Income Tax Payment Process on Fixed Deposit Interest Income
November 19, 2018
NREGA – National Rural Employment Guarantee Act
November 21, 2018

Pradhan Mantri Awas Yojana

Last Update Date : July 11, 2019
Estimated Read Time: 6 min

PMAY Scheme

Pradhan Mantri Awas Yojana, also known as PMAY, was introduced on 1 June 2015 by Prime Minister Narendra Modi with an initiative aiming to provide affordable houses to the urban poor.

In this guide by H&R Block, we will be discussing the PMAY scheme and how to apply for it.

What is PMAY?

Under the Pradhan Mantri Awas Yojana scheme, affordable houses are built in selected towns and cities using construction methods that are eco-friendly in order to benefit the urban poor population of the country. The plan of the scheme involves around 20 million houses to be built by 31 March 2022 at an affordable price. The Central Government has assisted with USD 31 billion financially.

The scheme is divided into two parts, namely:

  1. Pradhan Mantri Awas Yojana – Urban (PMAY-U)
  2. Pradhan Mantri Awas Yojana – Gramin (PMAY-G)

Objectives of PMAY

The number of urban dwellers in India is increasing by the day, and the count is alarming. It has been estimated that the population in the urban areas of the country will rise to around 814 million people by 2050. The main challenge by the rise in the population will be to provide housing options that one can afford along with sustainable development. Along with providing housing options, the ministry also has to look after implementing proper sanitation and safer environment for the rising population.

Keeping these things in mind, the government has the following objectives for introducing the Pradhan Mantri Awas Yojana scheme:

  1. Providing affordable household to all the people by 2022.
  2. To make the demographics easily accessible which are specific like the women, minorities and economically challenged groups undertaking the scheme.
  3. Directly associating itself with the demographics that are ignored the most.
  4. Providing special preferences to the differently abled people as well as senior citizens for occupying the ground floor properties.
  5. Including strict beneficiary names to be wives or mothers while mandatorily registering for availing the scheme benefits.

Features of PMAY

Pradhan Mantri Awas Yojana has some important features that make it stand out from any other housing scheme.

  1. The interest rate on the subsidy is provided at 6.5% on housing loan for a 15 years’ term to all the beneficiaries under the PMAY scheme.
  2. Preference of allocation on the ground floor will be given to senior citizens and differently able individuals.
  3. Technologies used for the construction will be eco-friendly and sustainable.
  4. The entire urban areas in the country will be covered in this scheme that includes 4041 statutory towns. The project will be done in 3 phases where priority will be given to 500 Class I cities.
  5. The credit linked subsidy aspect of the PMAY is implemented from the initial stages in all statutory towns in India.

Eligibility Criteria

The list of beneficiaries for the PMAY scheme will be retrieved by the government from the Socio Economic and Caste Census (SECC). Consultation of the beneficiaries before making the final list under the rural housing scheme will be made with the help of village panchayats and tehsils. This process is to be followed for ensuring transparency in the project and making sure that only the deserving individuals receive the help in housing.

If you want to apply for the PM Awas Yojana scheme, you are required to have an annual income of Rs 6 lakh to Rs 18 lakh. You can include the annual income of your spouse while applying for the PMAY scheme.
The criteria for applying under this scheme are as follows:

  1. Women who are Indian citizens can apply.
  2. For enjoying the yojana benefits, you, as a beneficiary, can buy only one house. If you have a house already, you cannot apply for a house under this scheme.
  3. If you have a house that is already built, you cannot avail this scheme. Only a new house is to be acquired or constructed.
  4. People belonging to LIG and economically weaker sections can also apply.
  5. People belonging to the scheduled castes and tribes may also apply.
  6. Special priorities will be given to differently abled and senior citizens for ground floor housing.

It is important for you to make sure that you have checked your name, as well as your eligibility, is present in the list of beneficiaries before filling the PMAY scheme application form.

For checking your eligibility, you can submit your BPL certificates to the lending institution. The institution will notify you about your eligibility for applying under the scheme. You can also check the beneficiary list on the official website of PMAY.

How to apply for PMAY?

The process for applying under the scheme online is very convenient, simple and time-saving. You can follow the steps mentioned below for the PMAY scheme online application process.

  1. Visit the official website of Pradhan Mantri Awas Yojana (1)
  2. Click on the ‘Citizen Assessment’ option from the menu
  3. Enter your Aadhaar number and the name as per Aadhaar
  4. As soon as you click on the ‘Check’ button, you will be redirected to the application page
  5. Enter your personal and income details, bank account details and current residential address and all the other information in the application
  6. Click on the ‘I am aware of’ option present at the end of the page and then click on the ‘Save’ button
  7. You will now see an application number generated by the system which you are required to save for future reference
  8. Download and print the duly-filled application form and submit it at the nearest CSC office centres and financial institutions along with the relevant documents.

How to Edit Details after Submission?

If you realise that you have made mistakes while submitting the form, you can edit it and then submit it again. The process of editing the details after submission is as follows:

  1. Visit the official PMAY website
  2. Enter your Aadhaar details and application reference number
  3. Click on the ‘Edit option.’
  4. You will be redirected to a page where you can edit the application details

People Also Ask

Q. Can I apply for this scheme if I am a woman?

A. Yes, if you are a woman who is running the family belonging to the lower income groups, you will be given priority to apply for this scheme. However, if any of your family members have already applied for the PMAY scheme, your application will be rejected.

Q. How long will the Pradhan Mantri Awas Yojana last?

A. The project is open till 2022. However, this is only the date where the beneficiaries can avail the scheme. The construction and moving process might take a longer time.

Q. Will the eco-friendly and sustainable technologies make the housing even more expensive?

A. This step isn’t taken to make the ultimate housing price expensive. It is being put in place so that the environment is left unharmed and the people, in the near future, do not perish to the environmental haphazard.

Q. Will there be enough labourers to ensure that the houses are constructed effectively in the rural area?

A. The Mahatma Gandhi National Rural Employment Guarantee Act will help the government to provide opportunities to people to work as labourers for constructing homes under the Pradhan Mantri Awas Yojana scheme in the rural areas.

Q. Who all are eligible to apply for this scheme?

A. Anybody who belongs to the economically weaker section of society and doesn’t own a pucca house.

Q. Can non-resident Indians avail this scheme?

A. Yes, they can avail the scheme.

Q. I do not have an Aadhaar card. Can I still apply for this scheme?

A. For applying online, you are required to mandatorily have an Aadhaar card. If you do not have an Aadhaar card, make sure you get it made from the nearest Common Service Center at the earliest.

How H&R Block can help you?

Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. We have a team of in-house tax experts who can file your tax return accurately while giving you maximum tax benefits.

Leave a Rating!
5.0 (2 Votes)
CA Madhuri Marne
Madhuri is a tax expert at H&R Block (India) with over a decade of professional experience. Having co-authored a book on economics for the ICAI exam, she now enjoys writing about tax-related topics in a simple and easy manner. Outside of work, Madhuri is passionate about teaching students who are appearing for professional exams.

Still Have Questions?