Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana scheme was introduced on 25th June 2015 by the honorable Prime Minister Shri Narendra Modi. Also called ‘Housing for all by 2022’, this scheme is an initiative by the Ministry of Housing and Urban Affairs (MoHUA). It aims to provide housing facilities to the underprivileged section of our society. Its target is to assist 20 million families by constructing affordable houses by 31st March 2022. This scheme has two components. Pradhan Mantri Awas Yojana (Urban) for the economic sections in the urban areas. Pradhan Mantri Awas Yojana (Gramin) for the underprivileged in the rural areas. According to this scheme, the government ensures that every house has a toilet, electricity connection, LPG gas connection, and other basic amenities required by every Indian.

As you read along, this article provides a detailed guide to this scheme—the government proposed the eligibility criteria. The various features and benefits of this scheme have to offer to the common man. Let’s read it in detail.

Pradhan Mantri Awas Yojana-Urban

1. Under the urban division of the PMAY scheme, around 4,331 cities and towns across India are registered. This includes every authority that handles urban planning and regulations.

2. It has three phases of execution and completion.

• Phase l: Between April 2015 and March 2017, over 100 cities should be covered in the selected states and union territories.
• Phase ll: Between April 2017 and March 2019, another 200 cities should be covered.
• Phase lll: Between April 2019 and March 2022, the remaining cities would have to be covered.

Eligibility Criteria For Pradhan Mantri Awas Yojana- Urban (PMAY-U)

i. For the Middle Income Group l (MIG I), the income should be between 6 lakh and 12 lakh every year.

ii. For the Middle Income Group ll (MIG II), the income should be between 12 lakh and 18 lakh every year

iii. The beneficiary should not own a house in any part of India.

iv. The benefits of this scheme cannot be availed if the house is already constructed.

v. Senior citizens and the differently-abled are ensured accommodation on the ground floor of the newly built house.

vi. If the applicant is married, he can avail of this scheme’s benefits together with his spouse.

List Of Beneficiaries For PMAY-U

i. A beneficiary is a family comprising of husband, wife, and unmarried children.

ii. This includes EWS, LIG, MIG I, and MIG II. The annual income for EWS is below 3 lakh. For the LIC, the income should range between 3-6 lakh. For the MIGs, it is 6-18 lakhs.

iii. Beneficiaries belonging to the LIC and MIGs can only avail of the CLSS under PMAY.

Necessary Documents To Apply For PMAY-U

1. Application form: this can be downloaded from the official website and must be duly filled before submission.

2. Proof of identity: identity proofs are official documents like PAN card, Aadhar card, driving license, passport, voter id, or any other document which proves the identity of an individual.

3. Proof of address: passport, voter id, Aadhar card, resident certificate, or any other official document can be procured.

4. Proof of income: bank statement of 6 months, salary slip of last 2 months, etc. are required.

5. Property documents.

Features And Benefits Of Pradhan Mantri Awas Yojana For Urban Masses

Consider Mr. Naik is planning to buy an apartment worth Rs. 25 lakh. He belongs to MIG I and has already cleared the down payment worth 5 lakh and is looking for a suitable home loan to avail of the remaining 20 lakh. The interest rate charged here is 8.5% p.a. If he avails the PMAY, then under CLSS, he is entitled to avail a sum of 9 lakh at a subsidized interest rate of 4%. With the reaming 11 lakh bearing an interest rate of 8.5%

If it belonged to MIG II, he would be eligible for a loan amount of 12 lakh with an interest rate of 3% p.a with the remaining 8 lakh bearing an interest rate of 8.5% p.a.

This makes a significant difference concerning those who cannot avail of this scheme at all. It generates a huge amount of savings for the underprivileged.

Pradhan Mantri Awas Yojana Gramin

1. The Economically Weaker Section (EWS) and the Lower Income Group (LIG) are financially aided through this scheme

2. The beneficiaries can be from the villages, slums, and other rural areas except for Delhi and Chandigarh.

3. This scheme aims to aid the residents of the rural areas by constructing 4 crore houses by 2022.

4. This scheme is budgeted at Rs.81.97 crores.

Eligibility Criteria For PMAY-G

i. The annual income should be up to 3 lakhs to qualify for the Economical Weaker Section (EWS).

ii. The annual income should be between 3 lakh and 6 lakh for the Low Income Group (LIG).

iii. This scheme does not apply to the residents of Delhi and Chandigarh.

iv. Those living in the plains can avail of benefits up to 1.2 lakh. The masses residing in the North-Eastern hilly region can receive up to 1.3 lakh to construct houses. The ratio of contribution is 64:40 for those residing in the plains and 90:10 for those in North-East’s hilly areas.

List Of Beneficiaries For PMAY-G

• Scheduled castes and scheduled tribes.
• Non-SC and ST who are minorities Below Poverty Line.
• Widows and relatives of individuals kidded in action, ex-servicemen, and those under retirement.

Necessary Documents To Apply For The Pradhan Mantri Awas Yojana- Gramin (PMAY-G)

1. Application form: this can be downloaded from the official website and must be duly filled before submission.

2. Proof of identity: identity proofs are official documents like PAN card, Aadhar card, driving license, passport, voter id, or any other document which proves the identity of an individual.

3. Proof of address: passport, voter id, Aadhar card, resident certificate, or any other official document can be procured.

4. Proof of income: bank statement of 6 months, latest form 16 or salary slip in case of a salaried employee; balance sheet, profit, and loss account and IT returns along with computation for the last 2 months are required.

Features And Benefits Of Pradhan Mantri Awas Yojana For The Rural Masses

Now consider Mr. Redkar belonging to either of the above categories. He decides to buy a house worth Rs. 20 lakh. He needs a down payment of 4 lakh and decides to avail of a home loan worth 16 lakh at an interest rate of 8.5% p.a. If he avails the loan amount worth 6 lakh under the PMAY scheme, then he would be charged 6.5% p.a. With an interest rate of 8.5% p.a charged on the remaining 10 lakh.

Pradhan Mantri Awas Yojana Home Loan

Through this scheme, the beneficiaries can avail of loans. The loan amount allocated is different for masses belonging to different categories. The loan offered through the scheme has subsidized interest rates. This helps the underprivileged to construct houses at affordable rates.

The loan amount offered to the various categories are as follows:

Components Of The Pradhan Mantri Awas Yojana Scheme

1. In- situ’ Slum Redevelopment (ISSR).

Through this scheme, the redevelopment action of the slum is undertaken by granting a sum of Rs. 1 lakh to every slum dweller using land as the resource. The private organization involved in this scheme provides rehabilitation facilities to the displaced locals. Once the redevelopment of the area is complete, the houses’ prices are notified by the Central Government. The beneficiary contribution is decided by the respective state or the union territories.

2. Credit Linked Subsidy Scheme (CLSS)

The individuals belonging to the different economic sections are entitled to subsidized rates. The subsidy is offered on the interest on the loan amount.

The subsidized rates for all the sections of the society are given mentioned below.

3. Affordable Housing in Partnership (AHP)

The Central Government provides a sum of Rs.1.5 lakh to the Economically Weaker Section of the society to buy houses. Under this scheme, houses can be purchased by beneficiaries belonging to different categories, but at least 35% should belong to the EWS. The states and the UTs can join hands to develop these projects.

4. Beneficiary-led Construction/ Enhancement (BLC/BLE)

This scheme is for the EWS who cannot avail of the other 3 schemes. Through this scheme, the beneficiaries can avail of the financial help of Rs.1.5 lakh. This aid is used to construct a house or renovate the existing house.

5. Affordable Rental Housing Complexes (ARHCs) for migrant workers and urban poor.

To save housing costs during the ongoing pandemic, the urban migrants have resorted to staying in the slum and other unauthorized settlements. The Ministry of Housing and Urban Affairs has taken the initiative to launch Affordable Rental Housing Complexes (ARHCs). This scheme is under the Pradhan Mantri Awas Yojana, which aims to provide decent houses for rent at affordable rates.

This scheme is implemented in two methods:

• The vacant houses funded by the government are utilized. The public agencies assist in the conversion of the vacant houses to ARHCs.
• These public agencies are mandatorily supposed to construct, operate, and maintain the ARHCs. These public/private entities would later be provided with incentives by the government.

Eligibility Criteria Of The Pradhan Mantri Awas Yojana Scheme

To avail of the PMAY scheme, an individual has to meet certain eligibility criteria.

i. Upon the buying of a new property, this scheme can be availed. But the owner should not have any other property or own a house in any part of India.

ii. No other help or benefits should be availed by the applicant from the Central or State Government under any housing scheme before applying for this scheme.

iii. The property or house purchased should be located in any town or city specified by the Census 2011.

If the applicant wishes to renovate or extend his existing property through this scheme, this work should be completed within 36 months from the first loan installment.

v. This scheme can be availed to buy or construct new houses. It cannot be availed on already built houses.

vi. The property constructed or acquired through this scheme should be named after the family’s women. It can also be jointly named after the man and the woman head. If there is no female adult, then it can be named after the man of the house.

Merits Of The Pradhan Mantri Awas Yojana Scheme

1. It offers subsidized rates to every section of society.

This is a huge advantage to the beneficiaries of this scheme. The government offers this subsidy on new house purchases. Through the Credit Linked Subsidy Scheme (CLSS), the individuals under various categories can avail of the subsidized rates.

• Those belonging to the EWS and LIG category are relieved by 6.5% interest over the tenure of 20 years.
• For those belonging to MIG I, a 4% subsidy on the interest rate is applicable over the loan amount of 9 lakh.
• A 3% subsidy on the interest rate over a loan amount of 12 lakh is relieved for those under MIG II.

2. Housing facilities will now be available to every family.

Through this scheme, the government aims to develop our nation. This is possible by providing proper shelter to the underprivileged and the downtrodden. Over 2 crore houses are to be constructed in the urban and rural areas. This will benefit several households across the nation, especially the low and the middle- income groups.

3. Women and minority communities are uplifted.

The houses constructed under this scheme are named after the women head of the family. This is a necessary clause, and the house is named after her, even if she is not purchasing the plot. This privilege to become the homeowner is given to salaried women, widows, disabled, transgender people, senior citizens, and other minorities.

4. Houses are eco-friendly.

The houses constructed under this scheme are eco-friendly. The contractors are strictly instructed by the government to build houses using eco-friendly technologies and materials. This ensures minimum damage and pollution towards the environment.

How is the application to this scheme submitted?

The application for this scheme can either be submitted online or offline.

1. Online

• The portal www.pmaymis.gov.in is the official government website for this scheme.
• The applicants should go to the ‘Citizen Assessment’ section under the menu.
• Enter the Aadhaar number.
• After the successful submission of the number, the applicant will be redirected to the application form.
• Here the applicant should enter all the necessary details.
• After submitting the details, an application number is generated.
• The submitted form should be downloaded and deposited at the nearest facility offering this scheme.

2. Offline

Alternatively, the applicants can fill a form available through Common Service Center (CSC). This form is charged Rs.25, excluding the GST charges.

Tax Exemptions Under Pradhan Mantri Awas Yojana

While availing the subsidy on this scheme, according to CLSS, an individual can also claim several tax benefits under the Income Tax Act 1961.

1. Section 80C

Under this section, an individual can claim a deduction of Rs.1.5 lakh per year on the principal repayment of the loan amount.

2. Section 24(b)

This section allows a deduction of up to Rs.2 lakh per year on the interest to be paid on the loan amount.

3. Section 80EE

Those purchasing a house for the first time can claim tax exemption of up to Rs.50,000.

4. Section 80EEA

If the property comes under the affordable housing category, then deductions of Rs.1.5 lakh per year can be claimed by the applicants.

Current Situation Of The Pradhan Mantri Awas Yojana In India

As of the 27th of July 2020, this scheme’s following achievements have been attained in various parts of the country.

Construction of Houses:

Expenditure in crore:

Several sanctions from each component of PMAY:

FAQs

India is a developing country. Today in the 21st century, most Indians are leading a comfortable life. Yet many others are struggling for survival. The shelter is the basic necessity of man. With the soaring prices of real estate, owning a house is no longer easy. To assist the common man who cannot provide shelter for himself due to his financial condition, the government has taken this initiative. Through this scheme, the government aims to uplift the standard of living of every Indian citizen. By the end of March 2022, the Central Government’s target is to construct 2 crore affordable houses. The success of this scheme will be a huge step towards the development of our nation. You should check out Arogya Sanjeevani Policy and Pradhan Mantri Vaya Vandana Yojana.