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The Pradhan Mantri Awas Yojana is a government scheme that was formed by India’s Prime Minister, Narendra Modi. The government has planned to provide housing for all Indians by 2022.
In April of the year 2015, Narendra Modi undertook an accommodation contribution program called PMAY-CLSS. This program is designed to provide inexpensive housing to all Indians. The scheme was specifically designed for those who live below the poverty line.
Eligibility criteria for this scheme are changed depending on your state of resident and your income range. The banks provide loans at an extremely shorter interest rate due to the fact that the government pays the rest on behalf of the applicant. This government loan scheme helps low-income families to purchase a home.
The Pradhan Mantri Awaas Yojana Gramin (PMAYG) was presented with the thought to raise the Housing For All scheme. The central government arrived with the concept to complete the ‘Housing for All’ scheme by the year 2022.
Components of PMAY Scheme:
Pradhan Mantri Awas Yojana Urban consists of three schemes depending on the individuals belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG), or Middle Income Group (MIG). 4 components of the PMAY scheme are as follows-
- “In-situ” Slum Redevelopment (ISSR) using Land as Resource
This is the most crucial element of the “Pradhan Mantri Awas Yojana Urban – Housing for All” mission. The approach aims to redevelop slums by using land as a resource with the participation of the private sector. The mission aims to leverage the locked potential of land under slum areas and make houses on it for eligible slum dwellers bringing them into the formal urban settlement.
- Affordable Housing through Credit-Linked Subsidy
CLSS is the most important benefit of the PMAY scheme. This enables beneficiaries of the Economically weaker section (EWS), Low-Income group (LIG), Middle-income group (MIG-1), and (MIG-2) to receive home loans for construction or acquisitions at much lower interest rates. The scheme beneficiaries are eligible for interest subsidy if they want a loan to buy or construct a new house or even want to add rooms, kitchens, or washrooms to existing dwellings as incremental housing.
Under this scheme, the government will provide interest support of 6.5%, 4%, and 3% on loan amounts of 6 lakh, INR 9 lakh, and INR 12 lakh.
- Affordable Housing in Partnership (AHP)
The government has also backed the scheme of affordable housing in partnership with the private and public sectors. This scheme aims to provide affordable housing to the economically weaker sections. Priority in funding may be given to people with physical disabilities, senior citizens, SCs and STs, and other backward weak sections of the society. Projects under AHP to have a minimum of 250 houses with at least 35% houses of the EWS category.
- Subsidiary for Beneficiary-led Construction or Enhancement
This component assists families of the EWS category to improve their current houses or construct new ones. It focuses on providing financial assistance to EWS houses being built in various partnership models by States or Union Territories. Each EWS house is provided with central assistance of INR 1.5 lakh.
Along with all these components, a new component was added post-Covid. On 14th June 2020, the Union cabinet understood the need for affordable rental housing schemes – basically a sub-scheme under PMAY Urban.
Pradhan Mantri Awas Yojana Eligibility:
Every applicant must have to fulfill the PMAY board’s eligibility criteria. It is important to complete the eligibility criteria to acquire a home or financial asset from the government. Let’s take a look at the board’s eligibility criteria-
- Economically Weaker Section (EWS): The yearly income of the individual must have to be less than Rs.3 lakh to come under the category of EWS. However, to verify their claims, the government demands proof from an applicant claiming to be from EWS.
- Light Income Group (LIG): The yearly household income of the individual must have between Rs.3 lakh to Rs.6 lakh to come under the category of EWS. They must also submit acceptable proof to support their financial condition in order to be viewed.
- Medium Income Group (MIG1): Individuals with yearly household earnings of less than Rs.12 lakhs are eligible for the MIG1 program. Loans of up to Rs.9 lakh are available for the construction of a house for these applicants.
- Women: Women who fall into one of the EWS/LIG categories will be eligible for the Pradhan Mantri Awas Yojana scheme.
- A few more basic criteria are supposed to be achieved. For instance, a husband, wife, and unmarried children must all be included in the case of a beneficiary who is a family. Also, no family member should have a home in his or her name.
Pradhan Mantri Awas Yojana Document List:
Documents required to apply for the PMAY scheme are as follows-
- Aadhaar number
- Consent document to use Aadhaar on behalf of the beneficiary
- MGNREGA-registered beneficiary job card number
- Swachh Bharat Mission (SBM) number of the beneficiary
- Bank account details
Eligibility Criteria for Beneficiaries:
- A husband, wife, and unmarried children will all be part of the beneficiary family. A single adult earning member of a household can be regarded as a separate family.
- In the possibility of a married couple, only one partner or both together in joint ownership may receive a single house, dependent on their earnings.
- The unit should be named after the woman head of the family.
- If the male head of the house and his wife are involved then the unit should be the joint name.
- If there is no adult female family member, the home may be named after the male resident.
- The recipient family should not own a well-built house in any part of India, either in their own name or that of another member of the household.
Here’s how beneficiaries are defined under this scheme as per their annual income. Also, check out the Pradhan Mantri Awas Yojana subsidy that you can get on home loans taken for purchasing houses under this scheme-
| Income Group | Annual Household Income | Subsidy calculated on a maximum loan amount of | Subsidy available on home loan interest rate | Maximum subsidy available |
| Economically Weaker Sections (EWS) | Under Rs.300,000 | Rs.600,000 | 6.50% | Rs.267,000 |
| Low Income Groups (LIG) | Rs.300,000 to Rs.600,000 | Rs.600,000 | 6.50% | Rs.267,000 |
| Middle Income Group 1 (MIG 1) | Rs.600,000 to Rs.12,00,000 | Rs.900,000 | 4% | Rs.235,000 |
| Middle Income Group 2 (MIG 2) | Rs.12,00,000 to Rs.18,00,000 | Rs.12,00,000 | 3% | Rs.230,000 |
Pradhan Mantri Awas Yojana Status:
Individuals can check the PMAY status by visiting Pm Awas Yojana Status. After that, you can check your assessment status by filling in the appropriate information online.
Pradhan Mantri Awas Yojana Home Loan:
The top 10 banks in India which offer loans under the Pradhan Mantri Awas Yojana scheme are as follows-
- Bank of Baroda
- State Bank of India
- Axis Bank
- ICICI Bank
- IDFC First Bank
- Bandhan Bank
- Bank of India
- HDFC Bank
- IDBI Bank
- Punjab National Bank
- Canara Bank
Pradhan Mantri Awas Yojana Customer Care Helpline Numbers:
- 1800-11-6163 (Urban, HUDCO)
- 1800-11-3388 (Urban,NHB)
- 1800-11-3377 (Urban,NHB)
- 1800-11-6446 (Gramin)
Check out the Pradhan Mantri Awas Yojana form pdf and apply online.
Here, we cover a small piece of information about the Pradhan Mantri Awas Yojana. For the application process and to know more about the PMAY and other schemes you can visit the Pradhan Mantri Awas Yojana official website. Stay tuned to get notified about the other Government schemes.