Description

The Pradhan Mantri Awas Yojana (PMAY) is a scheme launched by the Central Government of India to boost and harness the affordability and availability of housing for all by the 31st of March 2022. The same year 2022 will also be the 150th birth anniversary year of our Father of the Nation – Mahatma Gandhi and the nation will be in the 75th year of Independence. It was launched on 1st of June 2015 by Prime Minister Sh. Narendra Modi and for the next seven years the Government of India has established a target of providing 20 million and more houses to the various sections of the society on the basis of their income and financial stability.

Under this scheme, low cost ‘pakka’ houses will be built across the nation under strict mandates regarding eco-friendly construction measures for the poor and lower-income group. It is a Credit Linked Subsidy Scheme (CLSS), under this scheme the beneficiaries are eligible for an interest subsidy if they purchase or construct their house by the means of loan. 

Categories of PMAY

As the scheme has been designed and constructed on the basis of various sects of our society, it has majorly been classified into two different categories on the basis of the demography, these are namely;

  1. Pradhan Mantri Awas Yojana – Urban
  2. Pradhan Mantri Awas Yojana – Gramin

1.Pradhan Mantri Awas Yojana – Urban

The Urban Yojana is a type of classification under which the list of towns and cities are described as urban zones and currently has over 4300 names in the list. It is a basket of various Urban Development Authorities, Industrial Development Authorities, Special Area Development Authority, and other authorities involved in planning and regulatory activities in a state.

According to the Government of India Gazette on PMAY, the PMAY-U scheme is to be carried out in three phases:

  • Phase-I: To cover 100 cities between April 2015 and March 2017
  • Phase-II: To cover 200 cities between April 2017 and March 2019
  • Phase-III: To cover remaining cities between April 2019 and March 2022

As per some of the reports published at major Government portals, the current number of houses being built and allotted under PMAY-U are as follows:

  • Sanctioned Houses: 85 Lakh
  • Completed Houses: 28.08 Lakh
  • Occupied Houses: 25.97 Lakh

2. Pradhan Mantri Awas Yojana – Gramin

The Gramin Yojana has been running in our country since the days of PM Indira Gandhi, and it was named as Indira Awas Yojana, which was renamed to PMAY-Gramin in the March 2016. The primary objective of this scheme is to access and availability of primary housing to one and all in the rural areas of the nation, the rural areas of Delhi & Chandigarh are kept as exceptions and are treated under PMAY-Urban.

Unlike the Urban scheme, the Gramin scheme is targeted for over one crore ‘kutcha’ houses in the rural areas of the country. Under this scheme, the beneficiaries will receive an assistance of ₹ 1.20 Lakh for houses in the plains and ₹ 1.30 Lakh for houses in the hilly areas.

The rural scheme is not only limited to citizens belonging to lower income group, the scheme also extends its benefits to citizen under the below poverty line segment. On an average and at the minimum, the government provides assistance up to ₹ 70,000 for construction in plains and ₹ 75,000 for construction in hilly areas.

The beneficiaries are also identified on the basis of Socio Economic and Caste Census (SECC) constructed by the Ministry of Rural Development, this census includes;

  • Schedule Castes and Scheduled Tribes
  • Non-SC/ST and other minorities under BPL
  • Freed Bonded Labors
  • Widows & Next of Kin of Paramilitary Forces, Ex-servicemen and others

Components of Pradhan Mantri Awas Yojana

  1. Credit Linked Subsidy Scheme (CLSS)
  2. “In-situ” Slum Redevelopment using Land as a resource
  3. Affordable Housing in Partnership
  4. Individual Construction/Enhancement of House led by Beneficiaries

1. Credit Linked Subsidy Scheme (CLSS)

The Credit Linked Subsidy Scheme provides interest rate subsidy to eligible applicants. With the help of this, an applicant is entitled to receive certain percentage of interest amount back as a subsidy if the home or property is purchased through the advances of a loan. The loans under this scheme are provided for a maximum tenure of 20 years.

The subsidy rate, amount and other details are mentioned in the table below:

 

EWS

LIG

MIG 1

MIG 2

Max. Loan Amount

Up to ₹ 3 Lakh

₹ 3 – 6 Lakh

₹ 6 – 12 Lakh

₹ 12 – 18 Lakh

Interest Subsidy

6.50%

6.50%

4.00%

3.00%

Max. Subsidy

₹ 2,67,280

₹ 2,67,280

₹ 2,35,068

₹ 2,30,156

Max. Carpet Area

30 sq. m.

60 sq. m.

160 sq. m.

200 sq. m.

2. “In-Situ” Slum Redevelopment using Land as a resource

The ‘In-Situ’ scheme majorly focuses on rehabilitation of slums with the land resources available with the state government, with proper associations with private organizations, to provide affordable houses to all families living in such slums.According to this scheme, the Central Government decides on the distribution price of the houses, while the state government decides the respective contribution of the beneficiary.

3. Affordable Housing in Partnership (AHP)

Affordable Housing in Partnership is known for providing financial assistance up to ₹ 1.5 Lakh to EWS families on behalf of Central Government for purchase of houses. On the same line, the state and the UTs can also enter into association with their agencies or private agencies to develop similar housing projects for the under-privileged. 

4. Individual Construction/Enhancement of House led by Beneficiaries

This individual component is specifically designed for the families and individuals who do not fall in to the category of any of the above-mentioned scheme component. Beneficiaries of this scheme will receive assistance from the central government up to ₹ 1.25 Lakh for new construction or enhancing their existing home at the same place. 

 

Pradhan Mantri Awas Yojana – Features & Benefits

The PMAY is the only government run scheme for providing home to the under-privileged or less-privileged classes of the society. Some of the prominent features of the Awas Yojana are as provided:

  • The rate of interest applicable is subsidized to 6.50% per annum for a housing loan of tenure up to 20 years
  • Ground floors of such projects are kept reserved for senior citizens and differently abled citizens of the society
  • The construction technologies are sustainable and eco-friendly
  • The entirety of this scheme covers over 4ooo cities and 500 locations as Tier I city
  • No maximum limit of loan amount is prescribed under this scheme

Benefits and key parameters under this scheme:

 

Particulars

EWS

LIG

MIG I

MIG II

Max. Household Income

Up to ₹ 3 Lakh

₹ 3 – 6 Lakh

₹ 6 – 12 Lakh

₹ 12 – 18 Lakh

Max. Loan Amount

Upto ₹ 6 Lakh

Upto ₹ 6 Lakh

Upto ₹ 9 Lakh

Upto ₹ 12 Lakh

Interest Subsidy

6.50%

6.50%

4.00%

3.00%

Max. Subsidy

₹ 2,67,280

₹ 2,67,280

₹ 2,35,068

₹ 2,30,156

Max. Carpet Area

30 sq. m.

60 sq. m.

160 sq. m.

200 sq. m.

Discount rate for NPV

9.00%

9.00%

9.00%

9.00%

Processing Fees

₹ 3,000

₹ 3,000

₹ 2,000

₹ 2,000

Subsidy on existing loan after

17.06.2015

01.01.2017

Applicability of no Pakka House

Not for renovation or Upgradation

Yes

Yes

Woman Ownership/

Co-ownership

Mandatory for New acquisition

Not applicable

Basic Civic Infrastructure

Compulsory

(Water, Sanitation, Sewerage, Road connectivity & Electricity)

Beneficiaries under PMAY (Identification of beneficiaries)

As per the official documents or gazettes available, the exact and accurate definition of a beneficiary can be given as in words provided below:

  • A beneficiary will comprise of a husband, wife, unmarried sons and/or unmarried daughters
  • An adult earning member (irrespective of marital status) can be treated as a separate household

The Pradhan Mantri Awas Yojana (PMAY) is significantly designed to improve the housing conditions of the urban poor who are forced to live in slum areas and others respective areas without proper civic infrastructure.

Other constraints provided for identification under the PMAY-Urban scheme are as following:

  • Citizens earning less than ₹ 3 Lakh are considered to be the Economically Weaker Section (EWS) under this scheme, the other two are Low Income Group (LIG) earning in between ₹ 3 Lakh to 6 Lakh and Middle-Income Group (MIG) earning in between ₹ 6 Lakh to 18 Lakh
  • Beneficiaries belonging to the EWS category are entitled for complete assistance under this scheme
  • Beneficiaries belonging to the LIG and MIG category are only entitled for the Credit Linked Subsidy Schemes (CLSS)
  • To affiliate under a category, a beneficiary is required to submit income documents to the concerned authorities

Objectives under Pradhan Mantri Awas Yojana

With each year passing, the populations of urban dwellers are continuously increasing at a high rate. Moreover, it is anticipated that the population of home-seeking urban working class will keep on increasing at a significant rate over the years. As per the recent estimated provided by the NITI (National Institution for Transforming India) Aayog, the urban population might rise many folds and can reach up to 800 million by the year 2050. Hence, there are certain challenges that need to be taken care of, to provide affordable and quality housing to all working in the cities and belong to the categories as mentioned above. Here are some of the key factors as objectives under the PMAY:

  • The first and foremost objective is to provide residential areas, that can be affordable for all eligible candidates by the year 2022
  • Providing home specially to undermining demography such as Women, to economically challenged sections like Scheduled Tribes and Scheduled Castes
  • Providing overall assistance to the neglected classes like widows of paramilitary personnel, transgenders, families belonging to Below Poverty Line segments
  • Selected senior citizens and differently abled citizens of the society

Eligibility for PMAY

The scheme provides its benefits to all citizens falling under the categories of EWS, LIG and MIG, to determine the particular category, the Government of India uses the Socio-Economic and Caste Census (SECC) which was calculated and reported in the year 2011. For the Gramin yojana, the respective government agencies along with the Gram Panchayat and the Tehsil prepare and approve the list of the beneficiaries. To make it to the list, there are certain eligibility criteria to adhere to:

  • Household having total annual income of ₹ 6 Lakh to ₹ 18 Lakh. The income of both the spouses can be included for eligibility
  • Indian Women citizens are allowed to apply separately. Without providing any demographic details
  • Beneficiary family must not be in possession of a ‘Pakka’ house, in the applicant’s name or any of the family member’s name, in any part of the country
  • Beneficiary family must not have availed the central assistance under any government scheme from the Centre of State
  • For EWS/LIG applicants, there should be at-least one female owner of the house
  • For Balance transfer, the home loan entitled for transfer should have been availed on/after 01st Jan 2017 for MIG and 17th June 2015 for EWS/LIG

How to avail PMAY subsidy?

Pradhan Mantri Awas Yojana (Urban & Gramin) is a credit linked subsidy scheme, for which an applicant has to apply for it at their nearest bank branch. If a person is eligible under the prescribed norms, the request for subsidy must be submitted to a National housing bank as per the steps provided below;

  • One can download the request application form, and fill it with necessary details
  • After filling the form, one would need to submit it to their nearest bank branch
  • PMAY subsidy applications are carried out under the Asset Servicing branches
  • Aadhar details are mandatory for an application
  • Banks would require the Aadhar details of the entire family for successful application request

List of Documents required for PMAY

Pradhan Mantri Awas Yojana has so far facilitated to over 88 Lakh homes to under-privileged families in our country. For a successful application, one needs to provide a set of documents regarding their eligibility and income status. The list of documents are as follows;

KYC Documents –

  1. Aadhar Card
  2. PAN Card (for individuals providing Income statement)
  3. Passport Details
  4. Voter ID card
  5. Driving License

Residential Documents –

  1. Utility Bill – Electricity, Telephone, Postpaid Mobile, Water tax etc.
  2. Ration Card
  3. Letter from the Employer
  4. Bank Statement / Copy of passbook with address
  5. Valid Rent Agreement

Income Documents –

For Salaried Individuals, Self-employed professional & Self-employed Non-professional

Salaried Individuals

Self-employed professional

Self-employed Non-professional

Salary slips for the last 6 months

Certificate of Qualification – CA, CS & Doctors

Copy of last 2 year’s IT returns

Salary Certificate for the Year

Copy of last 2 year’s IT returns

Copy of P/L account for the last 2 years

Copy of P/L account for the last 2 years

Copy of audited Balance Sheet for the last 2 years

Cash Salary – On company’s letterhead

Copy of audited Balance Sheet for the last 2 years

State Tax returns for the last 2 years

State Tax returns for the last 2 years

Bank Statement for the last 6 months

Bank statement for last 6 months (Savings, Current and OD account)

Bank statement for last 6 months (Savings, Current and OD account)

Documents related to Property –

Property documents may come handy in case of an existing loan balance transfer. The bank under PMAY scheme would require to verify the existing loan arrangement for various reasons. The list of documents as required for the balance transfer are as following;

  • Agreement of sale
  • Allotment letter from a registered builder
  • Registration and stamp duty receipt
  • Index – II form with details of the property
  • ‘No Objection Certificate’ from the builder
  • Own Contribution receipt
  • Development Agreement
  • Tripartite Agreement
  • Partnership Deed
  • Sale Deed
  • Title Search Report

How to apply for PMAY through various methods?

One can apply for the PMAY (Urban & Gramin) through online and offline methods. However, at the time of application, the applicant must declare their category between the two provided below;

1. Under the 3

The economically categorized sections as per the Policy gazette are Economically Weaker Sections (EWS), Low Income Groups (LIG) and the Middle-Income Group (MIG) and having an annual income between ₹ 3 Lakh to ₹ 18 Lakh overall.

2. Slum Dwellers

This is the category defined for citizens living under poorly built ‘Kachha’ residences without proper sanitation and water facilities.

Online Method –

Steps to Log-in through PMAY website:

  • Step 1: Click on the website link, and log on to official PMAY website
  • Step 2:  Select ‘Citizenship Assessment’, from the drop down select ‘benefits under 3 components’
  • Step 3: Now, enter your Aadhar details as they are mandatory for PMAY registration
  • Step 4: Once Aadhar details are furbished, on the next page fill-in the personal details 
  • Step 5: After filling the details, submit your application
  • Step 6: Click on ‘save’, and take a print out once submitted successfully

Offline Method –

Unlike the online method, one is required to download and take a print out of the application form and visit a Common Service Centre (CSC) operated under the watch of the respective State Governments or a PMAY listed bank in the prescribed urban region.

  • On visiting, one is required to carry all necessary documents as provided in the list above regarding the Personal, Residential and Income details of an applicant

For Pradhan Mantri Awas Yojana (Gramin), the eligible candidates are listed by the Gram panchayat and the tehsil administration and reported to the State Government.

  • Once the names are selected, the gram panchayat declares the list of candidates and ask for required documents
  • Once collected, the documents are forwarded to the tehsil administration for further allotments

FAQs

Q1Who can avail Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme?
• A recipient family • Provided that he/she doesn't possess a pucca house (an all-climate abiding unit) in his/her name in any part of India • Provided likewise that on account of a married couple, both of the spouse or both together in joint proprietorship will be qualified for a single house, subject to salary eligibility of the family unit under the Scheme
Q2What constitutes a household/beneficiary family?
A beneficiary family comprises husband, wife, unmarried sons and/or unmarried daughters.
Q3What are the income rules for various categories?
• For EWS Category: annual income up to Rs. 3.00 lakh • For LIG Group: yearly income up to Rs. 300001 lakh to Rs. 600000 lakh • For MIG - I: annual income up to Rs. 600001 lakh to Rs. 1200000 lakh • For MIG II: yearly income up to Rs. 1200001 lakh to Rs. 1800000 lakh.
Q4What all documents are required for applying for the PMAY subsidy scheme?
It was broadly written in the blog above but in sort you require the following documents: • Application form • PAN card • Identity proof (other than PNA card) • Address proof • Proof of Income • Property documents
Q5How will I receive the interest subsidy benefit under Pradhan Mantri Awas Yojana?
When the government verifies all of your documents, the subsidy will come into your account directly. Once banks receive the interest subsidy, it will be credited upfront to the loan account, and EMI will be readjusted.
Q6Is there any limit to the loan amount or the property value?
No, there is no limit to the property of the value, but you can avail the benefits under the four above mentioned category. However, the value of the property does not matter, but the carpet area is considered when you are purchasing it. The carpet area of houses being developed or upgraded under this part of the mission ought to be up to 30 square meters and 60 square meters for EWS and LIG, separately so as to get benefit of this CLSS. The recipient, at his/her prudence, can manufacture a place of more significant zone; however interest subvention would be constrained to first Rs. 6 lakh as it were. The most extreme floor covering a region of the residential unit is 120 sq.m./1291.67 sq. Feet for MIG I classification and 150 sq.m./1614.59 sq. Feet for MIG II classification.
Q7What is the interest subsidy applicable for each of the category?
• For EWS/LIG: 6.5 % • For MIG-I: 4 % • For MIG -II: 3 %
Q8My spouse already owns a Pucca House, and now I want to buy one new property on my wife’s name. Can I qualify for the CLSS scheme under PMAY?
No, a household cannot take the benefit under CLSS as a spouse in the beneficiary family/household already owns one property.
Q9What is the maximum tenure on which the PMAY subsidy is applicable?
A beneficiary can avail a more extended term beyond 20 years as per bank credit norms, but the subsidy will be restricted to a max time of 20 years.
Q10Is there any additional eligibility norms apart from income, first pucca house and carpet area?
The property should have necessary civic infrastructure like water, toilet, sanitation, sewerage, road, electricity etc.
Q11Can a person apply twice?
No, since your account is linked with your Aadhar Card, you would not be able to apply twice.
Q12Is there any registration fee for this scheme?
If you are applying through the online portal, there will be no charges. If you apply offline, you will have to pay a registration fee of Rs. 25 plus GST.
Q13Can NRI avail this subsidy?
Yes.
Q14Do I have to give any additional documents to avail this subsidy?
No, you need to provide the self-declaration that you do not owe the pucca house.
Q15How will the interest subsidy work in case I transfer my home loan to another lender?
In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for a balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.
Q16What happens when the subsidy has been disbursed, but due to specific reasons, the construction of the house is stalled?
In such cases, the subsidy is to be recovered and refunded to the Central Government.
Q17Is woman ownership compulsory to be eligible for this subsidy?
Woman ownership or co-ownership is compulsory for EWS and LIG. However, this condition is not compulsory for self construction/extension or MIG categories.
Q18Is it required to provide the Aadhaar card details for all the members of the beneficiary family?
Yes. It is compulsory to provide the Aaadhar details for all the members of the beneficiary family who are applicants.
Q19What is the processing fee to avail the scheme?
Prime lending institutions do not charge any processing fees in order to get advantage of this scheme
Q20Whether repairing work to the existing house is covered for benefit under the Scheme?
Repairing work to the existing house can be undertaken in houses which are kutcha, semi pucca and require extensive renovation to make it into a pucca house. However, this is applicable only for applicants in the EWS and LIG categories.
Q21What is the TAT (Turn around Time) for Foreclosure Statement?
The TAT for issuance foreclosure statement is typically 12 working days.
Q22A household owner owns a plot, however, does not have a house. Is he eligible?
Plan refers to that "The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India to be eligible to receive central assistance under the mission.” In this manner, recipient family previously owning shop, business foundation, plot, processing plant yet not owning a pucca house clears the qualification parameter of first house possession.
Q23How subsidy amount will be set off, i.e. whether loan amount will be reduced or tenure?
Subsidy amount shall not be adjusted against tenure. The impact of subsidy would be adjusted against the principal only, further impacting EMI amount.