PMAY is a flagship programme initiated by the Indian Government in 2015. This mission aims to provide affordable housing for the Economically Weaker Section (EWS), Middle Income Group (MIG I-II), and Lower Income Group (LIG) of the Indian society. The Pradhan Mantri Awas Yojana targets to construct 20 million houses by 2022.
Therefore, before applying for this scheme, individuals should be aware of its application process and other details to avoid any rejection.
Application procedure and documents
If you are eligible for this scheme, you can apply for Pradhan Mantri Awas Yojana online and offline.
Online-
Applicants need to visit the website of PMAY and get their Aadhaar card verified. After verification, one needs to enter personal details and click on ‘Save’ option. Once completing the application procedure, an auto-generated application no. will be displayed, and it should be saved for future references.
Offline-
Applicants need to visit the nearest Common Service centre to get an application form. Submitting the application form along with a fee of Rs.25 plus GST will complete the process.
Following are the few documents applicants are required to furnish during this process –
- KYC documents
- Address proof
- Property documents
- Income proof
- A declaration mentioning that applicant has no pucca house
Thus, if borrowers are willing to apply for PMAY, they must know the eligibility criteria for a hassle-free experience.
Eligibility parameters of Pradhan Mantri Awas Yojana
Like every other government scheme in India, this programme also comes up with certain eligibility parameters that applicants need to meet to avail its benefits –
- An individual with a yearly household income of up to Rs.18 lakh is eligible for this scheme. The yearly income of a spouse can also be included during application.
- An applicant or his/her immediate family members must not have a registered pucca house in their name in any part of India.
- The property in question must be within the statutory towns as per the 2011 Census.
- Applicants and their family must not have received a benefit from any other government-backed housing schemes.
Meeting these eligibility parameters will make individuals eligible for this affordable housing scheme. At the same time, they should also learn about the components of this plan before applying.
Components of PMAY
Following are the major components of PMAY scheme-
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Credit-Linked Subsidy Scheme (CLSS)
Under this scheme, Indian government will provide a subsidised interest rate on home loan or a maximum repayment tenor of 20 years. Here, lenders will directly transfer the subsidised interest amount to a beneficiaries’ account, leading to reduced EMI and loan amount. This is how a credit-linked subsidy works or CLSS works.
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Affordable housing partnership (AHP)
The government will provide affordable housing to the economically backward section of society in collaboration with Public and Private sectors organisations.
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In-situ slum redevelopment
This particular component aims to refurbish slums with land as a resource, in association with private organisations to provide houses to the families residing in such areas.
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Improvement and construction of beneficiary led house
As per this component, beneficiaries who cannot avail the advantages of the three components will benefit through this. Under this component of Pradhan Mantri Awas Yojana, families will get financial assistance of Rs.1.50 lakh from central government to improve their existing houses or build a new one.
After completing the application for PMAY, individuals can approach any lender for a home loan under this scheme. Besides the eligibility and documentation of this scheme, homebuyers need to meet respective financial institution’s eligibility parameters and submit necessary papers.
On the other hand, they can avoid this hassle with pre-approved offers. These offers streamlines the loan application process and are available on various secured and unsecured financial products. Individuals can now check their pre-approved offers online.
Pradhan Mantri Awas Yojana played a pivotal role in providing affordable houses to the backward section of society. Hence, it has eased the way of becoming a homeowner.
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