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  7. Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY)

Updated on: 24 May, 2024 05:45 PM

The honourable Prime Minister of India, Mr. Narendra Modi, launched the Pradhan Mantri Awas Yojana Scheme (PMAY) on 1st June 2015. The scheme aims to provide housing facilities to those individuals who cannot afford big and expensive houses themselves. It also aims to provide housing to all individuals by the end of the year 2022, when India completes 75 years of achieving independence from the British Rule. Pradhan Mantri Awas Yojana has two components which are

  • Pradhan Mantri Awas Yojana Urbana which aims to provide affordable housing to individuals living in urban areas including slum dwellers. The PMAY Urban scheme aims to create about 20 million affordable homes for individuals by the year 2022.
  • Pradhan Mantri Awas Yojana Rural under which the Government has envisaged to create about 4 crore houses for individuals in the rural area by the year 2022. The cost of constructing the house would be shared by the Central and State Government in the ratio of 60:40 in plain areas and 90:10 in hilly areas.

Contents

Implementation of Pradhan Mantri Awas Yojana (PMAY) Scheme

The scheme was implemented in 2015 and since then it has undergone many phases of implementation. Affordable home in more than 500 Class 1 cities would be developed in the following three phases

Phases Start and End Date Number of cities covered
Phase 1 1st April 2015 to 31st March 2017 100
Phase 2 1st April 2017 to 31st March 2019 200
Phase 3 1st April 2019 to 31st March 2022 Remaining cities

Objectives of the Pradhan Mantri Awas Yojana (PMAY) scheme

Pradhan Mantri Awas Yojana as known by all was launched with the objective of "har kisi k sar par chath". The broad motive is known by all but,let us develop an understanding on the specifically benefited classes. The Pradhan Mantri Awas Yojana aimed at

  • Rehabilitation of those who live in slums. This rehabilitation would be done using land as a resource and with participation from private builders and financial institutions
  • To provide a credit linked subsidy scheme to individuals who borrow loans for buying affordable housing
  • To provide individuals with affordable housing facilities
  • Provide accessible homes to economically weaker sections of the society, women, minority communities and senior citizens
Objectives of the Pradhan Mantri Awas Yojana

Features of the Pradhan Mantri Awas Yojana (PMAY) scheme

The Pradhan Mantri Awas Yojana (PMAY) scheme has some salient features which need to be highlighted. These features include the following

  • The scheme allows affordable housing finance to specific categories of individuals which include Economically Weaker Sections, Low Income Groups and Middle Income Groups
  • Middle Income Group category is further sub-divided into Middle Income Group I and Middle Income Group II
  • People who are disabled and those who are senior citizens are given the preference of buying a house on the ground floor
  • The scheme is supposed to cover 4041 towns and 500 Class I cities in three different phases
  • A subsidized interest rate is allowed on home loans borrowed for buying or constructing house property under the affordable housing scheme
  • Almost all Indian banks and non-banking financial companies offer home loans under the affordable housing scheme

Who can avail the benefits of the Pradhan Mantri Awas Yojana (PMAY) scheme?

The Pradhan Mantri Awas Yojana (PMAY) scheme lists down certain eligibility parameters and individuals fulfilling the specified parameters are only allowed to get an interest subsidy. The parameters are as follows

  • The beneficiary family should not own a pucca house in their name or in the name of any family member in any part of India
  • A beneficiary family would mean the husband, wife and unmarried children
  • Households which have a total income ranging between INR 6 lakhs and INR 18 lakhs are eligible to avail the Pradhan Mantri Awas Yojana (PMAY) scheme
  • When calculating income of the household, the income of the spouse can be included
  • The Pradhan Mantri Awas Yojana (PMAY) scheme can be availed only to build or construct a new house. Loan under the scheme cannot be used to do alterations or changes on an existing house
  • Women, individuals belonging to Scheduled Castes and Scheduled Tribes, individuals belonging to Lower Income Groups, individuals belonging to Economically Weaker Sections and individuals belonging to Middle Income Group can apply for the scheme

To determine which households qualify as beneficiaries of the scheme, the Government of India considers the Socio Economic and Caste Census (SECC) of 2011 as the database. The village panchayats and also the tehsils are considered and consulted with when creating a list of beneficiary households who qualify for the scheme. This is done so that the scheme is completely transparent and offers equal opportunities to eligible beneficiary families.

What does the Pradhan Mantri Awas Yojana (PMAY) scheme offer?

The benefits of the scheme depends on which income category does the individual belong to. The details of the four income categories eligible for the scheme and their respective benefits are as follows

Details Economically Weaker Section Low Income Group Medium Income Group I Medium Income Group II
Range of annual income of the household INR 0 to INR 3 lakhs INR 300,001 to INR 6 lakhs INR 600,001 to INR 12 lakhs INR 12,00,001 to INR 18 lakhs
Maximum amount of home loan which can be availed to claim an interest subsidy Up to INR 6 lakhs Up to INR 6 lakhs Up to INR 9 lakhs Up to INR 12 lakhs
Available interest subsidy 6.50% per annum 6.50% per annum 4% per annum 3% per annum
Maximum duration of the home loan 20 years 20 years 20 years 20 years
Maximum carpet area of the dwelling unit 30 square metres 60 square metres 160 square metres 200 square metres
Discount rate applicable for the calculation of the Net Present Value of the interest subsidy available under the scheme 9% per annum 9% per annum 9% per annum 9% per annum
Maximum amount of interest subsidy available under the scheme INR 267,280 INR 267,280 INR 235,068 INR 230,156

Calculating the applicable interest rates under Pradhan Mantri Awas Yojana (PMAY)

Now that you know that you get an interest subsidy, the next step is to calculate the actual interest rate payable for the loan you avail. This calculation can be done using online Pradhan Mantri Awas Yojana (PMAY) interest rate calculators which are available on most websites.

Applying online for the Pradhan Mantri Awas Yojana (PMAY) scheme

You can apply for the Pradhan Mantri Awas Yojana (PMAY) scheme either

  • Online or
  • Offline

Online application to PMAY can be made by following some simple steps. These steps include –

  • Go to the official website of the scheme which is http://pmaymis.gov.in/
  • On the home page of the website, click on Menu and then on Citizen Assessment.
  • You would have to provide your 12-digit Aadhar card number
  • Once your Aadhar card number has been verified, you would be redirected to the page wherein you can apply for the Pradhan Mantri Awas Yojana (PMAY) scheme
  • To complete your application, furnish your details like your name and contact details, income, address, bank account, etc.
  • Once you provide all the required information, click I am aware of and then Save your completed application
  • Once your application is saved, you will get an application number which can be used as a reference in tracking your application
  • Download the application form which you have filled
  • Submit this downloaded application to avail a loan at a subsidized interest rate. Submission is to be done to the closest CSC offices and the financial institution from which you are applying for a home loan under the Pradhan Mantri Awas Yojana (PMAY) scheme

How to make an offline application under PMAY?

If, on the other hand, you want to apply offline, the process is as follows

  • Register yourself at the Common Service Centre (CSC) closest to your home
  • A registration fee of INR 25 would be payable for such registration
  • The application form would be filled offline and then submitted to the CSC
  • When the form is submitted, an application number would be generated and provided to you that you can use for tracking your application.

Tracking your Pradhan Mantri Awas Yojana (PMAY) application

After you have applied for the Pradhan Mantri Awas Yojana (PMAY) scheme, you can track the status of your application using the following steps

  • Go to the official website of the scheme which to track your application status https://www.pmaymis.gov.in/Track_Application_Status.aspx. A page as shown below will open up Tracking your Pradhan Mantri Awas Yojana (PMAY) application
  • Once you select the tracking option, a new page would open which would help you track your application
    By using your name, father's name and mobile number or,
    tracking option
    By using your assessment ID
    assessment ID
  • Choose the most suitable option, provide the necessary information relevant to the chosen option and your status would be displayed.

List of banks registered under the Pradhan Mantri Awas Yojana (PMAY) scheme

The following banks allow individuals to avail the Pradhan Mantri Awas Yojana (PMAY) scheme

Central Bank of India Vijaya Bank State Bank of Patiala Bank of India
United Bank of India UCO Bank Syndicate Bank Bank of Baroda
State Bank of Travancore State Bank of Mysore State Bank of Hyderabad Andhra Bank
State Bank of Bikaner and Jaipur Punjab National Bank Punjab & Sind Bank Allahabad Bank
Indian Bank Dena Bank Corporation Bank Oriental Bank of Commerce
Canara Bank Bhartiya Mahila Bank Laimited Bank of Maharashtra Indian Overseas Bank
South Indian Bank Limited Nainital Bank Limited Lakshmi Vilas Bank Karnataka Bank Limited
Jammu and Kashmir Bank Dhanlaxmi Bank Limited City Union Bank ICICI Bank Limited
Yes Bank The Federal Bank Limited Karur Vysya Bank Limited DCB Bank Limited
Catholic Syrian Bank Axis Bank Limited Tamilnad Mercantile Bank Limited Purvachal Bank
Ellaquai Dehati Bank Kashi Gomti Samyut Bank Odisha Gramiya Bank Vanachal Gramin Bank
Satlij Gramin Bank Uttarbanag Kshetriya Gramin Bank Madhyanchal Gramin Bank Telangana Grameena Bank
Meghalaya Rural Bank Sarva UP Gramin Bank Tripura Gramin Bank Rajasthan Marudhara Gramin Bank
Bihar Gramin Bank Jharkhand Gramin Bank Chhattisgarh Rajya Gramin Bank J& K Grameen Bank
Chaitanya Godavari Grameena Bank Baroda Rajasthan Kshetriya Gramin Bank Utal Grameen Bank Bangiya Gramin Vikas Bank
Kaveri Grameena Bank Central Godavari Grameena Bank Saurashtra Grameen Bank Sarva Haryana Gramin Bank
Pragathi Krishna Gramin Bank Manipur Rural Bank Janta Sahakari Bank Limited Narmada Jhabua Gramin
Nagaland Rural Bank Langpi Dehangi Rural Bank The Punjab State Co-operative Bank Limited Mizoram Rural Bank
Maharashtra Gramin Bank Uttarakhand State Co-operative Bank Limited Shree Panchganag Nagari Saharkari Bank Limited Madhya Bihar Gramin Bank
Kerala Gramin Bank Kerala State Co-operative Bank Limited Karad Urban Co-operative Bank Limited Karnataka Vikas Grameena Bank
Meghalaya Co-Operative Apex Bank Ltd The Surat People's Cooperative Bank Limited Mizoram Cooperative Apex Bank Limited Sangli Urban Co-Operative Bank Limited
The Goa State Co-Operative Bank Limited Shikshak Sahakari Bank Limited Mehsana Urban Cooperative Bank Limited Sikkim State Co-Operative Bank Limited
Sardar Bhiladwala Pardi People's Co-Operative Bank Limited Nutan Nagarik Sahakari Bank Limited Mahanagar Co-operative Bank Limited Odisha State Cooperative Bank
Kalupur Commercial Co-operative Bank Limited Citizen Credit Co-operative Bank Limited J&K State Cooperative Bank Jharkhand State Co-Operative Bank Limited
Cosmos Co-operative Urban Bank Limited The Nawangar Co-operative Bank Limited Chhattisgarh Rajya Sahakari Bank Maryadit Bombay Mercantile Co-operative Bank Limited
Bihar State Co-operative Bank Limited The Greater Bombay Co-operative Bank Limited Sarvodaya Commercial Co- operative Bank Jalgaon Janata Sahakari Bank Limited
The Bharat Co-operative Bank (Mumbai) Limited Rajkot Nagarik Sahakari Bank Limited The Kalyan Janata Sahakari Bank Limited The West Bengal State Co- operative Bank Limited
The Gujarat State Co-operative Bank Limited Punjab and Maharashtra Co-operative Bank Limited Shri Mahila Sewa Sahakari Bank Limited The Ahmedabad Mercantile Co- operative Bank Limited
Prime Co-operative Bank Limited

List of financial institutions from where home loan schemes can be availed under the Pradhan Mantri Awas Yojana (PMAY) scheme

The following banks and non-banking financial companies offer home loans under the Pradhan Mantri Awas Yojana (PMAY) scheme

KF Housing Finance Private Limited Manipal Housing Finance Syndicate Limited Ummeed Housing Finance Private Limited
Mamata Housing Finance Company Private Limited West End Housing Finance Limited Mahindra Rural Housing Finance Limited
Viva Home Finance Limited Magma Housing Finance Vastu Housing Finance Corporation Limited
LIC Housing Finance Limited USB Housing Finance Corporation Limited L&T Housing Finance Limited
Tata Capital Housing Finance Limited Khush Housing Finance Limited Swarna Pragati Housing Microfinance Private Limited
India Shelter Finance Corporation Limited Swagat Housing Finance Company Limited India Infoline Housing Finance Limited
Supreme Housing Finance Limited India Home Loan Limited Sundaram BNP Paribas Home Finance Limited
India Bulls Housing Finance Limited SRG Housing Finance Limited ICICI Home Finance Company Limited
Shubham Housing Development Finance Company Private Limited Housing Development Finance Corporation Limited Shriram Housing Finance Limited
Housing and Development Corporation Limited SEWA Grih Rin Limited Home First Finance Company Limited
Saral Home Finance Limited Hinduja Housing Finance Limited Sahara Housing Finance Corporation Limited
HBN Housing Finance Limited Repco Home Finance Limited Habitat Microbuild India Housing Finance Company Private Limited
Religare Housing Development Finance Corporation Limited GRUH Finance Limited Reliance Home Finance Limited
GIC Housing Finance Limited RAAS Housing Finance (India) Limited Fullerton Home Finance Company Limited
PNB Housing Finance Limited Fast Track Housing Finance Company Limited Panthoibi Housing Finance Company Limited
Equitas Housing Finance Private Limited Orange City Housing Finance Limited Edelweiss Housing Finance Private Limited
North East Region Housing Finance Limited DMI Housing Finance Pvt. Limited Nivera Home Finance Ltd
DHFL Vyasa Housing Finance Limited New Habitat Housing Finance and Development Limited Dewan Housing Finance Corporation Limited
National Trust Housing Finance Limited Cent Bank Home Finance Limited Muthoot Housing Finance Company Limited
Capri Global Housing Finance Private Limited Muthoot Homefin Limited Capital First Home Finance Limited
Micro Housing Finance Corporation Limited Can Fin Homes Limited Mentor Home Loans India Limited
AU Housing Finance Limited MAS Rural Housing and Mortgage Finance Limited Aspire Home Finance Corporation Limited
Manappuram Home Finance Private Limited Aptus Value Finance Corporation Limited Aditya Birla Housing Finance Limited
Aptus Value Housing Finance India Limited Aadhar Housing Finance Limited Akme Star Housing Finance Limited

The story so far

The affordable housing scheme is gaining popularity as more and more individuals are easily affording a home for themselves both in the rural and urban areas. Under the Rural scheme, for the financial year 2016-17, the Government sanctioned 39 lakh homes out of which 19 lakh homes were constructed. Similarly, during the financial year 2017-18, 24 lakh homes were sanctioned out of which about 7 lakh homes have been constructed. In the urban sector, 39% of the houses which were sanctioned have been built. By the end of March 2019, a total of 79 lakh houses have been sanctioned by the Government but only 16 lakhs were built and 15.25 lakhs were occupied. So, though the numbers are small, the affordable housing scheme still has a long way to go. With the subsidised home loan available under the scheme, lower and middle income individuals can now dream of having their own home.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.