Though the claims suggest that the economic-classification of India serves as the sole factor used to lay the foundation for the PMAY scheme, the reality is slightly different. The Pradhan Mantri Awas Yojana (PMAY) has a separate clause for the Indian Rural and the Indian Urban population. The basic concept remains the same: the scheme, be it the PMAY-U or PMAY-G, aims at providing financial assistance to eligible people, helping them own a roof over their head. The contrast arises in terms of the eligibility criteria and the assistance available.
Let’s get into the details of PMAY eligibility in Urban and Rural India to understand the difference better.
The PMAY: Urban is new and was designed very recently before brought into existence in the year 2015. However, the PMAY-Rural, also known as PMAY-Gramin, apart from the newly introduced provisions, has been in existence for a very long time. It was formerly known as Indira Awas Yojana.
The Eligibility Criterion: For the PMAY Urban, the eligible candidates can fill out the application form, register themselves, and then avail the benefits. However, people in the rural areas can’t do the same because the application form isn’t available. The applicants willing to avail the benefits of PMAY-Rural have to approach the Gram Sabha. The Gram Sabha will then choose the beneficiary based on the Socio-Economic Caste Census of 2011. If the candidate's name appears in the list formulated by the local Gram Sabha, then they can avail the benefits.
Read Also: How does Pradhan Mantri Awas Yojana Differ for Urban and Rural India
The Benefits: As per the PMAY-Urban, the maximum subsidy which can be availed is Rs 2.67 lakh. However, as per the latter scheme, the subsidy is capped at Rs. 1.20 lakh in plains and Rs.1.30 lakh in hilly states, difficult areas and IAP districts.
Check the link for more on PMAY-Gramin:
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.