Pradhan Mantri Awas Yojana: Key Rules, Subsidy Details, and Housing Targets

Key Highlights

• PMAY provides subsidies for affordable housing to eligible beneficiaries.
• Only one subsidy per family is allowed.
• Incomplete house construction may result in subsidy recovery.
• Timely loan installment payments are mandatory.
• House usage certificate must be submitted within 12 to 36 months.

The Pradhan Mantri Awas Yojana (PMAY) is a popular government scheme aimed at providing affordable housing to the needy. The scheme offers financial assistance in the form of a subsidy to help beneficiaries build or purchase their own homes. Currently, the second phase of the scheme, known as Pradhan Mantri Awas Yojana 2.0, was launched on 9 August 2024, following the success of the first phase.

However, beneficiaries need to follow specific rules. Failure to comply with these rules may result in the subsidy amount being recovered by the government.

Also Read: 70,000 Families to Get Homes Under Pradhan Mantri Awas Yojana Gramin

Housing Targets Under PMAY 2.0

The government has set a target to build 3 crore houses across India under PMAY 2.0. This includes:

• 2 crore houses under PMAY Gramin (rural areas)
• 1 crore houses under PMAY Urban (urban areas)

The rural housing scheme has been extended till 2028-29, ensuring that more people can benefit from the scheme.

How Much Subsidy is Provided?

Under PM Awas Yojana Gramin, the government provides:

• ₹1.20 lakh subsidy for people in plains
• ₹1.30 lakh for people in hilly areas

For PM Awas Yojana Urban, beneficiaries receive a credit-linked subsidy of up to ₹2.67 lakh, which is directly transferred to their bank account. This reduces the interest on home loans, lowering monthly installments.

Important Rules to Keep in Mind

1. Single Subsidy Per Family: A family (husband, wife, and unmarried children) can receive only one subsidy under PMAY.
2. No Pucca House: The applicant should not own a Pucca house in their name.
3. No Previous Housing Scheme Benefits: If the applicant has already received assistance under another housing scheme, they are not eligible for the PMAY subsidy.

Also Read: PM Kisan 18th Installment Not Received? Steps to Resolve Issues

Situations Where You Might Have to Return the Subsidy

1. Incomplete House Construction: If you receive a subsidy but fail to complete house construction, the government may recover the subsidy. In many cases, beneficiaries receive the subsidy but don’t start construction, leading to government action. For example, in Madhya Pradesh, 30,000 beneficiaries faced recovery notices for failing to construct houses after receiving their first installment.
2. Failure to Pay Loan Installments: - If a beneficiary fails to pay their bank loan installments on time, the loan is considered a Non-Performing Asset (NPA), and the subsidy may be revoked.
3. Not Submitting House Usage Certificate: After receiving the first installment of the loan, the beneficiary must submit a House Usage Certificate within 12 to 36 months. Failure to do so can result in the subsidy being taken back by the government.

Loan Amount and Subsidy Under PMAY

Beneficiaries can avail of a loan of up to ₹50 lakh for a maximum period of 20 years. The interest subsidy depends on the income group:

• EWS/LIG: Up to ₹6 lakh loan at 6.5% interest subsidy
• MIG-1: Up to ₹9 lakh loan at 4% interest subsidy
• MIG-2: Up to ₹12 lakh loan at 3% interest subsidy

Loans above this amount do not qualify for a subsidy, and beneficiaries must repay them at the bank’s regular home loan interest rate.

Also Read: Rajasthan Government Offers Gypsum Subsidy for Farmers: Boost Crop Yields Now

CMV360 Says

Beneficiaries of the Pradhan Mantri Awas Yojana should ensure they follow the rules to avoid having to return the subsidy. Completing house construction, paying bank installments on time, and submitting the necessary certificates are essential to continue enjoying the benefits of the scheme. By following these guidelines, you can fulfill your dream of owning an affordable home.