The Pradhan Mantri Awas Yojna (PMAY) scheme is an ambitious plan launched by the government of India to provide affordable housing to all citizens by 2022. Introduced in 2015 by Prime Minister Narendra Modi, the scheme intends to address the issues of lack of accommodation facility to the rapidly growing urban population by encouraging the builders to build affordable homes and provide subsidies on home loans.
The basic eligibility conditions for PMAY are
- The recipients should not own any other pucca house
- The recipients must not have received assistance from any other central housing scheme
- The recipients can avail the benefits for purchase or construction of a new home.
Who Can Benefit from PMAY?
- Low-income Groups (LIGs) with an annual income of Rs. 3 to 6 lakhs
- Middle Income Groups (MIGs) with an annual income of Rs. 6 to 18 lakhs
- Economically Weaker Section (EWS) with a maximum annual income of upto 3 lakhs rupees
MIG is further classified into MIG – I and MIG-2 with an income range of 6 to 12 and 12 to 18 lakhs respectively.
What is CLSS?
Credit Linked Subsidy Scheme (CLSS) can be used by LIG and MIG groups to get interest subsidies on home loans. Complete assistance is provided only to EWS category while LIG and MIG groups can enjoy the subsidies. The banks granting the home loan can claim the subsidy for the borrowers from National Housing Bank (NHB).
PMAY Scheme Details
Here are some of the crucial details of PMAY
- Interest Subsidy
o 6.50% p.a. for EWS and LIG.
o 4.00% p.a. for MIG-I
o 3.00% p.a. For MIG- II
- Maximum Loan Tenure
Loan tenure can be up to 20 years for all groups.
- Qualifying Loan Amount for Subsidy
Maximum home loan amount eligible for subsidy is
o Rs.6 lakhs for EWS and LIG
o Rs.9 lakhs for MIG-I
o Rs.12 lakhs for MIG-II
- Maximum Unit Carpet Area
○ 30 sq. m for EWS
○ 60 sq. m for LIG
○ 160 sq. m for MIG-I
○ 200 sq. m for MIG-II
- NPV of Interest Subsidy
Net present value (NPV) discount rate is calculated at 9.00% for all groups.
Salient Features of PMAY
- Construction of all houses under the PMAY scheme is done using eco-friendly and sustainable technology
- Senior citizens and differently-abled individuals are given preference to occupy homes on the ground floor
- About 4041 statutory towns are covered under the scheme
- The scheme is implemented in three phases
- Initially targeted for only the EWS and LIG groups, PMAY scheme extended assistance to middle-income groups too. The scheme aims to get rid of slums by providing pucca houses with proper sanitation and living conditions for slum dwellers.
How to Apply for PMAY
Visit http://pmaymis.gov.in/ and enter the required details, including your Aadhaar number. Submit the duly-filled application form to lending institutions while requesting a loan under Pradhan Mantri Awas Yojana. The lending agency will forward the application to the Central Nodal Agency, which will disburse the subsidy amount after verification.