Understanding the Difference Between PMAY Gramin and PMAY Urban

Pradhan Mantri Awas Yojana is an initiative by the Government of India to provide citizens with access to finances and affordable housing. This scheme was launched in the year 2015 with a mission to assist the general populace elevate their living standards with proper housing facilities as well as basic amenities, such as water, 24-hour electricity, food, proper sanitation being the other.

This PMAY scheme is for the beneficiaries of those sections of the society whose annual income falls under the rank of Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG). This scheme is also categorised into two categories – PMAY Rural and PMAY Urban.

The objective of the PMAY scheme Rural is to provide accessibility to citizens of India from the underdeveloped areas and income gradients with easier access to finances such as home loans to purchase residential properties.

With increasing urban population, every city is witnessing an exponential growth of slum dwellers. According to the reports issued by the Times of India, around 17% of urban citizens in India dwell in slums. To uproot this menace the government of India has introduced the PMAY scheme urban to provide housing requirements to the slum inhabitants of metropolitan cities.

Although the primary objective of the scheme is to provide housing for all, the two components of this scheme differ on a great deal based on certain aspects. The significant differences are discussed below –

  • ●       Application process – In order to avail the benefits of PMAY scheme Urban, an eligible individual can apply online or offline. The candidate will be selected for the mentioned scheme if and only if he meets the eligibility criteria.

While the registration process of PMAY Rural is entirely offline, where the selection of the candidate and the beneficiaries of the scheme is approved by the Gram Sabha.

If you are an eligible applicant, you can apply for a PMAY Home Loan as per your eligibility from lenders against minimal documentation and enjoy multiple other borrower-friendly terms.

  • Financial reinforcement – The financial aid provided by the government for the construction of houses under the PMAY Urban is divided on specific grounds. Citizens who fall under the EWS are entitled to benefit from a financial coverage of up to Rs. 1 Lakh to construct their own residential properties.

EWS and LIG are titled to enjoy subsidy on interest rates with maximum loan tenor. While candidates under PMAY scheme rural can avail financial assistance of up to Rs. 1.2 Lakh to construct houses at plain areas. The government will provide financial support for up to Rs. 1.3 Lakh for construction of houses over difficult and steep terrains. Applicants will also obtain assistance of Rs. 12,000 for construction of toilets, to ensure proper sanitation.

They enjoy greater subsidy on interest rate i.e. 6% for a loan amount up to Rs. 6 Lakh.

  • Eligibility criteria and benefits – The PMAY eligibility of the two categories differs on several grounds. The candidates who fall under EWS, LIG, MIG are entitled to enjoy the beneficiaries provided by the PMAY-U. It is vital to know how urban residents can buy a house under PMAY. This scheme offers coverage based on the applicants’ annual income. While for the candidates applying for PMAY-R, the beneficiaries of the scheme is decided by the data drafted by the national census. The Gram Sabha then releases a list that contains the names of the applicants who are entitled to the beneficiaries affirmed by the PMAY scheme.

The Pradhan Mantri Awas Yojana is thus a philanthropic step, initiated by the Government of India to facilitate basic housing for Indian citizens for all who are devoid of this basic requirement.

Eligible individuals can avail Home Loans from various financial institutions that offers exciting home loan benefits with reduced interest rates on applying the PMAY scheme. The home loan interest rates are lessened by up to 6.93% that amounts to a saving of around Rs. 2.97 lakh on interest. Implementing PMAY scheme to obtain pre-approved loans like home loans have made the construction of one’s own home an achievable dream. Know the key benefits of the PMAY scheme and make the best of them as per your eligibility.