A guide to Pradhan Mantri Awas Yojana Scheme

Pradhan Mantri Awas Yojana, also called PMAY, refers to an Indian initiative that aims to make housing affordable to all by the year 2022. Initially launched on June 1st, 2015, it is a Credit Linked Subsidy Scheme (CLSS), as per which you can get the interest subsidy after availing the loan or purchasing or constructing the home. The mission of this scheme is to provide houses for all.

Based upon the region it caters to, the scheme has 2 major parts, namely Pradhan Mantri Awas Yojana U (urban) & PMAY G (Gramin). Let us know more regarding it.

Pradhan Mantri Awas Yojana (PMAY-U) urban

Nearly 4,331 towns and cities fall under this scheme. It involves all authorities liable for regulating and planning urban areas of India, like urban development authority, development area, industrial development authority, notified planning, special area development authority etc.

This scheme intends to go ahead in 3 phases:

Phase 1: Cover 100 cities in the chosen states and UTs between April 2015 and March 2017

Phase 2: Cover 200 more cities between April 2017 and March 2019

Phase 3: Cover the remaining cities between April 2019 and March 2022

As per the data by the Housing & Urban Affairs Ministry, the scheme’s progress in all union territories and states as of July 1st, 2019, is as listed:

       63 lakh sanctioned houses

       97 lakh occupied houses

       08 lakh completed houses

52nd Central Sanctioning & Monitoring Committee (CSMC) meeting was held on January 20th, 2021. According to the Ministry of Union Housing & Urban Affairs, the government has approved the construction of about 1.68 lakh houses as per the PMAY – urban scheme.

PMAY – G (Gramin)

Previously known as Indira Awas Yojana, this scheme was renamed PMAY – G in the year 2016. The scheme aims to make housing affordable in the rural portion of India except in Delhi and Chandigarh. Homeless individuals and those residing in crumbling homes can acquire financial assistance as per this scheme for constructing pucca houses.

Those residing in the plains may get up to Rs 1.2 lakh, while the ones residing in IAP, hilly areas, tough regions, and northeastern portions may get up to Rs 1.30 lakh. According to the Rural Development Ministry, about 1,03,01,107 houses are sanctioned in the union territories and Indian states as per the scheme.

Features and advantages of the PMAY scheme

Major features and benefits of the scheme are as listed:

       A subsidized Best Home Loan Interest Rates equals 6.50 percent per annum if the beneficiary avails a home loan of up to 20 years of the loan tenure.

       3 – 4 percent of the interest subsidy provided to the middle-income group (MIG) for the home loans to construct or acquire a home involving the repurchase.

       All the urban regions, including the statutory towns, are covered under the scheme with priority given to 500 class I cities.

       Eco friendly and sustainable technology to be utilized for the construction.

       Preference for the ground floor to senior citizens and differently-abled individuals.

Eligibility conditions for availing of the scheme benefits

The loan model subsidy aims at assisting the economically weaker class in owning a home. So, here are some of the eligibility conditions you must meet:

       Applicants or the family of the applicant should not have a pucca home in any portion of the country. Family involves husband, wife, unmarried daughter, or son.

       Individuals with an annual income of up to Rs 18 lakh are eligible for the scheme.

       The benefits of PMAY are unavailable to the already constructed houses.

       Married applicants can take up a single home loan subsidy just for joint or single homeownership.

       Applicants, along with their families, should not receive any benefit from other home linked schemes from the government.

To avail of a financial reinforcement or house from the Indian government, every seeker requires meeting the eligibility parameters set by the PMAY committee.

Beneficiaries’ categories

Beneficiaries of PMAY can be divided into 6 categories:

EWS: Those with an annual income of Rs 3 lakh.

LIG: Those with an annual income of between Rs 3 lakh and Rs 6 lakh.

MIG 2: Those with annual income between Rs 12 lakh and Rs 18 lakh.

MIG 1: Those with an annual income of Rs 12 lakh.

Minorities: The scheme’s beneficiaries involve candidates according to the caste census and socio-economic data. These involve the listed:

       Scheduled tribes

       Scheduled castes

       Minorities & nonscheduled caste and scheduled tribes as per BPL

       Freed bonded labourers

       Kin & widows of the ex-servicemen and those as per the retirement scheme

       Widows and kin of paramilitary forces

Women: Women under the LIG and EWS categories

Application procedure

For eligible beneficiaries of the PMAY scheme, you get 2 options:

After the verification is complete, place it in your personal details to save it. Once done, the application form that you will get will be system generation that you should save for any future reference.

Offline: Approach the common service centre and avail the scheme’s form, fill that up and submit it.

Crucial documents required for placing the application

Here are some of the documents you must submit when placing the application:

       Signed application form

       Property linked documents such as the sale agreement or the deed of sale, NOC from builder or society, allotment letter etc.

       Identification proof like your driving license, Aadhaar card, PAN card, Voter ID etc.

       Address proof such as your voter card, passport, rent agreement, Aadhaar card or the latest utility bills.

       Income proof

       For the salaried employees: Past six months income slip, or past six months bank statement.

       For the self-employed: Profit and loss account, balance sheet, income tax returns, computation etc.

PMAY has played a vital role in making housing affordable for all. Besides this, the scheme even aims at forming ample jobs in the real estate industry Read More

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