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Introduction

Pradhan Mantri Jan Awas Yojana is one of the pioneer projects of the Government of India launched in 2015 with the aim to provide housing for all by the end of the year 2022. This project aims to provide affordable housing to all the poor and economically backward citizens of the country, be it in the rural areas or the urban areas. This scheme has divided the goal of achieving the target affordable and pucca housing for poor citizens into two geographical areas, urban poor population and rural population.

The two schemes under this program are, accordingly, known as,

  • Pradhan Mantri Gramin Awas Yojana (PMGAY) - for rural population
  • Pradhan Mantri Awas Yojana Urban – for urban population.

Under this scheme, the government will assist the citizens in building affordable houses in selected cities and towns with the use of eco-friendly construction methods. Also, under the Credit Linked Subsidy Scheme, beneficiaries under PM Awas Yojana are eligible for interest subsidy if they avail a loan to purchase or construct a house.

This scheme of the Government is also linked with various other programs of the government like the

  • Pradhan Mantri Jan Dhan Yojana (with the aim of opening a zero balance account and spreading the reach of banking facilities to every corner of the nation)
  • Swachh Bharat Abhiyan (with the aim of making India open defecation free nation by the construction of in-house toilets and bathrooms, community toilets and general cleanliness of the streets and the roads houses and other public areas)
  • Ujjwala Yojana (with the aim to provide LPG gas connection to every household of the country)
  • Saubhagya Yojana (with the aim to provide electricity to every household of the country)
  • Access to pure drinking water

Beneficiaries/ Eligible Applicants for the Scheme

The beneficiaries of the scheme are the economically backward or low income section as well as the first time homeowners who would have otherwise faced difficulty in purchase of a new house. The scheme is also linked with various other flagship schemes of the government and the eligibility will depend on such schemes as well.

The other key points of eligibility are highlighted below.

  • The applicant should not own any pucca house in his/her name.
  • The applicant has to have income in the range of Rs. 6,00,000 up to Rs. 18,00,000.
  • The beneficiary family would consist of husband, wife, unmarried sons and/or unmarried daughters.
  • The beneficiaries of the scheme are divided into four categories: the Economically Weaker Section, Low-income Groups, Middle income Group I and Middle Income Group II.
  • The applicant has to submit and affidavit of their income proof to be classified under the EWS and LIG categories.
  • The beneficiaries of the EWS category are provided with complete assistance whereas the applicants of the LIG category and above are eligible for the credit linked subsidy scheme (CLSS) under the scheme.

Features of the PMAY

The Pradhan Mantri Awas Yojana is a unique model of the government and one of the largest housing schemes in the world. Some of the features of this scheme are mentioned below.

  • The tenure of the loans disbursed under the scheme is 20 years.
  • The scheme is categorized on the basis of the income of the public and the various features of the scheme according to the same are:
ParticularsEWSLIGMIG IMIG II

Household income (annually)

Up to Rs. 3,00,000

Above Rs. 3,00,000 Up to Rs. 6,00,000

Above Rs. 6,00,000 Up to Rs. 12,00,000

Above Rs. 12,00,000 Up to Rs. 18,00,000

Subsidy on rate of Interest

6.50% p.a.                                       

6. 50 % p.a.               

4.00% p.a.

3.00% p.a.

Maximum eligible home loan amount for subsidy qualification

Rs. 6,00,000

R Rs. 6,00,000

Rs. 9,00,000

Rs. 12,00,000

Maximum Unit Carpet Area

30 sq.m.

60 sq.m.

160 sq.m.

200 sq.m.

Maximum interest subsidy

Rs. 2,67,000 (approximately)

Rs. 2,67,000 (approximately)

Rs. 2,35,000 (approximately)

Rs. 2,30,000 (approximately)

  • The scheme gives preference to the Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, Minorities, Persons with disabilities and Transgenders subject to beneficiaries being from EWS / LIG, MIG -I & II segments under the CLSS as applicable.
  • The beneficiaries can get a loan over the tenure of 20 years at the discretion of the Primary Lending Institutions, however, the interest subsidy would be restricted on home loans up to the limits allowed for the respective income categories for the eligible tenure of 20 years only.
  • There is no upper limit on the amount of loan to be disbursed, however, the credit linked subsidy available for each category of applicants will be as per the above table and any loan over and above such loan amounts will be at non-subsidized rates.
  • The scheme also covers repair work to be done to the house under the eligibility of the scheme provided such repair work done to the existing house (kuccha, semi pucca house) is done where such house requires extensive renovation to convert it to a pucca house. Such benefit is available only under the EWS/LIG category.
  • The PLIs under this scheme are the following participants Scheduled Commercial Banks (SCB), Housing Finance Companies (HFCs), Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks (Scheduled as well as Non-scheduled), Small Finance Banks (as approved by the Reserve Bank of India) and Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) (as registered with Reserve Bank of India) which have signed MoUs with any one of the Central Nodal Agencies (CNAs)
  • The eligible beneficiaries of the Pradhan Mantri Gramin Awas Yojana are provided with financial assistance to construct pucca housing in the rural areas.
  • The revised terms of the scheme provide that if the house is built in plains the revised amount that can be sanctioned is Rs. 1,20,000 and if it is built in a hilly region the same would be Rs.1,30,000.
  • The beneficiaries of the above scheme are also offered an employment of 90 days under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and another Rs.12,000 are offered for the construction of toilets.
  • The program aims to provide pucca housing of 25 sq.m. with basic amenities for the beneficiaries of the scheme.
  • The maximum principal amount that is eligible for subsidy is Rs. 2,00,000 and the interest subsidy allowed is 3%.
  • These houses have to be built in keeping in mind for them to be disaster resilient, of low-cost, taking into consideration the socio-cultural dynamics and as well as climatic factors of the place/region of dwelling.
  • The PMAY(U) scheme covers more than 4000 cities across the country under its purview, with a priority given to 500 Class-I cities, and the construction has been mapped in 3 phases as follows,
    • Phase-1 from April 2015 to March 2017 to cover 100 cities.
    • Phase-2 from April 2017 to March 2019 to cover additional 200 cities.
    • Phase-3 from April 2019 to March 2022 to cover the remaining cities

PMAY Subsidy Calculator

The government also provides the applicants to have a fair idea of the amount of subsidy that they can avail even before applying for the scheme. The interest on such loans is at subsidized rates and hence offers the eligible citizens affordable and subsidized loans.

The potential applicants have to fill the following details in the subsidy calculator on the official website of PMAY(U) to get the details of the proposed EMI.

  • The annual income of the household
  • The total loan amount in rupees 
  • The total loan period in months
  • If the house to be bought/constructed is their first pucca house

Once the above details are input on the website, the applicant will get the details of the subsidy applicable to them and also the category of the subsidy that they would fall into. Also, in case the scheme is not applicable to particular applicants based on the information input by them, the same will be displayed at the time of calculating the subsidy that can be availed.

Components of the PMAY(U) scheme

The scheme has a mandatory provision for the female head or member of the household to be the owner or co-owner of the house under the Mission. The scheme applies a huge range of options to broaden its scope in including maximum beneficiaries under its purview depending on their income, finance and availability of land. It has its selection process based on the following four options/categories.

“In-situ” Slum Redevelopment (ISSR) – 

Under Slum redevelopment, the government provides a Central Assistance of Rs.1,00,000 per house. This amount is admissible for all houses that are built for eligible slum dwellers under the component of In-situ Slum Redevelopment (ISSR) using land as Resource and is in participation of private developers. The States/UTs are free to utilize these slum rehabilitation grants for any of the slum redevelopment projects. Post redevelopment, the Mission guidelines recommend, rather require, the State/UT Government to issue a de-notification of slums.

Credit Linked Subsidy Scheme (CLSS) – 

According to the Mission guidelines, an interest Subsidy up to Rs. 2,67,000 per house is admissible for Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II that apply for housing loans from Banks, Housing Finance Companies and other such institutions for acquiring/constructing houses. The interest subsidies of 6.5%, 4% and 3% on loan amount up to Rs. 6,00,000, Rs. 9,00,000 and Rs. 12,00,000 respectively are admissible for a house with carpet area of up to 60, 160 and 200 sq.m. In case of EWS/LIG, MIG I and MIG II respectively. The benefit for EWS/LIG beneficiaries under CLSS works out to as high as Rs. 6,00,000 over a loan period of 20 years.

Affordable Housing in Partnership (AHP) – 

Central Assistance of Rs.1,50,000 per EWS house is provided by Government of India in projects where at least 35% of the houses in the projects are for EWS category and a single project has at least 250 houses.

Beneficiary-led individual house construction/enhancements (BLC) – 

As per this component, Central Assistance of Rs.1,50,000 is available to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own. This component aims to include those beneficiaries who are not able to take advantage of any other component of the Mission.

If the beneficiary has a pucca house with carpet area of up to 21 sq. m. area or a semi-pucca house, lacking in one of the facilities- i.e. room, kitchen, toilet, bath or a combination of these, it may be taken up for enhancement subject to ULB/State ensuring structural safety of the house and adherence to following conditions:

  • The total carpet area after enhancement must not be less than 21 sq. m and must not be more than 30 sq. m.
  • Enhancement shall mean addition of a minimum carpet area of 9.0 sq. m. in to the existing house with pucca construction of at least one habitable room or room with kitchen and/or bathroom and/or toilet conforming to NBC norms.

Contact details of the PMAY

The applicants and subscribers of the scheme can report any queries and concerns that they may have by contacting the authorities at the following contact details.

For PMAY(U) 

Address – Pradhan Mantri Awas Yojana (Urban)

     Ministry of Housing and Urban Affairs

     Nirman Bhawan,

     New Delhi – 110011

For PMAYG

FAQs

1. What is the sharing pattern of the cost of units that is to be shared between Central and the State Government for housing in rural areas?

The sharing pattern between the Central and the State Government with respect to the cost of the units in rural areas is given below.

  • In plain areas – 60:40
  • In North Eastern and Himalayan States – 90:10

2. What is the definition of new construction under the PMAY(U) Scheme?

The term new construction under the PMAY(U) scheme of the government includes the following and will be eligible for credit linked subsidy within the prescribed terms and conditions –

  • Purchase of a new construction house from a builder
  • Purchase of a new construction house from a developer
  • Resale of a new construction house from the seller
  • Self construction by borrower on owned land

3. What is the consequence in case the beneficiary is not able to complete the construction of the house post disbursement of subsidy under the scheme?

In case the beneficiary is not able to complete the construction of the house within 36 months post receiving the subsidy under the scheme for any reason, such subsidy has to be recovered back by the PLI (Primary Lending Institutions) and refunded to the CNA (Central Nodal Agencies) who has issued/released such funds.

4. What is the security that the beneficiary has to provide under the scheme?

The house that is purchased or constructed from the funds/subsidy received under the scheme is considered as a security against the loan as per the guidelines of the scheme.

5. Are the NRIs eligible for the benefits under the scheme?

The NRIs can be eligible for the benefits under the scheme provided they are eligible as per the guidelines of the Scheme as well as any other rules of the Government of India or RBI, if any, applicable to such NRIs.

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