What is Pradhan Mantri Awas Yojana? Everything you need to know

The crisis of housing is a very well-known problem in India. India has been battling overpopulation for decades. Urban slums suffer from improper sanitation and ventilation. Large numbers of people are completely homeless and have to sleep on roads and footpaths. There have been many projects undertaken by the government to deal with this problem of overpopulation and the crisis of urban housing.

Pradhan Mantri Awas Yojana (Urban) Mission is known as PMAY in short. This mission was launched on June 25 in 2015. The mission aims to secure housing for all in urban areas by the year 2022. The plan covers around 4300 cities across India. The implementing agencies that are located in states and Union Territories and Central Nodal Agencies receive assistance from the central government towards the realisation of the goal. The government has included several options to make the plan more inclusive. The aim is to accommodate as many people from different income and finance backgrounds as possible. The objective of the mission is to secure homes for about 1.12 crore people.

How does the scheme work?

Pradhan Mantri Awas Yojna or PMAY is a credit-linked subsidy scheme (CLSS). The subsidies apply to people belonging to Lower Income Group (LIG), Middle Income Group (MIG), and Economically Weaker Sections (EWS). This scheme is available only to persons belonging to these three income groups. People with an annual income higher than 18 lakhs per annum are not eligible for the Pradhan Mantri Awas Yojna. People who would take loans to buy land, residential property or build houses would be eligible to get interest subsidies on the credit amount.

Here is how the scheme works:

• The mandatory down payment needs to be cleared on loan.
• Out of the remaining amount, whatever is the eligible quantum amount, on it, the interest rate applied would be the subsidised one.

How are the various income groups divided?

To make assessment easier, people are classified into various economic groups, based on their annual income range. Here are the figures:

· MIG II – INR 12 lakh to INR 18 lakh per annum

· MIG I – INR 6 lakh to INR 12 lakh per annum

· LIG – INR 3 lakh to INR 6 lakh per annum

· EWS – Up to INR 3 lakh per annum

Here are some of the key provisions of the mission

· The goal of the scheme is to construct more than 2 crore houses in urban areas for people belonging to certain economic categories.

· The size of a residence for a person belonging to the Economically Weaker Section (EWS) could have a carpet area of up to 30 sq. mt.

· For MIG-I, the size of their residence can be up to 160 sq. mt. This is the maximum carpet area.

· The maximum carpet area for a house belonging to a person from the MIG-II group is 200 sq. mt.

· For MIG-I, the maximum quantum for subsidy out of the home loan is INR 9 lakh. On this amount, the maximum subsidy amount is INR 2.35 lakh.

· For MIG-II, the maximum quantum for subsidy out of the home loan is INR 12 lakh. On this amount, the maximum subsidy amount is INR 2.30 lakh.

· For MIG-I and MIG-II, the maximum tenure for home loan is 20 years.

· The states and Union Territories have the freedom to increase or decrease the size of the houses after consultation with the Ministry and getting their approval.

· There is a mandatory provision under this scheme that the female head of the family must be the owner or co-owner of the house built under the Pradhan Mantri Awas Yojana.

· The following are the rates of subsidy for different income groups:

1. LIG – 6.5% eligible subsidy

2. MIG I – 4% eligible subsidy

3. MIG II – 3% eligible subsidy

4. EWS – 6.5% eligible subsidy

· The scheme is divided into two types namely, Pradhan Mantri Awas Yojana (Urban) also called PMAY-U and Pradhan Mantri Awas Yojana Gramin or PMAY-G.

Pradhan Mantri Awas Yojana Gramin

The Pradhan Mantri Awas Yojana is not just a scheme for urban areas. The scheme also extends to rural areas. However, for the Pradhan Mantri Awas Yojana Gramin, only persons belonging to LIG and EWS are eligible. The rate of interest subsidy for both groups is 6.50%. For EWS, the maximum carpet area of their house can be 30 sq. mt. For LIG, the maximum carpet area for their house can be 60 sq. mt. The maximum quantum amount for the subsidy amount of the home loan is INR 6 lakhs. The maximum subsidy amount on the interest rate is INR 2.67 lakh. The maximum tenure for the home loan is 20 years for both the groups.

How to apply for Prime Minister Gramin Yojana?

The following steps are for applying to the Prime Minister Awas Yojana:

1. Log on to the official website of PMAY.

2. Click on the Menu tab

3. Select the option Citizen Assessment

4. Applicant must enter their Aadhar number where required

5. Once the submission of Aadhar number is successful, the applicant will be redirected to the application page.

6. The page will require the applicant to enter several relevant details such as income, bank details, personal details, etc.

7. Check all information has been entered correctly; then click on Save.

8. After saving, you will get your application number.

9. Download the filled-in form

10. This form is to be deposited at the nearest CSC office or any financial institution that offers PMAY.

11. All the required documents are to be submitted along with the form.

12. In case the online process is cumbersome for some, there is an offline route too. All one has to do is approach an authorised branch of a bank and apply under the scheme.

What are the documents required for availing Pradhan Mantri Awas Yojana?

There are two types of people who apply for the PMAY scheme namely, salaried and self-employed. Based on which category an individual belongs to, the documents required also vary.

For salaried individuals:

· Filled in application form downloaded from the website.

· Proof of identity such as Pan Card (mandatory) along with any other document like Aadhar Card, Voter ID card, Passport, Driving License, etc.

· Address proof based on documents like Aadhar Card, passport, Voter ID card, property tax receipts, rent agreement, utility bill, life insurance plan, etc.

· Income proof such as bank statements of the last 6 months, salary slip of last two months, IT Return or latest Form 16.

· Property documents such as an agreement to sell, the allotment letter or buyer agreement, property documents as required, copy of receipts showing any payments made to the developer.

For self-employed individuals:

· Address proof that shows existence of the business. Documents that can be provided are Shops and Establishment Certificate, SEBI certificate, PAN card registration certificate, sales tax, etc.

· Income proof based on documents such as ITR for the past two years, bank account statement of the last 6 months of both the bank account of the business and the personal bank account of the owner.

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FAQs

Q. Who is not eligible for the Pradhan Mantri Awas Yojana?

Only people belonging to EWS, LIG, MIG-I and MIG-II are eligible for subsidies under PMAY. This instantly disqualifies people with income above that of MIG-II. The annual income needs to be less than INR 18 lakhs per annum to be eligible for the PMAY-U scheme.

Q. Are there any other disqualifications under PMAY?

Ans: There are some other disqualifications to avail the scheme. For instance, only new property owners can avail the scheme. The applicants must not possess any other pukka houses while applying for the scheme.

Q. Can senior citizens avail any additional benefits?

Ans: The government will favour the claims of senior citizens if they request ground floor properties. This is extremely convenient for senior citizens.

Q. How successful has the PMAY-U been?

The PMAY-U has been mildly successful, according to a July 2019 survey. With only two years to go, till the expiration date, the scheme is likely to be unable to reach its target. The statistics are as follows:

· Completed houses – 26.08 lakh

· Occupied houses – 23.97 lakh

· Approved projects – 83.63 lakh

· Total estimated subsidies – INR 4.95 lakh crore

· Total subsidies provided – INR 51,000 crore

Q. Can applicants avail multiple central assistance schemes together?

The beneficiaries of Prime Minister Awas Yojana must ensure that they have not taken help from any other housing scheme from any state or central government.

Q. What is the maximum tenure for the PMAY scheme?

Ans: The maximum tenure for the scheme is 20 years.