Urban vs Gramin: How Are the Two Pradhan Mantri Awas Yojana Schemes Different?

The PMAY scheme by the central government is classified into two categories- PMAY Urban (U) and PMAY Gramin (G). Check out this post to understand the differences between the two schemes.

The central government launched the Pradhan Mantri Awas Yojana (PMAY) scheme in 2015 to achieve its “Housing for All” by 2022 objective. Under this scheme, the government aims to provide more than 20 million pucca houses with all the basic amenities to eligible beneficiaries by 2022.

The PMAY scheme is classified into two categories- PMAY Urban (U) and PMAY Gramin (G). While the ultimate goal of the scheme is to make housing affordable for the poor, there are some significant differences between these categories. Take a look-

1. Verticals of PMAY (U) and PMAY (G)

PMAY (U) aims to help the urban poor, including slum dwellers, realize their home ownership dream. This category focuses on these four verticals-

• Affordable housing under the PPP (Public-Private Partnership) model
• In-situ rehabilitation of slum dwellers
• Providing subsidy for house construction/enhancement
• CLSS (Credit-Linked Subsidy Scheme) for EWS (Economically Weaker Sections)

PMAY (G), on the other hand, has a single vertical- providing pucca houses to the rural poor. People from the rural parts of the country who are homeless or live in dilapidated or kucha houses are helped under PMAY (G).

2. Eligibility Criteria

Even the eligibility criteria significantly vary between PMAY (U) and PMAY (G). The PMAY (U) extends to-

• Economically Weaker Section (EWS)- income up to Rs. 3,00,000 lakhs in a year
• Lower Income Group (LIG)- income between Rs. 3,00,001 to Rs. 6,00,000 in a year
• Middle Income Group I (MIG-1)- Annual income between Rs. 6,00,001 to Rs. 12,00,000
• Middle Income Group II (MIG-2)- Annual income between Rs. 12,00,001 to Rs. 18,00,000

For PMAY (G), the beneficiaries are selected by the respective Gram Sabha. Unlike PMAY (U), there are no set eligibility criteria based on which the beneficiaries can confirm their eligibility. If a beneficiary’s name is in the list released by their Gram Sabha, he/she is eligible for the benefits.

3. Fund Allocation and CLSS

Just like the verticals and eligibility, even the assistance under Pradhan Mantri Awas Yojana varies between PMAY (U) and PMAY (G).

PMAY (U) offers the following benefits-

• Slum rehabilitation grant of up to Rs. 1,00,000 for Economical Weaker Section
• Financial assistance of up to Rs. 1,50,000 lakhs under the PPP model for EWS beneficiaries
• Under CLSS, EWS, LIG, and MIG beneficiaries can apply for home loans at subsidised interest rates. However, the maximum loan amount on which this subsidised interest rate would be applicable is capped in all the categories.
• EWS beneficiaries who cannot take advantage of the above benefits are provided financial assistance of up to Rs. 1,50,000 lakhs for construction/enhancement of pucca house

PMAY (G) offers the following benefits-

• Financial assistance of up to Rs. 1.2 lakhs for construction of a pucca home in plain areas and up to Rs. 1.3 lakhs for construction of a pucca home in difficult to access areas
• Additional assistance of up to Rs. 12,000 for construction of toilet
• Interest subsidy for loans of up to Rs. 6 lakhs
• Additional 3% concession on the interest rate if the total loan amount is up to Rs. 2 lakhs

Taking Advantage of the PMAY Scheme

The Urban and Gramin/Rural categories of the PMAY scheme effectively target the “Housing for All” by 2022 objective of the government by abundantly focusing on EWS and LIGs.

Beneficiaries eligible under PMAY (U) or PMAY (G) can consult a financial institution registered under the scheme to know more about the benefits and the application process.