In 2015, the Government of India introduced the Pradhan Mantri Awas Yojana with an aim of ‘Housing for All by 2022’. The objective of this scheme was to make housing affordable and accessible to Indians belonging to economically weaker sections. Accordingly, benefits under the scheme are categorised for specified income categories.

Eligible individuals who are planning to purchase a house under PMAY scheme must gather in-depth information about the same to avail the benefits conveniently. It will help them to understand the scheme in detail and avoid any difficulties during the application process.

Components of PMAY

Pradhan Mantri Awas Yojana has 4 major components. These are –

1. In-situ development of slum areas by using land as a resource with assistance from the private sector.
2. Using Credit Link Subsidy Scheme to provide nationwide affordable housing.
3. In a partnership with Private and Public sector players, inexpensive housing will be offered to economically challenged sections of the society.
4. Construction and enhancement of properties led by beneficiaries.

CLSS scheme – The mainstay of PMAY

To understand how PM Awas Yojana works, one must learn about CLSS. This scheme aims to extend financial support to various income groups during house purchase. Initially, it was limited only to the Economically Weaker Section (EWS) and Low Income Group (LIG). Later, in 2017, the benefits were extended to individuals belonging to the Middle Income Group (MIG I and II) as well. Here is a brief outline regarding the eligibility –

• CLSS eligibility for EWS and LIG
• Families with a minimum annual income of Rs.3 lakh and not exceeding Rs.6 lakh are eligible for this group.
• They will receive interest subsidy of up to 6.5% on their home loans.
• Also, the interest subsidy is limited to a maximum loan amount of Rs.6 lakh.
• The carpet area of the property must not exceed 60 sq. mt. that is approximately 645 sq. ft. to avail such benefits.
• CLSS for MIG-1
• Households with an annual income of Rs.6-12 lakh are eligible for this scheme.
• Such families will receive an interest rate subsidy of up to 4% on their borrowings.
• It applies to a maximum loan amount of Rs.9 lakh.
• The carpet area must not exceed 160 sq. mt.
• CLSS for MIG-2
• Families with a yearly income of Rs.12-18 lakh qualify under MIG-2.
• They can avail subsidised interest rates (subsidised for up to 3%).
• Such subsidy is applicable to a maximum loan amount of Rs.12 lakh.
• Carpet areas of their property of choice must not exceed 200 sq. mt. in this case.

PMAY benefits further extend to slum dwellers as well. According to the guidelines, an area where 300 individuals or 60-70 families live in low-quality houses without proper sanitisation and drinking water facilities can apply for this scheme.

Eligibility for benefits under PMAY

Apart from the particular eligibility requirements of different schemes, here are some general requirements that remain a constant –

• Individuals applying for this facility must not own a pucca house.
• Applicants cannot avail this facility if they have received benefits of any other government-backed housing scheme.
• Location of the property should be in the Government-approved areas as per the 2011 Census.
• Female ownership, be it as a co-owner or through standalone ownership, is mandatory to apply for this scheme. Prospective home buyers should also learn about the benefits of purchasing a home in their wife’s name.

How to register for the Pradhan Mantri Awas Yojana?

To avail benefits under this scheme, one needs to complete the PMAY registration first. Here is a step-by-step guide to doing it –

• Login to the PMAY portal.
• Go to the ‘Citizen Assessment’ section and select from the drop-down.
• Provide Aadhaar number and submit.
• It will then redirect to an application form. Individuals need to fill this form providing required details.
• After completion, enter the captcha and save it.

Applicants later need to download their application forms and take print outs while applying for a home loan.

Individuals can then get in touch with concerned financial institutions to avail a loan under PMAY as per the guidelines mentioned above. However, a point to remember here is that if any lender sanctions more than the given amount, benefits under this scheme will not apply to the additional amount.

Apart from this, to simplify the loan application process, reputed lenders have introduced pre-approved offers, which also help save valuable time. These offers apply to financial products like home loans, loans against property, etc. Individuals can check their pre-approved offers by submitting their essential contact details.

Pradhan Mantri Awas Yojana has provided the much-needed financial relief to Indians, enabling them to purchase their selected residential property affordably. However, before applying for this scheme, one must gather ample information they need to know about PMAY and understand how it works in detail to avoid any mistakes.