PMAY – Pradhan Mantri Awas Yojana – Housing for All Scheme
The Housing for All 2022 scheme that was launched previously has now been renamed as Pradhan Mantri Awas Yojana (PMAY). PMAY was launched on 25th June 2015. The scheme which has been launched by the Prime Minister of India Narendra Modi aims to build and provide around 2 crore houses within a span of 7 years from now throughout the country.
The target population of this scheme is no one else but the weaker sections of society and those belonging to Low Income Group and EWS categories. In this article, we would provide you a detailed information about the scheme comprising everything that you would want to know about it.
Phases of Pradhan Mantri Awas Yojana
The seven years long scheme would not be launched in just one go. For proper implementation and evaluation of the scheme, it has been divided into three phases as listed below:
Phase 1: the first phase of Pradhan Mantri Awas Yojana would start in April 2015 and would conclude in the year 2017. Under this phase, a total of 100 cities would be covered in all.
Phase 2: under the second phase, a total of 200 more cities would be covered and this phase would span from the year 2017 to year 2019.
Phase 3: under the third and final phase of Pradhan Mantri Awas Yojana, the remaining cities under the scheme would be covered and this phase would span from year 2019 to the year 2022.
The Pradhan Mantri Awas Yojana is targeting specific sections of populations and would comprise of the following:
- Economically Weaker Sections (EWS)
- People from Scheduled Tribes
- People from Scheduled Castes
The government at the center would provide a direct subsidy to these beneficiaries in order to help them buy a home for themselves. The amount of subsidy would range from Rs 1 lakh to Rs 2.5 lakh.
Features of PMAY
- The subsidy to these sections of society would be provided for a span of 15 years and the subsidy amount would be 6.5 per cent of the housing loan of the individual
- The scheme aims to empower women by putting them at the forefront of owning the house. This is why, any applicant buying house under the scheme would have to mention the name of either his wife or his mother. The houses would be allotted only to the female head of the family or it could be allotted jointly with female head of the family being one of the allottees.
- Ground floors in any housing society under the scheme would be preferably allotted to the senior citizen applicants
- The technology used for development of housing societies under PMAY would be sustainable and eco friendly
Rate of Interest, EMI Calculation and Subsidy
The EMI paid under PMAY would get reduced to a significant level with the subsidy provided by the government under this scheme. Let’s take an illustration here to understand how this scheme would benefit the target population.
The current rate of interest for home loans is 10.50 per cent. If someone takes a home loan of 6 lakh for 15 years, the EMI should ideally be Rs 6,632 as per current rate of interest. However, due to the 6.5 per cent subsidy provided under the scheme, the EMI that the target population would have to pay would just be Rs 4,050. We can see here that the minimum benefit an individual is getting under this scheme is at least Rs 2,000 per month on a loan of Rs 6 lakh.
Other features of the scheme makes it look somewhat like this:
- Component 1: The government at the center would provide a minimum subsidy of Rs 1 lakh to the beneficiaries
- Component 2: The aforementioned subsidy of 6.5 per cent to the beneficiaries would be provided through credit linked subsidy scheme
- Component 3: An assistance of Rs 1.5 lakh would be provided to each eligible poor living in urban establishments in order to either build a new house or make necessary improvements within their existing houses.
How to apply
Since the scheme has recently been launched, not much information is provided on how to apply for this scheme. We however are quite certain that the forms and necessary information pertaining to application under the scheme would be launched soon on the official website of the scheme. You can keep checking our website for latest updates on this scheme.
Last but not the least, the scheme is implementable across every states and union territories of India and it is just a matter of time that Indian would have no slums in their cities and its citizens would have access to world class facilities.