Implemented in the year 2015, the Pradhan Mantri Awas Yojana or the PMAY scheme is a Credit Linked Subsidy Scheme (CLSS) initiated by the Central Government to provide affordable housing opportunities to all citizens. The programme aims at the construction of two million ‘pucca’ houses with basic amenities by the year 2022.
Following are the significant features of the Pradhan Mantri Yojana –
Housing for All Strata
The primary purpose for which the Pradhan Mantri Awas Yojana was launched is to provide ‘affordable housing to all’ members of the society – urban (PMAY-U) or rural (PMAY-G). All homes constructed under this scheme are to be replete with basic civic infrastructure such as water, sanitation, electricity, gas, sewerage, etc. The benefits of PMAY scheme are available to those who meet the Pradhan Mantri Awas Yojana eligibility criteria and belong to the specified income categories – EWS (Economically Weaker Section), LIG (Low Income Group), MIG I (Middle Income Group I), and MIG II (Middle Income Group II).
Perhaps, the most crucial feature of the PMAY scheme is the Credit Linked Subsidy Scheme (CLSS), wherein the Government has provided the eligible with PMAY subsidy on their home loans. Meaning, interest on home loans taken under the Pradhan Mantri Yojana will be charged at subsidised rates (depending upon the beneficiary category).
PMAY subsidy will be credited upfront to the principal loan amount, leading to lower EMIs (Equal Monthly Instalments).
Provision for Female Members
The PMAY scheme encourages female members of the society to apply for home loans and become homeowners. For instance – The scheme makes it mandatory for a female member of a household to be a co-owner of the property. Say, a married man has to mandatorily have his wife as a co-applicant for the home loan, even if she plays no role in financing the purchase. The aim is to secure the financial future of the female members, especially those who are elderly or widows.
Only in the absence of any female member can the property be registered solely in the name of a male.
Provision for Special Members of the Society
The Pradhan Mantri Awas Yojana makes it compulsory for preference to be given to senior citizens and the differently-abled members of the society. Meaning, such individuals are to be allotted ground floor homes for their comfort and convenience. Moreover, provisions are available for other minority groups such as the Scheduled Caste (SC), Scheduled Tribe (ST), the transgender community, etc.
Compliance with Eco-Friendly Norms
According to the Pradhan Mantri Yojana, property developers and builders are required to construct houses using eco-friendly construction materials and technology. This is done to ensure minimal damage to the environment and in and around the construction site. Moreover, the use of good-quality, sustainable materials will also eliminate the need for future renovation and remodelling.
The Pradhan Mantri Awas Yojana has been a success so far, both in the urban as well as the rural areas. You can also apply for a home loan under the PMAY scheme once you are sure of your eligibility for the same.