We all know food, clothing, and shelter are three basic needs humans need to survive and prosper. A shelter provides us protection, is the living quarters for us and our families and provides us with privacy for physical and physiological well-being. As per Wikipedia, 86.6% of Indians have houses but this figure was not so prominent 5 years ago when PMAY was issued.
According to census reports of 2015, more than 1.77 million people in India are homeless and more than 21 million of them live in kachcha houses located in slums. Due to such severe cases of lack of proper shelter among lower-middle and lower economic income groups, the Indian government passed an act called Pradhan Mantri Awas Yojana (PMAY). This law was issued on 25th June 2015 by the central government’s council for rural and urban development. This act (PMAY) would stay in action till November 2022.
What facilities does PMAY provide?
Pradhan Mantri Awas Yojana (PMAY) is resolved towards providing housing loans to people at low rates of interest. Willing civilians could take a subsidy up to Rs 12 lakhs at a rate of interest between 3% to 6.5% from various certified National Housing Banks (NHB). This loan would have a tenure of 20 years.
The Target of PMAY?
According to the Ministry of Rural and Urban Development, the main motive of PMAY was to achieve the objective of Housing for all by the year 2022, to construct 2.95 crore houses by 2022.
Who can avail of the facilities of PMAY?
The facilities of Pradhan Mantri Awas Yojana (PMAY) could be availed by people falling in any one of these categories.
- (MIG I) Middle Income Group 1 – Applicable for civilians who have an annual income anywhere between Rs.6 lakhs to Rs.12 lakhs.
- (MIG II) Middle Income Group 2 – Applicable for civilians who have an annual income anywhere between Rs.12 lakhs to Rs.18 lakhs.
- (LIG) Lower Income Group – Applicable for civilians who have an annual income anywhere between Rs.3 lakhs to Rs.6 lakhs.
- (EWS) Economically Weaker Section – Applicable for civilians who have an annual income of less than Rs.3 lakhs.
PMAY Interest Subsidy :
- EWS, Interest rates of subsidy – 6.50% per annum, maximum loan offered – Rs 6 lakhs.
- LIG, Interest rates of subsidy – 6.50% per annum, maximum loan offered – Rs 6 lakhs.
- MIG I, Interest rates of subsidy – 4.00% per annum, maximum loan offered – Rs 9 lakhs.
- MIG II, Interest rates of subsidy – 3.00% per annum, maximum loan offered – Rs 12 lakhs.
How to Apply for PMAY Online?
You can apply for Pradhan Mantri Awas Yojana through the PMAY portal. You will need your Aadhaar card number to sign up for the online portal. Once you have entered the Aadhaar card number a dialogue box will pop up, keep following that appear on the top left corner of the window and you will be able to fill up your form in no time.
How will the PMAY Subsidy be credited?
If the applicant’s request for PMAY is accepted they will get a notification and confirmational message on their respective phone numbers along with a unique approval number. Applicants can then go to any HNB located near them and register for the loan with the approval number they received. A few days later, the applicant’s bank account will be credited a designated amount as per their economical category.
Top 10 Banks offering loans under PMAY Scheme :
- State Bank of India
- Bank of Baroda
- Canara Bank
- ICICI Bank
- IDFC First Bank
- Bandhan Bank
- Bank of India
- HDFC Bank
- IDBI Bank
- Punjab National Bank
- Axis Bank
The PMAY has been hugely successful, for the last 6 years. It has helped more than 10 million individuals build their dream houses. Hopefully, it will be able to reach its target until the act is dissolved in 2022.