Government of India launched a housing scheme in 2015 to make housing affordable for all, this scheme was called Pradhan Mantri Awas Yojana (PMAY). The scheme mainly aims at proving affordable homes for economically weaker sections (ELS), lower income groups (LIG), urban poor and rural poor by building nearly 20million affordable homes by March 2022. And how does PMAY plans to achieve this aim? There are four main verticals for it:

• Providing credit-linked subsidies t make housing affordable
• Providing grants for beneficiary-led construction of individual houses
• Promoting partnerships between the public and private sector
• Rehabilitation of slum dwellers with the participation of private developers

If you want to apply for Pradhan Mantri AwasYojna here are some details that you must know before applying. The PMAY scheme can be mainly categorised into two components that are PMAY-Rural and PMAY-Urban. It consists of 4 different schemes, that are:

1. In situ slum development – In this scheme, private developers and state government join hands to provide affordable homes to slum dwellers.
2. Credit linked subsidy – Credit linked subsidy for loans borrowed from notified organisations. Economically weaker sections or lower income groups, and middle-income groups can apply to the National Housing Board and Housing and Urban Development Corporation for interest subsidy. Upfront subsidy of 6.5% up to 6 lakhs is available for economically weaker section. Interest subsidy of 4% for loans upto nine lakhs is available for middle income group whereas with income upto 12 lakhs. Interest subsidy of 3% for loans upto 12 lakhs is available for middle income group whereas with income upto 12 to 18 lakhs.
3. Affordable housing in partnership – To make housing more affordable for the economically weaker section and lower income groups, the State Government provides subsidy per flat to the developer. A developer using this subsidy to develop property has to sell 50% of the housing to people from ELS and LIG. The scheme helps to reduce the cost of housing for these sections.
4. Beneficiary led construction – This scheme helps to alter existing houses of people from economically weaker sections. This subsidy can also be used to build a house on their land. The subsidy provided depends on the construction.

How to apply for Pradhan Mantri Awas Yojana?

Here are two ways to apply for PMAY

Online – You can easily apply for PMAY on the official website of Pradhan Mantri Awas Yojana. You will get a form to be filled depending on the type of scheme you apply for. To apply online for PMAY, it is necessary to have an Aadhaar card. Beneficiaries opting for the credit-linked subsidy can approach directly to the listed banks offering home loans. The subsidy gets paid directly to the bank in this scheme which eventually reduces the borrower’s outstanding loan amount.

Offline – You can also apply for PMAY scheme offline by visiting the Common Service Centre (CSC) operated by State Government and filling up a form there. These forms are available at ₹25 plus GST. The PMAY scheme is for the benefit of individuals from certain economic sections, and hence companies or private individuals are not allowed to apply for the same.

If you are comfortable with the online procedure, it is suggested to apply for PMAY scheme online as it saves time is easy.