According to estimates, urbanisation in India was expected to touch 36% by 2020, thereby marking a growth of about 5% over the previous 9 years. This rapid growth in urbanisation being witnessed over the past few decades has caused a serious crisis in housing facilities across the country. This crisis ultimately led to the creation of a wide gap in housing demand and supply.
In order to boost housing supplies, there was a requirement for a suitable policy. Thus, in an attempt to bridge this widening gap in the housing sector, several policies were implemented by the Central and State governments. But these schemes eventually led to limitations in benefits for the economically challenged sections of the society. In June 2015, however, the Indian government launched the PMAY Urban and Gramin scheme with a mission to provide housing to everyone by 2022.
An introduction to PMAY
According to the areas that this scheme caters to, it is divided into two parts, namely PMAY Urban and PMAY Gramin. The PMAY Urban aims at addressing the housing requirements of the economically backward sections hailing from the urban areas.
There are several factors that are considered to determine an individual’s PMAY eligibility. To confirm whether one is eligible or not, he/she can check the PMAY eligibility criteria.
Guidelines of the PMAY Urban scheme
The PMAY Urban scheme comes with several guidelines, as mentioned below –
- A beneficiary must not have availed assistance from any other government housing scheme.
- None of the members of the beneficiary’s family should have a pucca house under their name in any region in India.
- A single house under single or joint ownership is applicable for married couples.
- The Aadhaar numbers of the beneficiary’s family members must be furnished while applying for a home loan under PMAY.
- The adult earning members will be considered as a separate household if they are not the owners of a pucca house in any region of India, irrespective of their marital status.
Features of PMAY Urban scheme
- The loan tenor applicable to purchase any of the affordable houses under this scheme is a maximum of 20 years.
- The buildings are to be constructed using eco-friendly materials and technologies.
- Priority would be given to differently-abled individuals and senior citizens for ground floor housing.
- An interest rate subsidy of 6.5% on home loans can be availed by beneficiaries depending on their income slab.
- An individual can acquire a loan either for the purchase of a resale house or for house construction.
Progress report of PMAY Urban scheme
After its implementation, the PMAY Urban scheme has accordingly presented striking results. The progress report of this scheme till the 5th of April 2021 has been summarised as follows:
- Total investment of Rs.7.16 lakh crore.
- Release of Rs.93433 crore central assistance.
- A commitment of Rs.1.8 lakh crore central assistance.
- Sanctioning of 111.03 lakh houses.
- Grounding of 77.15 lakh houses.
- Completion of 45.01 lakh houses.
There are many key benefits of Pradhan Mantri Awas Yojana that can be enjoyed by eligible individuals. The names of selected applicants are published in the PMAY list. Individuals who fail to qualify for the benefits offered under the scheme can alternatively opt for housing credits extended by various HFCs across India.
These loans are affordable, convenient to avail and come with a host of benefits.
Financial institutions also provide pre-approved offers against these loans that help in simplifying and accelerating the lending process. These offers are provided on various financial products like home loans, loan against property and more. Borrowers can check their pre-approved offer by providing a few details such as name and contact number.
Therefore, individuals who are not qualified to avail the PMAY Urban scheme benefits can still become homeowners by opting for external financing through home loans.
