What is Pradhan Mantri Awas Yojana?

What is Pradhan Mantri Awas Yojana?

According to a recent report, Pradhan Mantri Awas Yojana, a housing initiative by the Central Government, has achieved 92% of its target in its first phase. The government has also promised to offer additional budgetary support of Rs.20,000 crore for FY2020-21.

These data testify favourable conditions for making an application under the PMAY scheme. Launched as an initiative to support the goal of offering affordable “housing for all” by 2022, the scheme has facilitated the construction of houses in both rural and urban areas.

Selected beneficiaries can receive a lucrative PMAY subsidy against a reasonable interest rate under this scheme.

Understanding how the scheme operates before applying is crucial as it would help reap maximum benefits.

Why make an application under PM Awas Yojana?

The PMAY Scheme offers multiple benefits to its beneficiaries, including –

  • This scheme uses eco-friendly material to construct houses, thereby supporting sustainable living.
  • Under this scheme, senior citizens and differently-abled individuals get the option to apply for ground floor accommodation.
  • Beneficiaries can also gain a subsidy of up to 6.50% on the interest rate of a home loan for a tenor of 20 years.
  • Under this Pradhan Mantri Awas Yojana, woman applicants or property co-owners can receive added benefits.

However, these advantages can be gained by individuals clearing the eligibility parameters. These individuals can check their application status and name under the PMAY list tab, published yearly.

What is the Pradhan Mantri Awas Yojana eligibility criteria?

Potential applicants who want to avail of funds under this scheme need to fulfil government-specified PMAY parameters.

Some of the criteria under PMAY eligibility are mentioned below –

  • The applicant mustn’t be an owner of a pucca house in any part of India.
  • Only households with an annual income of up to Rs.18 lakh are allowed to make an application under this scheme
  • A beneficiary should not be a receiver of additional housing scheme benefits offered by the government.

If an individual fails to meet the parameters under Pradhan Mantri Awas Yojana Eligibility, he/she can look for alternatives like a home loan.

This would allow him/her to avail substantial credit against simple eligibility and minimum documentation. In this process, one can find HFCs that extend pre-approved offers to simplify loan processing and make it prompt. Such offers are also available on a range of financial products like loans against property, home loan and many more. Individuals can check their pre-approved offer by providing their name and contact number.

Apart from eligibility criteria, individuals should also note the application process for ease.

What is the application process of the PMAY scheme?

Interested applicants can follow this step-by-step guide to apply for Pradhan Mantri Awas Yojana successfully.

  1. Visit the official PMAY website.
  2. On the homepage, open the “Citizen Assessment” tab and select the respective category, i.e. EWS, LIG I & II.
  3. Individuals have to enter the Aadhaar card details after selecting the income category.
  4. Fill the PMAY application form with professional, personal and financial information on the redirected page.
  5. Finally, enter the captcha code for verification and click on the ‘submit’ option.
  6. An application number is generated after successful submission. Individuals can use this application number to keep a tab on the PMAY status.

After selection, beneficiaries are required to submit a few documents to avail funds through this scheme. Some of the mandatory documents are –

  • Income proof like bank account details, salary slips, etc.
  • Address proof
  • Aadhaar card
  • Identity proof
  • ST or SC caste certificate, whichever applicable.

Pradhan Mantri Awas Yojana is a beneficial scheme planned for the welfare of the country’s economically weaker section. This scheme provides financial backing to individuals planning to buy a property by offering a subsidised home loan interest rate.

Nonetheless, if one fails to surpass the set parameters, they can opt for a home loan under PMAY against minimal documentation. For a streamlined process, potential borrowers must read through the updated regulations of the PMAY scheme and undertake a decision accordingly.