Key Objectives of the Pradhan Mantri Awas Yojana 2024 Funding
Feb 20, 2024
The government has recently revealed its interim budget for the fiscal year 2024-2025, which includes a significant budget allocation of INR 80,671 crores for the Pradhan Mantri Awas Yojana scheme (PMAY). This article aims to provide a detailed overview of the PMAY scheme, its numerous benefits, and eligibility criteria for those interested in availing its benefits.
What is the PMAY Scheme?
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative in India that was started in 2015 to provide homes to all citizens. It offers financial support to those who are unable to afford a house. PMAY focuses on different income groups in urban and rural areas and provides subsidies on home loans, direct financial assistance for building houses, and aid for slum dwellers. The program involves funding from the central and state governments and participation from the private sector.
The announcement of the interim budget for 2024 has set new objectives for the PMAY scheme. Let us know more about this in the following section.
Key Objectives of the Pradhan Mantri Awas Yojana (PMAY) 2024 Funding
With a total allotment of INR 80,671 crores in the interim budget 2024, the PMAY scheme is set to fulfil these key objectives:
- Despite the pandemic, the PMAY Gramin Scheme is nearing the completion of the promised 3 crore houses.
- It also aims to construct an additional 2 crore houses in the next five years.
- The government proposed a new housing scheme for deserving middle class “living in rented houses, slums, or chawls and unauthorised colonies.”
The Pradhan Mantri Awas Yojana aims to provide affordable housing to all Indian citizens in both rural and urban areas. It further seeks to fulfil these objectives:
- Rehabilitation of people from slum areas to puccahouses
- Promotion of affordable housing for weaker sections of society
- It aims to provide subsidies for beneficiary-led construction.
Types of PMAY Scheme
The PMAY Scheme is an umbrella scheme that aims to fulfill the housing needs of both urban and rural areas. Therefore, it has two sections that focus on different areas of operation.
Pradhan Mantri Awas Yojana Gramin (PMAY-G)
PMAY-G, formerly Indira Awas Yojana, renamed in 2016, aims to offer affordable housing in rural India, excluding Chandigarh and Delhi. The plan involves cost-sharing, with the central and state governments splitting expenses. In plain regions, the cost-splitting ratio is 60:40, while in northeastern and hilly areas, it is 90:10.
Pradhan Mantri Awas Yojana Urban (PMAY-U)
The Pradhan Mantri Awas Yojana - Urban (PMAY-U) program aims to provide housing in urban areas in India, covering 4,331 towns and cities. The program operates in phases: Phase 1 (April 2015 - March 2017) covered 100 cities. Phase 2 (April 2017 - March 2019) added 200 cities, and Phase 3, which aims for comprehensive coverage by December 2024, enhances urban housing accessibility.
Key Components of PMAY
The Pradhan Mantri Awas Yojana is the flagship scheme of the Indian government for providing affordable housing. It is also linked to schemes like Swachh Bharat Abhiyan, Ujjawala Yojana, Saubhagya Yojana, etc. This scheme has four components that ensure all citizens have affordable housing in India. Let us discuss more about these four components:
In-Situ Re-development
The Pradhan Mantri Awas Yojana's In-Situ redevelopment program aims to improve living conditions in slum areas. This program collaborates with the private sector to create formal urban settlements for slum dwellers by utilizing valuable land resources. The goal is to provide better housing and infrastructure, offering a dignified living environment for those in need.
Credit Linked Subsidy
This component provides beneficiaries with an interest subsidy of 6.5% per year on their housing loans for 15 years. This helps reduce the burden on people, especially those in lower income groups, by lowering their Equated Monthly Installments (EMI), making it easier to own a home.
Enhancement and Construction of Beneficiary-led House
This particular aspect of the Pradhan Mantri Awas Yojana aims to empower families, particularly those belonging to the Economically Weaker Sections (EWS). Beneficiaries who are not eligible for assistance under other components of the scheme can receive support to either construct new houses or improve their existing ones. Such families receive central assistance of INR 1.50 lakhs under this mission, promoting housing self-sufficiency.
Affordable Housing in Partnership (AHP)
Affordable Housing in Partnership is a collaborative effort between the public and private sectors to address the housing needs of economically weaker sections. States or Union Territories can plan and execute affordable housing projects in partnership with various agencies or industries. The initiative aims to create sustainable solutions by fostering partnerships that provide housing to those in need.
Eligibility of PMAY
1. Income Requirement
| Beneficiary |
Annual Income Range |
Subsidy Provided |
| EWS |
Up to INR 3 lakhs |
6.5% p.a |
| LIG |
From INR 3 lakhs to INR 6 lakhs |
6.5% p.a |
| MIG I |
From INR 6 lakhs to INR 12 lakhs |
4% p.a |
| MIG II |
From INR 12 lakhs to INR 18 lakhs |
3% p.a |
The PMAY scheme benefits families with an annual income of up to INR 18 lakhs. Eligibility is determined based on the total annual income of the household, ensuring that those with lower incomes receive priority assistance in acquiring affordable housing.
2. No Ownership of Permanent House
Individuals seeking to avail themselves of the PMAY scheme must not own a permanent house anywhere in India. This criterion ensures that the scheme's benefits are directed towards those who do not currently possess a residential property, promoting inclusivity and providing opportunities for first-time homeownership.
These two fundamental eligibility criteria target and assist individuals and families needing affordable housing solutions under the Pradhan Mantri Awas Yojana.
Key Benefits of PMAY
1. Subsidies to Individuals Buying Their First Home
For every individual who is buying their first home, the government tries to ease the financial burden by providing a good subsidy on your first home. To avail of the benefits of this scheme, you or your family members should not have an existing house. A crest-linked subsidy is given based on your income.
2. Uplifting the Standard of Living
While many migrate to cities from rural areas, not many can live up to the standards of living in urban areas. The government is trying to close this widening gap by providing affordable housing options to eligible urban dwellers.
3. Making eco-friendly Homes
The Pradhan Mantri Awas Yojana (PMAY) scheme has the additional objective of promoting sustainable housing by constructing homes that are environmentally friendly and utilize eco-friendly materials. This initiative aims to provide affordable housing to eligible beneficiaries and reduce the carbon footprint by promoting green building practices.
4. Women Empowerment
The Pradhan Mantri Awas Yojana (PMAY) scheme offers special preference provisions for salaried women and widows to help them become homeowners. The preference provisions ensure that salaried women and widows are given priority in receiving subsidies and loans to purchase homes under the PMAY scheme.
Conclusion
In conclusion, the Pradhan Mantri Awas Yojana (PMAY) 2024 aims to complete 3 crore houses under PMAY-G and construct an additional 2 crore houses in the next five years. In the 2024 interim budget, the government proposed to launch a new housing scheme for the deserving middle class.
The PMAY strives to provide affordable housing in rural and urban areas, focusing on slum rehabilitation, promoting housing for weaker sections, and offering subsidies for beneficiary-led construction. While the PMAY scheme assists with housing, if you are not eligible under the scheme, you can still apply for home loans. SMFG Grihashakti offers attractive home loans up to INR 1 crore* at reasonable interest rates. You don’t have to make any calls to know your eligibility; just use our free eligibility calculator and apply now!
Please Note:
Government of India/NHB reserves the sole discretion to award benefits under this scheme by assessing the eligibility of beneficiaries. The above contents herein is a brief summary of the related announcement.
FAQ's
Who can apply for PMAY?
PMAY is open to Indian citizens meeting income criteria: Economically Weaker Sections (EWS) with annual income up to INR 18 lakhs. The applicant and/or his family members must not have a pucca house in any part of the country.
Is PMAY only for first-time home buyers?
Yes, PMAY is primarily designed to assist first-time home buyers. The scheme focuses on providing financial aid to eligible beneficiaries seeking to purchase or construct a house for the first time, promoting homeownership among those who have not previously owned a permanent house.
Is there any registration fee for this scheme?
No, there is no registration fee for applying through the online portal under PMAY. However, if you choose to apply offline, a registration fee of INR 25 plus GST is applicable.
What is the maximum loan amount eligible under PMAY?
The maximum loan amounts eligible under PMAY vary by beneficiary category. For the Economically Weaker Section (EWS) and Low Income Group (LIG), it's up to INR. 6 lakhs; for Middle Income Group I (MIG I) up to INR 9 lakhs; and for Middle Income Group II (MIG II), up to INR 12 lakhs.
Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.