All there is to know about the Pradhan Mantri Awas Yojana

PMAY stands for Pradhan Mantri Awas Yojana which was launched in June 2015 aims to fuel the concept of ‘housing for all'. Brought to action by the Narendra Modi government, this scheme proposes to build 2 crore houses by 2024 for the urban and rural population of India. The policy is meant to promote affordable housing for those belonging to economically weaker sections of society and low-income groups.

PMAY Scheme Mission

The broader mission of this scheme encompasses 4 components:

• In-site slum redevelopment with private sector participation using land as a resource
• Affordable housing through Credit Linked Subsidy
• Affordable housing in partnership with private and public sector and
• Beneficiary-led house construction/ enhancement

Read on to know how you fit into these parameters and how you can gain from PM Yojana.

Understanding Pradhan Mantri Awas Yojana

PMAY is a scheme that has been designed to make housing affordable for Indian citizens. This initiative aims at developing India’s housing sector in many ways, such that the entire population can benefit from subsidised home loan interest rates. This scheme also promotes the use of eco-friendly building materials used for the construction of homes. PMAY scheme has two major sections: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and Pradhan Mantri Awas Yojana (Gramin) (PMAY-G and PMAY-R). PMAY-U is applicable to the urban population, while PMAY-G and PMAY-R are applicable to the rural population. PMAY-U consists of three schemes, namely: EWS (Economically Weaker Sections)/ LIG (Low Income Group), CLSS (MIG-I) and CLSS (MIG-II). Read on to understand the functioning of PMAY-U in detail.

PMAY-U

PMAY-U stands for Pradhan Mantri Awas Yojana – Urban is operated by the Ministry of Housing and Urban Affairs and is responsible for providing affordable houses in urban India.

PMAY - U covers all towns as mentioned in the 2011 Census. Areas under the jurisdiction of an urban development authority, special area development authority, industrial development authority, planning/ development authority, and any authority under a state government will be covered by this scheme.

Progress of PMAY – U

• Houses sanctioned – Rs. 88 lakh
• Houses completed – Rs. 26 lakh
• Houses occupied – Rs. 24 lakh
• Total investment – Rs. 5.20 lakh crore
• Central assistance sanctioned – Rs. 1.37 lakh crore
• Central assistance provided – Rs. 52,000+ crore

The progress of PMAY – U will take place in three phases

• April 2015 to March 2017 - Phase I; covering 100 cities from chosen states and UTs
• April 2017 to March 2019 – Phase II; covering 200 additional cities
• April 2019 to March 2022 – Phase III; covering rest of the cities
  

PMAY-G

The Pradhan Mantri Awas Yojana Gramin is operated by the Ministry of Rural Development and is responsible for developing affordable houses in rural India. Delhi and Chandigarh are the only two places not under this scheme.

The primary objective of PMAY - G is to provide pucca houses to the homeless and those living in dilapidated and kutcha ones.

Financial assistance provided by the Central and respective State Government will be shared per the following:

• Plain areas – 60:40
• Special category states – 90:10

Every house constructed under this scheme shall have a toilet. Additionally, the scheme will also aim at providing LPG gas, electricity, piped drinking water, and other facilities.

Progress of PMAY – G

• Houses sanctioned – Rs. 1.23 crore
• Houses completed – Rs. 84 lakh
• Central assistance released – Rs. 8 lakh
• State assistance released - Rs. 1.5 lakh

The Pradhan Mantri Awas Yojana – Gramin was previously known as the Indira Awas Yojana. The scheme was revamped in March 2016.

What are the basic features of PMAY?

• Subsidy of 6.5% on home loan interest rate for a term of 20 years
• Compulsory ground floor housing accommodation for senior citizens and the differently-abled
• Mandatory use of eco-friendly materials for building construction
• Extending scheme coverage to include all urban areas in India
• Encouraging women to become home owners by making it mandatory to register a property with both the male and female heads of family unless there is no female family member
  

Eligibility criteria for Pradhan Mantri Awas Yojana

Who can apply for PMAY?

The eligibility criteria for PMAY varies according to the category you fall into based on the parameters set under the 3 different schemes. These parameters are primarily set keeping your income, position on the economic strata, and your housing needs in mind. Here is a detailed explanation of each scheme.

Under EWS/ LIG scheme

• You must have an income of up to Rs. 3 lakh per annum
• You must not have an income of more than Rs. 6 lakh per annum
• You can avail of the scheme anytime between 17th June 2015 to 31st March 2022
• You can choose carpet area of 30 sq. mts. as a EWS beneficiary and 60 sq. mts. as a LIG beneficiary. The carpet area will count as any floor space within the house, excluding external walls but including internal partition walls
• Your age at the end of the repayment period must be less than 70 years. The maximum repayment tenor of the loan is 20 years
  

Under CLSS (MIG-I) scheme

• Your income must range above Rs. 6 lakh to a maximum of Rs. 12 lakh
• The subsidy of 4% applies to up to Rs. 9 lakh only, so if a lender approves a loan higher than that, the extra amount will not be linked to the subsidy
• The total carpet area of the chosen home, excluding external walls and including internal partition walls, must be up to 120 sq. mts
• Despite the loan term being 20 years, banks can sanction 30 years if your age at the end of repayment is less than 70 years
• The total deduction, including home loan EMI, cannot be more than 50% of your gross income
  

Under CLSS (MIG-II) scheme

• Your income per annum must be above Rs. 12 lakh and cannot exceed Rs. 18 lakh. Even if your bank sanctions a higher loan amount, the credit-linked subsidy at 3% is limited to Rs. 12 lakh only
• The loan term is 20 years; however, banks can sanction 30 years if your age remains less than 70 years at the end of the repayment

A few general rules that apply consistently for these three PMAY schemes are:

• You cannot apply for this scheme if you or any member of your family already owns a house in any part of India. A husband, wife, and unmarried children are counted as one family unit in this context
• You cannot avail of this scheme if you have already availed and purchased a home under any central- or state-assisted housing scheme
• A couple cannot avail this scheme separately; either one or both jointly can apply for it
• An independent adult belonging to a family unit will be considered eligible for the loan in case they prove to be the head of a separate family unit, disregarding their marital status
• You can use this scheme to fund your repairs and renovations
• Linking of Aadhaar card is mandatory when you are making an application
• This scheme cannot be clubbed with special loan offers put forward by the banks
• The location of the house you choose must be one among the approved government listing of towns as per the 2011 census. You can even choose an approved adjacent planning area; however, keep a tab of the updated lists to find more inclusions
• You will require an adult female to be listed in membership and ownership of the home
• In case you are unable to repay the loan, the house will qualify as a Non-Performing Asset (NPA), which gives the lender the right to recover the due amount. Procedures for the same will lead to foreclosure of your home or property
  

Who cannot apply for PMAY?

Not all cities in India find a place on the central government’s approved list for PM Yojana. The central government has selected 4304 cities across 35 states and union territories in India where PMAY Urban is valid. To avail PMAY subsidy, your city should be covered under the central government approved list for PMAY. You can check if your area is listed on the website of the Ministry of Housing and Urban Affairs.

What is Credit Linked Subsidy Scheme (CLSS)?

The Credit Linked Subsidy Scheme (CLSS) is one of the four primary components of the Pradhan Mantri Awas Yojana (PMAY).

The objective of the Credit Linked Subsidy Scheme is to provide subsidies on home loan interest. The subsidy percentage available to the beneficiaries is mentioned below –

Eligible home loan amount

• LIG – Up to Rs. 6 lakh
• EWS – Up to Rs. 6 lakh
• MIG I – Up to Rs. 9 lakh
• MIG II – Up to Rs. 12 lakh
  

Eligibility criteria to avail CLSS

• Beneficiaries must not own a pucca house under their or any other family member’s name
• Beneficiaries must not have availed the benefits of any other government-sponsored housing scheme
• As of February 2019, the government has disbursed Rs. 8,300 crore subsidy to Rs. 3.7 lakh beneficiaries under the PMAY CLSS
  

How to apply for PMAY scheme

1. Determine your eligibility based on the PMAY beneficiary list and identify the scheme that you are eligible for
2. Keep your Aadhaar card details handy as this is mandatory to ensure there is no duplicate application under your name
3. Equip yourself with your savings bank account details
4. Calculate to keep your current household income information ready
5. Log on to the official PMAY website
6. Click on ‘Citizen Assessment’
7. Click on ‘Benefits under other 3 Components’
8. Enter your Aadhaar number without spaces in the provided box and click ‘Check’
9. Upon entering the correct Aadhaar number, you will be provided with a PMAY application form. Fill it with accurate personal, contact, bank account, income and Aadhaar information
10. Tick the box stating you are aware of any claims etc. and enter the security captcha
11. Click on ‘Save’
12. You will be provided with an application number. Save or print it for future reference

What is the process to apply for PM Awas Yojana?

You can apply for PMAY both online and offline. For online procedures, follow the above steps. To apply offline, you can visit the local branch of a PMAY Yojana listed bank. Remember to carry your income proof along with you while undertaking this visit. Once you receive approval, you can continue with selecting your property and finalising the purchase deal on a subsidised rate of interest.

What documents do you need to apply for PMAY?

Applying under the PMAY schemes is easy as long as you fit the broader criteria mentioned for each scheme. To submit a complete PMAY Yojana application, you will have to be very thorough with the documents that prove your PMAY.

Here is the list of documents that you will need for PMAY:

• Accurately filled PMAY application form
• Identity proof (Aadhar Card/ PAN Card/ Driving License / Voter's ID Card)
• Copy of address proof
• Income Certificate (self-attested) and proof of income (salary slip etc.)
• Form 16/ latest IT return
• Bank account statement (last 6 months)
• Affidavit claiming that you or your immediate family do not own any house in India
• Valuation certificate for the property you intend to buy
• Construction agreement with the developer or builder
• Approved plan of construction
• Certificate for architect or engineer confirming the cost of construction/ repairs
• Architect’s certificate mentioning the fitness of the house
• NOC from Competent Authority or any Housing Society
• Receipt of advance payment made for the purchase
• Letter of allotment of property/ agreement, or other property documents
  

How do I check my PMAY status after applying?

Once you have successfully applied, you can track the assessment and status of your application on the PMAY portal. You will need to input your assessment ID to derive the status. If you do not have access to the ID, you can choose the alternate option and use the details such as your name, father’s name, and your ID type to check your PMAY subsidy application status.

Additional Read: 5 easy tips to get your home loan approved instantly

With the compulsory mandate regarding property ownership involving a female family member under the PMAY subsidy scheme, there has been a significant increase in women home buyers in India over the last two years. Apart from this, the affordability of the PMAY schemes has also been amplified with GST being brought down from 12% to 8% for home buyers. So, check your eligibility and seek a home loan sanction to avail the key benefits of the Pradhan Mantri Awas Yojana.