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Pradhan Mantri Awas Yojana
What is the purpose behind it ?
Property and land prices in India have been steadily rising for the past decade. It is especially true for residents of metropolitan areas, where overall home prices have increased by 38 percent. The scheme was developed to encourage sustainable and affordable housing for the urban poor due to a major fall in affordability. The initiative attempts to increase the number of residences built using environmentally friendly materials. The goal is to generate as little environmental damage as possible, as well as minimal air and sound pollution. It aims to address the housing needs of the urban poor, including slum dwellers, through various measures and incentives, such as the promotion of affordable housing for weaker sections through credit-linked subsidies, slum rehabilitation with the participation of private developers using land as a resource, and so on.Pradhan Mantri Awas Yojana : 4 components
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“In-situ” Slum Redevelopment (ISSR) using Land as Resource : The "Pradhan Mantri Awas Yojana (Urban) - Housing for All" mission's most significant component is this. The strategy tries to rebuild slums by utilising land as a resource and including the business sector. The mission's goal is to unlock the potential of land under slums by building residences on it for eligible slum inhabitants, allowing them to integrate into the formal urban settlement. The approach's highlights, according to the rules, are grants of INR 1 lakh per house on average for all houses created for eligible slum inhabitants. State governments also determine how the houses built will be distributed: through ownership rights or renewable, mortgageable, and inherited leasehold rights.
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Affordable Housing through Credit-Linked Subsidy : The most essential benefit of the PMAY programme is CLSS. Beneficiaries of the Economically Weakened Section (EWS), Low-Income Group (LIG), Middle-Income Group (MIG-1) and (MIG-2) can now get home loans with substantially cheaper interest rates for building or acquisitions. Beneficiaries of the scheme are eligible for an interest subsidy if they wish to take out a loan to buy or build a new home, or if they want to add rooms, kitchens, or bathrooms to existing homes as incremental housing. The government will provide a 6.5 percent, 4%, and 3% interest subsidy on loans of INR 6 lakh, INR 9 lakh, and INR 12 lakh, respectively, under this scheme. Members of a specific category may be eligible for a significant increase in interest payments. If a member of the above group applies for a home loan, he or she will be charged an interest rate of 7% to 8%, depending on the current interest rate. He or she will be eligible for an interest subsidy on a housing loan up to INR 6 lakh. The interest subsidy is paid directly to the recipients' accounts by the lending institutions, which reduces the amount of the housing loan, resulting in lower EMIs. If the loan amount exceeds INR 6 lakh, however, the borrower must pay the usual interest rate on the amount exceeding INR 6 lakh. The National Housing Bank (NHB), Housing and Urban Development Corporation (HUDCO), and State Bank of India have been selected by the ministry to monitor progress and channel subsidy to beneficiaries through lending institutions (SBI).
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Affordable Housing in Partnership (AHP) : The government has also established a collaboration between the private and public sectors to create affordable housing. The project intends to provide affordable homes to the economically vulnerable groups as part of the preventive strategy. People with physical disabilities, senior persons, SCs and STs, and other backward vulnerable groups of society may be given priority in allotment. AHP projects must have a minimum of 250 dwellings, with at least 35% of those in the EWS category.
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Subsidiary for Beneficiary-led Construction or Enhancement : This component aids households in the EWS group in improving or building new homes. It focuses on giving financial help to EWS houses being developed by States or Union Territories under various collaboration arrangements. Each EWS house receives INR 1.5 lakh in central support. A new component was added after Covid to go along with all of these. The Union cabinet recognised the necessity for affordable rental housing plans on June 14, 2020 – essentially a sub-scheme under PMAY (U). The goal was to provide secure and decent rental housing for urban poor migrants at affordable rates, close to their workplaces, in order to protect their employment possibilities.
It is critical to determine whether you are eligible for subsidies before applying for the plan. The variables listed below will assist you in determining your eligibility to apply for the subsidy.
- The project aims to provide housing for everyone. As a result, beneficiaries who have previously received benefits under the Pradhan Mantri Awas Yojana are not eligible for PMAY benefits. The beneficiary and family members must supply their Aadhaar numbers when applying for the loan to avoid duplication.
- Any household with an annual income of up to INR 18 lakh can apply for this scheme.
The annual income of spouse could also be included while applying.Yearly income for the EWS group should be up to INR 3 lakh, whereas annual income for the LIG category should be between INR 3 lakh and INR 6 lakh.
MIG I households have an annual income of between INR 6 lakh and INR 12 lakh, whereas MIG II households have an annual income of between INR 12 lakh and INR 18 lakh. - The beneficary cannot avail of PMAY benefits on the already built house.
- .To be eligible for the subsidy, the borrower must submit a self-declaration to the lender detailing all pertinent information, including evidence of income and title to the property to be purchased.
- If a house loan is used to renovate or expand an existing home, the work must be completed within 36 months of receiving the first loan payment.
- Women have benefited more from this programme than males. Women, like males, are eligible for a subsidy of up to INR 2.67 lakh from the government. The stipulation is that the property paperwork must be signed by a woman. Women can be solo owners or co-owners of a business.
- No beforehand central assistance should have been availed by the beneficiary family from any housing scheme from the Indian Government or any Pradhan Mantri Awas Yojana scheme.
- As per the census 2011, the house or property of purchase must belong to one of areas, towns, villages or cities.
- As per the last budget, the subsidy was stopped for MIG till 2021 whereas the subsidy of LIG and EWS category will continue till March 31, 2022.
How to Avail Subsidy Under the PMAY Scheme ?
If you meet the aforementioned criteria, you can apply for the plan both offline and online. There are two ways to apply for the subsidy: through CSCs (Common Services Hubs), which are government service delivery centres. The alternative option is to apply directly through PMAY's official online platform. The following steps will help you acquire a home loan subsidy under the PMAY programme:- Check your income threshold: When applying for the PMAY subsidy on your house loan, you must first determine which category you fall into (EWS, LIG or MIG). The same rules apply to the carpeting in your home property. You may use an online EMI calculator to see how much money you'll save on your entire home loan. This will assist you in comprehending your responsibilities as a borrower, as well as the monthly EMIs depending on the negotiated rate of interest. For example, if the borrower has a loan of INR 15 lakh, the subsidy will be limited to INR 6 lakh, and the remaining INR 9 lakh will be charged at ordinary interest rates.
- Visit the Official Website: When you've determined which category you belong to, head to the official website to apply. From the header menu section, select "Citizen Assessment."
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Proceed with loan application – Fill out the application form by submitting all the details such as your income proof, investment details, property details, co-applicants details etc. To avail of the Pradhan Mantri Awas Yojana, the following documents are required:
- Age Proof documents – a copy of your Passport/Driving License/Policy/Birth Certificate/PAN Card/School Leaving Certificate
- Affidavit cum Declaration that proves that the beneficiary family does not own any pucca house
- Declaration for property under construction, if applicable – Construction Agreement with the developer or builder, Receipt of advance payment for the property you intend to purchase
- Copy of Address Proof – Bank Statements/Property Registration documents/Property Tax Receipt/Voter ID
- Salary Proof Documents (for each earning member of the household) – copy of Salary slips for the last three months/Appointment Letter/Yearly Increment Letter/Certified true copy of Form 16
- Existing loan details – to be provided through bank statements
- Processing Fee Cheque – To be issued from the salary account for salaried customers or the business account for self-employed customers
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Pradhan Mantri Awas Yojana Eligibility 2022-23
Individuals who fulfil the following criteria are eligible to get the benefit of PMAY subsidy on home loan.|
parameters
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Middle income
Group 1 |
Middle income
Group 2 |
Lower Income
Group |
Economically Weaker Section
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Household
annual income |
6 lakh to 12 lakh
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12lakh to 18 lakh
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3 lakh to 6 lakh
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up to 3 lakh
|
|
Subsidy on home loan interest rate
|
4% p.a.
|
3% p.a.
|
6.5% p.a.
|
6.5%p.a
|
|
Eligible Loan amount for interest subsidy
|
9 lakh
|
12 lakh
|
6 lakh
|
6 lakh
|
|
maximum repayment tenure of home loan
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20 years
|
20 years
|
20 years
|
20 years
|
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maximum amount of subsidised interest
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2.35 lakh
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2.30 lakh
|
2.67 lakh
|
2.67 lakh
|
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Maximum dwelling unit's carpet area
|
160
|
200
|
60
|
30
|
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Pradhan Mantri Awas Yojana FAQs
Q1. How to apply for the PM Awas Yojana Online?
A You can apply for PMAY online by visiting the official website of PMAY. The process begins with Aadhaar verification by entering the 12 digit Aadhaar number and that the citizen assessment option. Verification feeling all personal details in the application form and click the save button. Unsuccessful application you will be allotted a system generated application number that can be used for future reference .
Q2. Who is not eligible for PMAY ?
A. Individuals Are who already have a Pucca house in the country or have availed benefit from a central or state government run housing scheme earlier have an income more than 18,00,00 are not eligible for PMAY home loan
