Everyone has a dream to own his/her own house. But with rising inflation and real estate prices, it has become extremely difficult for individuals from poor section of the society to own their own house. Keeping in mind this situation, Pradhan Mantri Awas Yojana was launched on 25th June 2015 with an objective of providing affordable housing to every Indian by the year 2022. It is on the similar line of Pradhan Mantri Jan Dhan Yojana, wherein every Indian household to have one bank account. Read more on PMJDY here.

Pradhan Mantri Awas Yojana – Online Application

• Online applications has started from November 03, 2016.
• The main objective of this online initiative is to increase the number of online applications.
• Submission of online applications can be done via common service centers.
• These CSCs are located in urban areas
• The cost of application is Rs. 25 only

How to track the status of the application:

Once an individual makes online application, he/she would be given an acknowledgement receipt. Photograph of the individual will be present on the receipt. This receipt will help in tracking the status.

Benefits & Features:

1. Cap on the loan amount is Rs. 6 Lakh provided someone has taken subsidized interest rate.
2. Loan Tenure: 15 years
3. Lower interest rate means less EMI: In the current market, when you apply for a home loan at any bank the interest rate charged is greater than 10%. However interest rate in Pradhan Mantri Awas Yojana would be subsidized at 6.5%. So home loan borrower will save nearly 4%.
4. Granting of subsidy: In addition to lower interest rate; government will grant subsidy in the range of Rs. 1, 00, 000 – Rs. 2, 30, 000 to the borrower. Minimum Rs. 1Lac will be granted.
5. Preference to Female: Application made by women will be given higher preference.
6. Preference for transgender & widows: These often neglected groups will also be given preference
7. More preference to seniors and disabled: Senior people and those who are disabled will be given preference in getting house which is located on the ground floor. The reason for giving preference is because these people often have to stay out of the house.
8. This scheme was earlier named as Housing for All.
9. Construction will be done in a eco friendly manner.

Achievements of PMAY:

• Between 2005-2014: Affordable housing was sanctioned to over 13.50 lakhs urban poor.
• Between 2015-2016: Over 11 Lakh houses have been sanctioned.

Frequently Asked Questions on PMAY:

What would be the interest rate if someone wishes to buy home costing over Rs. 6, 00,000; for e.g. 8 Lakhs?

In this case, borrower will be charged 6.5% for the amount Rs. 6, 00,000. And for the remaining 2, 00, 000; standard interest rate available in the market would be charged.

What would be the interest rate if someone wishes to increase the tenure to 15 years and above?

Market rate would be charged for any period greater than 15 years.

Will the interest rate be lowered if someone wishes to take loan for the tenure 15 years and below?

No. 6.5% interest rate would be charged irrespective of the tenure. Market rate would be charged for any period greater than 15 years.

Which are the other lower interest loan available in the market?

Axis Bank – Asha Home Loans for low income earning individuals.

Prapti Scheme by Tata Capital Housing Finance offering interest at subsidized rate.

Who can apply and get house under PMAY?

• Any individual who falls under the category of Lower Income Group (LIG) and Economically Weaker Section (EWS) can apply for house under PMAY.
• Individuals from Scheduled Caste and Scheduled Tribes
• Indian women of all religion and caste.

When will PMAY complete?

The target to provide housing for all urbanites is 2022. i.e. 7 years is the estimated targeted time frame.

What are the contact numbers for Credit Linked Subsidy Scheme (CLSS)?

Interested individuals can contact below mentioned toll free numbers:
NHB: 1800-11-3377 & 1800-11-3388
HUDCO: 1800-11-6163