Difference Between PMAY-Urban and PMAY-Gramin

To address the increasing housing shortage and provide affordable housing to the economically challenged sections of society, Pradhan Mantri Awas Yojana was introduced in 2015. The scheme offers financial assistance and interest subsidies to eligible applicants and aims to provide affordable houses that include all basic amenities such as water supply, electricity, toilet and kitchen.

There are two categories of the PMAY:

• Pradhan Mantri Aqas Yojana - Urban (PMAY-U)
• Pradhan Mantri Aqas Yojana - Gramin (PMAY-G)

Let’s learn the difference between the two, their eligibility criteria and their application process.

What is PMAY-Urban?

The Government of India launched PMAY-U as a part of its vision of providing “Housing for All.” The scheme is implemented by the Ministry of Housing and Urban Affairs (MoHUA). The PMAY-U is designed for slum dwellers and those belonging to Economically Weaker Sections (EWS), Low Income Group (LIG) and Middle Income Group (MIG) categories in the urban areas.

Under the PMAY-U, the applicants get the following benefits.

Beneficiary-led Individual House Construction or Enhancement (BLC)

The Central government offers financial assistance of ₹1.5 lakhs to individual eligible families belonging to the EWS category.

Affordable Housing in Partnership with the public or private sector (AHP)

The Government of India offers Central assistance of ₹1.5 lakh per EWS house in projects with a minimum of 250 houses, where at least 35% of the houses are reserved for EWS categories.

“In-situ” Slum Redevelopment (ISSR)

Under the In-situ Slum Redevelopment vertical, which uses land as a resource alongside private developers, eligible slum dwellers are provided with a grant of ₹1 lakh per house.

Credit-Linked Subsidy Scheme (CLSS)

Eligible beneficiaries belonging to Economically Weaker section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II are provided an interest subsidy of 6.5%, 4% and 3% on the loan amount up to ₹6 lakh, ₹9 lakh and ₹12 lakh respectively borrowed from Banks, Housing Finance Companies and other such institutions.

Eligibility Criteria for PMAY-Urban

The following are the eligibility criteria for Pradhan Mantri Aqas Yojana - Urban (PMAY-U).

• Families belonging to the EWS/LIG/MIG category living in kutcha houses in urban areas.
• Beneficiaries not allotted houses under any other housing scheme.
• ESW households with an annual income of up to ₹3 lakhs.
• Medium Income Groups (MIG) with annual income between ₹6 lakhs and ₹9 lakhs.
• Low Income Groups (LIG) with annual income between ₹3 lakhs and ₹6 lakhs.
• Preference would be given to widows, single women, senior citizens, transgender people, and people with disabilities.

How to Apply for PMAY-Urban?

You can apply for PMAY-U online or offline. Here’s how you can apply for Pradhan Mantri Awas Yojana - Urban online

Step 1: Visit the PMAY-Urban official website.

Step 2: Next, click on ‘Apply for PMAY-U 2.0’ It will redirect you to another page.

Step 3: Read all the instructions given and the documents required, and click on ‘Proceed’.

Step 4: Fill in the Prerequisite Parameters/Eligibility Check, select the vehicle and enter all details.

Step 5: Enter your Aadhaar number and Name as per Aadhaar and click on ‘Generate OTP’.

Step 6: Enter the OTP received and fill the application form by entering your Aadhaar Card details, and the site will direct you to an online application form. Fill in all the mandatory details asked for, and upload the softcopy of the required documents.

Step 7: Once you’ve filled the form and attached the documents, click on ‘Save’ and enter the Captcha code. The application will be submitted.

What is PMAY-Gramin?

Pradhan Mantri Awas Yojana - Gramin (PMAY-G) is a government housing scheme specifically designed for economically disadvantaged households living in the rural areas of the country. Beneficiaries under the scheme are selected through a three-stage validation process that includes the Socio-Economic Caste Census (SECC) 2011and Awaas+ (2018) surveys, Gram Sabha verification, and geo-tagging.

The PMAY-G works in collaboration with Information Technology (IT) and Direct Benefit Transfer (DBT) for efficient fund disbursement. The scheme also promotes region-specific housing design and evidence-based monitoring via geo-tagged images at various construction stages.

The PMAY-G provides financial assistance of ₹1,20,000 per unit for eligible households in flat areas and ₹1,20,000 per unit for houses in hilly areas. Beneficiaries can also avail institutional loans up to ₹70,000 at 3% interest rate for constructing permanent houses. The maximum principal amount eligible for subsidy is ₹ 2,00,000.

Under the scheme, eligible families can receive financial support to build a house with a minimum area of 25 square metres, including a separate kitchen. Beneficiaries can avail financial assistance of up to ₹12,000 for constructing a toilet, LPG connection, along with other basic amenities such as electricity, water supply, and sanitation through other government schemes.

In addition, eligible households may earn wages through rural employment programs such as MGNREGA during construction work. All payments are sent directly to the beneficiary's bank or post office account through Aadhaar-linked electronic transfers, ensuring transparency and timely disbursement of funds.

Eligibility Criteria for PMAY-Gramin

The following is the eligibility criteria for PMAY-Gramin.

• Houseless Households: All households without any shelter.
• Households with Kuccha Houses: Households living in homes with kuccha walls and kuccha roofs or houses with zero, one, or two rooms as per the Socio-Economic and Caste Census (SECC) 2011.
• Destitute households or those living on alms.
• Manual scavengers
• Primitive Tribal Groups.
• Legally released bonded labourers.

How to Apply for PMAY Gramin?

You generally cannot apply directly online as a new applicant. The government identifies beneficiaries based on the Socio-Economic and Caste Census (SECC) data.

However, you can check the Panchayat Wise Permanent Wait List on the UMANG official website for PMAY - G.

FAQs

What is the main difference between PMAY-Urban and PMAY-Gramin?

PMAY Urban is for people living in towns and cities. PMAY Gramin is for people living in villages and rural areas.

Who can apply for PMAY-Urban?

People from eligible income groups who want to buy, build, or improve a house in an urban area can apply for PMAY Urban.

Who can apply for PMAY-Gramin?

Families living in rural areas who do not have a proper house and meet the scheme rules can apply for PMAY Gramin.

Is the subsidy amount the same under PMAY-Urban and PMAY-Gramin?

No. The benefits and financial support under the two schemes are different because they are designed for different groups of people.

Can a person apply for both PMAY-Urban and PMAY-Gramin?

No. A person can apply only for the scheme that matches their place of residence and eligibility.

How can I check if I am eligible for PMAY?

You can check your eligibility based on your income, family details, and whether you already own a house.

Which is better: PMAY-Urban or PMAY-Gramin?

Neither scheme is better than the other. PMAY Urban is meant for city residents, while PMAY Gramin is meant for people living in villages.

Can I get a home loan under PMAY-Urban?

Yes. Eligible applicants under PMAY Urban can get interest subsidies on home loans.

Does PMAY-Gramin provide money to build a house?

Yes. PMAY Gramin provides financial assistance to eligible rural families to help them build a house.

Can I apply for PMAY if I already own a house?

No, the scheme is meant for people who do not own a permanent house and are either houseless or own a kuccha house.