groups. It ensures that they can find affordable financing to build their homes.
2. Pradhan Mantri Awas Yojana Urban
The PMAY-U (Urban) scheme includes around 4,300 towns and cities in India. The urban scheme includes various developmental authorities for planning across urban centres.
Income Range for Economic Groups under PMAY Housing Scheme
Before applying for the PM Awas Yojana scheme, applicants should consider whether they are eligible for the subsidy. The entire family's income is calculated to determine the eligibility for subsidy. The different income sources that are considered include jobs, investments, and more.
The eligible income range for different economic groups under the low-cost housing scheme is as follows:
Economic Group |
Annual Income Range |
Available Subsidy |
EWS |
Up to Rs 3 lakh |
6.5% |
LIG |
Rs 3 lakh to Rs 6 lakh |
6.5% |
MIG I |
Rs 6 lakh to Rs 12 lakh |
4% |
MIG II |
Rs 12 lakh to Rs 18 lakh |
3% |
Families with an annual income above Rs 18 lakh are not eligible for the Pradhan Mantri Awas Yojana scheme.
Pradhan Mantri Awas Yojana Scheme Details Urban
The details of the Pradhan Mantri Awas Yojana urban scheme are as follows:
Benefits |
MIG-I |
MIG-II |
Interest rate subsidy |
4% |
3% |
Maximum subsidy amount |
Rs 2.35 lakh |
Rs 2.30 lakhs |
Maximum home loan tenure |
20 years |
20 years |
Maximum home loan quantum for subsidy |
Rs 9 lakh |
Rs 12 lakh |
The discount rate for interest subsidy NPV |
9% |
9% |
Maximum carpet area |
160 sq. m |
200 sq. m |
Offers and Advantages of PMAY-Gramin
The different advantages of the PMAY rural housing scheme are as follows:
Benefits |
EWS |
LIG |
Interest rate subsidy |
6.5% |
6.5% |
Maximum subsidy amount |
Rs 2.67 lakh |
Rs 2.67 lakh |
Maximum home loan tenure |
20 years |
20 years |
Maximum home loan quantum for subsidy |
Rs 6 lakh |
Rs 6 lakh |
The discount rate for interest subsidy NPV |
9% |
9% |
Maximum carpet area |
30 sq. m |
60 sq. m |
Pradhan Mantri Awas Yojana Eligibility Criteria
The different eligibility criteria under the government housing scheme are as follows:
● The annual income range of a family should be below Rs 18 lakh to be eligible for the scheme. According to the income range of families, they are divided into EWS, LIG, and MIG categories.
● The PMAY scheme is available only for buying or constructing new properties. Moreover, the applicant cannot own any pucca properties while applying for this scheme.
● The property papers or the deed should contain a woman's name. In a sole proprietorship, the woman must own the house. If it's joint ownership, one of the owners must be a woman. This rule can be avoided only when there are no female members in the family.
● Only those who haven't availed of any benefits from the central government or any other housing finance scheme from the state or the central government will be eligible.
● The benefits from the scheme are available only once. If you have already availed of the benefits, you cannot apply for it to buy another house.
● The house or property purchase must take place in one of the cities, towns, or villages in India, according to the Census.
● If the reason for applying for a home loan is an extension or renovation of an existing property, the work must be completed within 36 months of getting the first loan instalment.
How to Apply for the PMAY Scheme
The steps to apply for the PMAY scheme are as follows:
● Step 1: Open the official central government website of the Pradhan Mantri Awas Yojana scheme.
● Step 2: Locate the Menu tab and select the Citizen Assessment option.
● Step 3: Enter your Aadhaar number to continue with the process.
● Step 4: After successfully entering the Aadhaar number, the application page will open on your screen.
● Step 5: You will have to enter all the necessary details on this page, including your income details, bank account details, personal details, and more.
● Step 6: Before submitting the application, check all the details that you have entered carefully.
● Step 7: A unique application number will be generated for you after hitting the Save option.
● Step 8: Next, download the filled-up application form for future reference.
● Step 9: You can deposit the form at your nearest CSC office or any financial institution offering PMAY. You will also have to submit all the required documents with the application form.
If you are not comfortable applying for the PMAY scheme online, you can easily apply through an offline procedure. For that, you will have to visit an authorised financial institution that offers the PMAY scheme.
Documents Required for Pradhan Mantri Awas Yojana
The different documents required for the Pradhan Mantri Awas Yojana will differ for salaried and self-employed applicants.
The documents required for salaried applicants are as follows:
● Application form
● Identity proof: PAN card is mandatory. Apart from that, applicants should provide other identity proof like a Voter ID card, Aadhaar card, driving licence, and passport.
● Address proof: Voter ID card, Aadhaar card, valid passport, utility bills, bank account statements, or property tax receipts.
● Income proof: ITR or Form 16, last 2 months' salary slip, and 6 months' bank statement
● Property documents: Agreement to sell, a chain of required property documents, buyer agreement or allotment letter, and receipts related to payments made to the developer.
The documents required for self-employed applicants are as follows:
● Address proof of business: It can include a PAN card, VAT registration certificate, shops and establishment certificate, SEBI registration certification, etc.
● Income proof: It can include the ITR for the last two years, the balance sheet, or the profit and loss statement.
Applicants also need to submit the last six months' bank account statements of their business and personal accounts.
Apart from that, self-employed applicants will have to submit all the documents the same as salaried applicants.
Tax Benefits under PMAY
The different tax benefits available under the Pradhan Mantri Awas Yojana scheme are as follows:
● Under section 80C, applicants enjoy a deduction of up to Rs 1.5 lakh annually on the principal repayment amount.
● Section 24(b) enables applicants to enjoy deductions of up to Rs 2 lakhs on the interest payment.
● Section 80EE enables first-time homebuyers to enjoy an annual tax exemption of up to Rs 50,000.
● According to Section 80EEA, applicants can enjoy deductions of up to Rs 1.5 lakh on interest payments.
More About Savings Schemes
- Section 194IC
- PF Form 11
- Form 13 For PF Transfer
- EPF Form 20
- Corporate Fixed Deposit
- Fixed Deposit (FD) vs Recurring Deposit (RD)
- Income Tax on Recurring Deposit RD
- How to Withdraw Money from Unclaimed EPF Account
- How to Get Your Name Changed in the EPF
- Steps to Upload KYC for EPF UAN
- EPF Payment
- Difference between GPF, EPF, and PPF
- Difference Between APR vs APY
- Atal Pension Yojana Tax Benefits
- How To Open Atal Pension Yojana (APY) Account Online
- How to Close Atal Pension Yojana Account
- How to Change Details in Atal Pension Yojana Scheme
- NPS v/s SIP
- NPS Lite Aggregators List
- NPS Customer Care Number
- National Pension Scheme for NRI
- National Pension Scheme (NPS) Withdrawal Rules
- Best Child Investment Plans In India
- Post Office PPF Account
- PPF Account Withdrawal Rules
- PPF Deposit Limit
- PPF Account Age Limit
- PPF Account for Minors
- PPF Online Payment
- ELSS Vs PPF
- Loan Against PPF
- Post Office PPF Interest Rate
- PPF Interest Rates 2023 - 24
- What is Pradhan Mantri Jan Arogya Yojana
- Balika Samridhi Yojana
- What is member ID in PF?
- How To Merge Two UAN Numbers Online
- How to Merge Two PF Accounts?
- How to Raise Grievance in EPFO
- How to Check PF Balance in Mobile: A Comprehensive Guide
- How to Download Your EPF Passbook: A Comprehensive Guide
- TDS on PF Withdrawals: A Comprehensive Guide
- How to Transfer Your PF from One Company to Another?
- EPF vs PPF
- PF Balance Check with UAN Number Without Password
- PF Balance Check without UAN number
- Introduction to Savings Schemes
- Difference Between VPF And PPF
- EPF Form 10D
- NPS vs PPF
- Superannuation Meaning: What is Superannuation
- What is Fixed Deposit?
- Pradhan Mantri Awas Yojana
- Atal Pension Yojna vs NPS
- NPS (National Pension Scheme Charges)
- EPF vs EPS
- EPF Form 2
- What are Tier 1 and Tier 2 in NPS?
- NPS Tier 2
- NPS Tier 1
- Senior Citizen Saving Scheme (SCSS)
- General Provident Fund (GPF)
- Pension Fund Regulatory & Development (PFRDA)
- SBI Annuity Deposit Scheme
- GPF Interest Rates 2023
- Unit Link Insurance Plan (ULIP)
- List of Bank Mergers
- PRAN Card
- Foreign Currency Non Resident Account (FCNR)
- What is EDLI?
- What Is NPS Interest Rates?
- What is Form 15g
- Saksham Yuva Yojana
- Why Invest in PPF?
- How To Check PPF Account Balance
- NSC Interest Rate
- NSC – National Savings Certificate
- Swavalamban Pension Yojana
- KVP Interest Rate
- PF Withdrawal Rules 2022
- NPS Returns
- National Pension Scheme (NPS)
- Jeevan Pramaan Patra - Life Certificate for Pensioners
- Kisan Vikas Patra (KVP)
- PF Form 19
- PF Withdrawal Form
- EPS - Employee Pension Scheme
- PPF Withdrawal
- Atal Pension Yojana (APY)
- EPF Form 5
- EPF Interest Rate
- Check Your PF Balance Online
- Employee Provident Fund (EPF)
- UAN Registration & Activation Online
- UAN Member Portal
- Universal Account Number
- National Savings Scheme
- Post Office Tax Saving Schemes
- Post Office Monthly Income Scheme
- Post Office Savings Schemes
- EPF Claim Status
- EPF Form 31
- EPF Form 10C Read More
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Frequently Asked Questions
The maximum tenure of the Awas Yojana scheme is 20 years.
If you fall under the MIG-I or MIG-II category, you will have to provide the Aadhaar card details of all your family members.
You can apply for the PMAY scheme online. You can also attend a financial institution that supports PMAY to apply for it.
Since your family's annual income is below Rs 3 lakh, you belong to the EWS section under PMAY.
The extended data for PMAY MIG is 31 December 2024.