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How does Pradhan Mantri Awas Yojana Differ for Urban and Rural India

  By : , New Delhi, India       9.8.2018         Phone:9716171569          Mail Now

Pradhan Mantri Awas Yojana was launched with an aim to provide affordable housing to every citizen of India. As not everyone, especially the economically weaker sections of society can fund the purchase or construction of a house, this scheme focuses on providing affordable pucca houses to those living both in the urban and rural areas. This scheme is divided into two components:

Pradhan Mantri Awas Yojana (Urban - PMAY-U)
Pradhan Mantri Awas Yojana (Rural or Gramin - PMAY-G)

Under this scheme, the government is planning to accomplish the goal of constructing 22 million affordable housing for all equipped with in-built water and electricity supply along with proper sanitation facilities by 2022. As a step towards that, the government is offering Credit-Linked subsidies on your home loan and a gamut of benefits in terms of the property you purchase.

So, you can get a home loan from your preferred lender at subsidised interest to make your home purchase a pocket-friendly experience. To add more convenience to your borrowing experience, apply for the loan with NFBCs such as Bajaj Finserv. Here, by taking a Home Loan under the Pradhan Mantri Awas Yojana, you can not only enjoy the interest subsidy, but also gain from nominal interest rates, a 3-EMI holiday, and Flexi Hybrid facilities that allow you to avail a principal holiday for up to 4 years.

Here is how PMAY -U and PMAY -G differs from each other based on Pradhan Mantri Awas Yojana eligibility criteria and subsidy.

Beneficiary and Income Eligibility

The beneficiaries under the PMAY-U are divided based on their household annual income into 3 broader groups: Economically Weaker Sections, Low Income Group (LIG) and Middle Income Groups (MIG).
• To qualify for the Economically Weaker Section category (EWS) or Lower Income Group category (LIG) your annual household income should be between Rs.3-6 lakh.
• To qualify for Middle Income Group, I category (MIG I) your annual household income should be between Rs.6-12 lakh.
• To qualify for Middle Income Group II category (MIG II) your annual household income should be between Rs.12-18 lakh.
Under PMAY-G, the Gram Sabha chooses beneficiaries based on the Socio Economic Caste Census of 2011. If your name appears in the list formulated by your local Gram Sabha, then you are eligible for this scheme.

Apart from these basic eligibility norms, special preference is given to women, transgenders, senior citizens, the disabled, and people from the weaker sections of the society.

How to Apply
You can easily apply online or offline for PMAY. To apply offline, you can visit your nearest Common Service Centre (CSC) with your Aadhar card and photograph. Once at the centre, pay Rs.25 to retrieve a form, fill up the application form and submit it. To apply online, you can go to the official website of PMAY,, verify your identity using your Aadhaar number and then fill all the necessary details and submit your application form.

Other Features
You can apply for PMAY and claim subsidies on your Home Loan even if you use the funds for the purpose of construction or renovation. Under PMAY-U, the MIG category individuals are excluded of this feature. This means that if you belong to this income group then you can only claim subsidy for your home’s purchase. Apart from that, the subsidy claim tenor is fixed up to 20 years of the home loan tenor for both PMAY-U and PMAY-G. Moreover the subsidy claim percentage differs for different groups and is as follows.

Subsidy for PMAY-U
EWS and LIG category is allowed a Credit-Linked subsidy of 6.5% on a home loan of up to Rs.6 lakh.
MIG I category is allowed a Credit-Linked subsidy of 4% on a home loan of up to Rs.9 lakh.
MIG II category is allowed a Credit-Linked subsidy 3% on a home loan of up to Rs.12 lakh.

Subsidy for PMAY-G
A Credit-Linked subsidy of 3% on a home loan of up to Rs.2 lakh, taken for construction or renovation.

With the PMAY scheme, you can easily afford a home to give a proper shelter to your family irrespective of your financial standing. So, start your journey to become a homeowner in no time.

TAGS: Pradhan Mantri Awas Yojana,   Features of PMAY,   How to apply for Pradhan Mantri Awas Yojana,   Eligibility for PMAY home loan,  

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