Launched back in 2015 to provide affordable housing for all by March 2022, the Pradhan Mantri Awas Yojana or PMAY is rapidly advancing towards this goal. The central scheme is divided into two major segments – one that takes care of the housing for the urban poor, and the other that focuses on rural housing needs. However, that is not the sole difference between the two parts of the scheme.
Let us find out how the Gramin and Urban aspects of the scheme differ from each other.
Programme verticals for each
The urban aspect addresses the housing needs of urban people, including slum dwellers, via the following four programme verticals –
- In-situ rehabilitation of slum dwellers where land is used as a resource
- Affordable housing under the PPP (Private Public Partnership) model
- Home loan subsidy for individual house construction by the beneficiary
- CLSS or Credit Linked Subsidy Scheme for the economically weaker sections
However, the scheme’s rural aspect includes a single programme vertical to provide the rural poor (homeless and those living in dilapidated homes) with pucca houses having all basic amenities.
Eligibility criteria and beneficiaries
The following eligibility criteria apply for the urban beneficiaries –
- Must not own a pucca house anywhere in the country
- Must belong to any of the prescribed beneficiary categories
- Must not have availed central assistance via any other housing scheme
For the Gramin segment, eligible beneficiaries are chosen based on the information available in the latest Socio-Economic and Caste Census, 2011 (SECC 2011). This census lists all households that have previously availed central assistance under PM Rural Awas Yojana or were disqualified for valid reasons. The Gram Sabha publishesthe final list each year.
Under the Pradhan Mantri Awas Yojana – Urban, a beneficiary may avail of the following financial assistance –
- A grant of Rs. 1 lakh admissible for slum rehabilitation under the in-situ development vertical
- Financial assistance of up to Rs. 1.5 lakhs for EWS families under the PPP model
- Interest subsidy on home loans availed under the CLSS
- Financial assistance of up to Rs. 1.5 lakhs for those EWS families unable to avail benefits under any of the other three verticals
Under the Gramin aspect of the scheme, beneficiaries can receive –
- Financial assistance of up to Rs. 1.2 lakhs for homes constructed in plain areas
- Financial assistance of up to Rs. 1.3 lakhs for homes constructed in hilly areas, rough terrains, and backward districts
- Home loan interest ratessubsidies offered for principal amounts up to Rs. 6 lakhs
The application process is also different for each. While applicants can apply for the Pradhan Mantri Awas Yojana – Urban online or offline, no such provisions are available for the PMAY– Gramin wherein the Gram Sabha finalises the beneficiaries on a priority basis.
You can purchase your dream home with Pradhan Mantri Awas Yojna. However, get a housing loan from a reputed lender and use a home loan EMI calculator to determine your repayment capacity beforehand.
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