Housing for All: PMAY to Expand with 3 Crore More Affordable Homes

The first Cabinet meeting of the Modi 3.0 government held on Monday took a key decision regarding affordable housing for Citizens. Under the Leadership of 3rd Time Prime Minister, the cabinet approved assistance to construct 3 crore additional rural and urban houses under Pradhan Mantri Awas Yojana (PMAY).

 

What is Pradhan Mantri Awas Yojna (PMAY)?

Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme by the Government of India to provdie access to affordable housing for the low and middle-income residents of our country. This scheme was launched on 25 June 2015. This scheme's main objective is to help eligible rural and urban families build houses with basic amenities. Under the Pradhan Mantri Awas Yojana, 4.21 crore houses have been completed for eligible poor families over the last 10 years.

This scheme helps people currently living in temporary houses to get pucca houses. Additionally, it also gives financial assistance to the people who own land and want to build houses.

The government provides subsidies on home loans under this scheme. The amount of subsidy depends and varies on the size of the house and the income level. The banks also offers home loans at low interest rates under this scheme. The maximum repayment period for home loans under this scheme is 20 years.

 

Cabinet Decision

This decision comes out in the light of increasing eligible families under Pradhan Mantri Awas Yojna. The scheme will meet the requirements of both rural and urban areas. It has been decided in the Cabinet meeting to aid 3 crore additional rural and urban households for the construction of houses. Of the 3 crore houses, 2 crores will be constructed under PMAY-Gramin, while 1 crore under PMAY-Urban.

In all the houses constructed under Pradhan Mantri Awas Yojana, other basic facilities like domestic toilet, LPG connection, electricity connection, domestic tap connection etc. are provided in coordination with other schemes of the Central Government and State Governments.

 

What to Expect from This Change

In the updated (PMAY-Gramin) program, the financial aid provided to housing units is expected to increase, moving from Rs 1.2-1.3 lakh to around Rs 2.3-2.4 lakh, due to rising costs. The government plans to construct an additional two crore affordable homes over the next five years.

The Central government will introduce an updated program for urban affordable housing, considering the rising costs. As a result, it might launch a new scheme worth Rs 60,000 crore to support the urban poor and middle class over a five-year period. This scheme could provide a subsidy of 3-6% on home loan amounts up to Rs 5 million, which is an increase from the previous scheme's limit of up to Rs 18 lakh.

The total area covered by the program is expected to be significantly larger under the new program compared to the previous Credit Linked Subsidy Scheme (CLSS) for the urban poor under the Pradhan Mantri Awas Yojana-Urban (PMAY-U). The coverage area under the CLSS scheme was 30-60 square meters (about twice the area of a parking space) for the economically weaker sections (carpet area 30-60 sqm), 4% and 3% for loan amounts between Rs 6,00,000 and Rs 12,00,000 and Rs 12,00,000 to Rs 18,00,000 respectively for beneficiaries in the MIG-I and MIG-II categories, for the purpose of buying or building houses (including the option to buy back).

 

PMAY Eligibility Criteria:

• The applicant's age must be 18 years or above to avail themselves of the scheme's benefits. The applicant must be a citizen of India.
• The PMAY scheme is available for families with an annual income up to Rs 18 lakh.
• The chief eligibility requirement for the PMAY scheme is that the individual should not own any pucca house before applying.
• The family member should not have a government job 
• Identity card, Address Proof, Income ratio and Property Documents are some of the documents which are required under this scheme
• The eligibility criterion of PMAY scheme is targeted to help economically weaker sections (EWS) and families/individuals who do not have a permanent house of their own. Under this scheme, subsidized interest rates and financial aid will be given to enable eligible applicants to acquire or build a pucca house.
• It is crucial that the beneficiaries have not availed themselves of any central assistance or benefits from any other housing scheme either from the state or the central government before applying for this scheme.

 

How To Apply for Pradhan Mantri Awas Yojna

Applicants can apply for PM Awas Yojana both online and offline. For online, applicants can follow following major steps:

Step 1: Visit PMAY official website - https://pmaymis.gov.in/

Step 2: Click on PM Awas Yojana on the homepage

Step 3: Proceed to register by providing all the mandatory information.

Step 4: Then upload the required documents

Step 5: Finally, review and submit your application

In order to apply offline, you can visit the nearest Common Service Center (CSC).

 

Features of PMAY Scheme

• The scheme offers an interest subsidy rate ranging from 0% to 6.5% on housing loans for all recipients, provided the loan term does not exceed 20 years. The rate of interest subsidy, however, is adjusted according to income brackets.
• For those earning up to Rs 6 lakh annually, a credit-linked subsidy of 6.5% is available for loans up to Rs 6 lakh.
• For individuals with an income up to Rs 12 lakh, a 4% interest subsidy is applicable on loans up to Rs 9 lakh.
• For those with an income up to Rs 18 lakh, a 3% interest subsidy is available on loans up to Rs 12 lakh.
• Any additional loan amount will be charged at a standard interest rate.
• Under the PMAY scheme, there is a special preference for individuals with disabilities or senior citizens to have their homes on the ground floor. The construction of these houses will utilize sustainable and environmentally friendly technologies.

 

Pradhan Mantri Awas Yojana Beneficiaries (PMAY)

The Priority and Principal Recipients of PMAY Are

1.  Scheduled Castes and Scheduled Tribes

2.  Economically Vulnerable Sections (EVS) within the community

3.  PMAY is relevant for individuals from the following categories:

a) Economically Vulnerable Sections (EVS - with an annual family income not exceeding Rs. 3,00,000)

b Low-Income Groups (LIG - with an annual family income not exceeding Rs. 6,00,000)

c) Middle-Income Groups (MIG - I & II - with an annual family income not exceeding Rs. 18,00,000)

 

Types of PMAY Scheme

There are two distinct categories of PMAY schemes available, namely PMAY-Urban (U) catering to urban residents and PMAY-Gramin (G) catering to rural residents. PMAY-G primarily aims to tackle the housing shortage in rural regions of India, while PMAY-U focuses on addressing the housing shortage in urban areas of the country.

 

Key Takeaways:

• 3 Crore Additional Homes: The PMAY scheme will be expanded to construct 2 crore rural houses under PMAY-Gramin and 1 crore urban houses under PMAY-Urban.
• Increased Financial Assistance: The financial aid for PMAY-Gramin housing units is expected to rise significantly to address rising construction costs. The government is also considering a new urban housing scheme with a subsidy of 3-6% on home loans.
• Focus on Amenities: All PMAY houses will include basic amenities like toilets, cooking gas connections, electricity, and water supply.
• Eligibility and Benefits: The PMAY scheme caters to families with annual income up to Rs. 18 lakhs. It offers interest rate subsidies on home loans, with varying rates depending on income brackets. Additionally, there's a preference for senior citizens and people with disabilities to have ground-floor houses.

 

Conclusion

PMAY scheme is an important step towards bridging the housing gap in India. With better financial assistance, wider coverage, and essential amenities, PMAY aims to empower middle class families to achieve the dream of owning a pucca house. However, efficient implementation and streamlined processes would be crucial for ensuring timely delivery of benefits to eligible beneficiaries.

To read about the Importance of Home Loan Insurance, you can check- The Important Role of Home Loan Insurance for New Home Buyers in 2024

 

FAQs:

1. Who is eligible for PMAY?

a) Economically Weaker Sections (EWS)

b) Low-Income Groups (LIG)

c) Middle-income groups (MIG-I and MIG-II) which is based on income criteria as per PMAY scheme

 

2. How to calculate subsidy amount?

a) Applicants can calculate the PMAY subsidy amount through the PMAY website. To check the same, they must select the annual family income, loan amount required, tenure and the carpet area. The eligible subsidy amount will be displayed on the screen.

 

3. What are the components of PMAY?

a) In-situ Slum Redevelopment

b) Affordable Housing through Credit-Linked Subsidy Scheme (CLSS)

c) Affordable Housing in Partnership

d) Beneficiary-led individual house construction/enhancement

 

4. How to check PMAY subsidy status?

a) Applicants can track their PMAY subsidy status offline by visiting the Grama Panchayat or Block Panchayat offices. Alternatively, they can also:

- Visit the Pradhan Mantri Awas Yojana CLAP website.

- Click on the ‘CLSS Tracker’ tab.

- Enter the Application ID and click ‘Get Status’.

- An OTP will be sent to your mobile number. You must enter OTP to check the status.

 

5. How to check PMAY Application Status?

a) Once an applicant has applied for the Pradhan Mantri Awas Yojana scheme, you can conveniently track the status of your subsidy. You can check the status of your PMAY subsidy in both online and offline processes with the application number or ID that you would receive at the time of applying for the PMAY scheme.

 

6. What are PMAY Customer Care Helpline Numbers

a) Pradhan Mantri Awas Yojana Gramin Online (PMAYG); Toll Free Number. 1800-11-6446 / 1800-11-8111

b) Pradhan Mantri Awas Yojana Urban Online (PMAYU); Phone No: 011-23063285 / 011-23060484 / 011-23063620

 

7. How long does it take to receive the subsidy amount?

a) It takes around 3 to 4 months for the subsidy amount from PMAY to be credited to the beneficiary’s account. This is subject to the verification process of the government.