Pradhan Mantri Awas Yojana Policy- A brief overview

The Pradhan Mantri Awas Yojana (PMAY) policy promotes the idea of ‘housing for all,’ aiming to provide affordable housing solutions in the form of subsidies on home loan interests for Indian citizens.



Here is a brief overview of the PM Awas Yojana discussing some critical elements of the policy.

Sections of PMAY

The PMAY scheme was initially introduced to support the Economically Backward Section (EWS) and Lower Income Group (LIG) of the society.

However, in 2017, the policy was extended to the Middle Income Group (MIG I & II), under the Credit-Linked Subsidy Scheme (CLSS.) This introduced two new subsidies on home loans that can be availed by individuals with a higher annual income.

As a result, PMAY was divided into two sections –
  • PMAY Gramin.
  • PMAY Urban. 
Benefits

PMAY benefits are determined on the annual income of individuals applying for the loan. Such categories include –

EWS & LIG 
  • Income between Rs.3 lakh to Rs.6 lakh p.a.
  • Loan amount Rs.6 lakh; subsidy of 6.5% on EMIs.
MIG-1 
  • Income between Rs.6 lakh to Rs.12 lakh p.a.
  • Loan amount Rs.9 lakh; subsidy of 4% on EMIs.
MIG-II 
  • Income between Rs.12 lakh to Rs.18 lakh p.a.
  • Loan amount Rs.12 lakh, a subsidy of 3% on EMIs.
Online and offline registration 

Individuals with an annual income of less than Rs.50,000 can perform PMAY registration from their official website. Those with an annual income of more than Rs.50,000 have to approach a financial institution in order to register for the scheme.

Availing a loan under PMAYG can offer significant savings in the form of interest payments. Applying for the policy should become more accessible now that you know all about PMAYG.

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