• The Government of India has launched Pradhan Mantri Awas Yojana to provide affordable housing scheme benefits for the citizens, particularly those from the economically weaker section of society.

What is Pradhan Mantri Awas Yojana?

• Pradhan Mantri Awas Yojana is a government-backed special credit-linked exclusive subsidy program that facilitates easy access to budget-friendly housing, particularly for the nation’s low and middle-income groups, including urban migrants, individuals in the informal urban economy, as well as those in the industrial sector. This is the flagship program the Government of India launched in 2015 to guarantee affordable housing options for everyone, particularly the underprivileged sectors.

Key features of Pradhan Mantri Awas Yojana

Several notable features of the esteemed PMAY program include:
1. Delivering affordable homes to slum dwellers in partnership with certain specific private developers, provided they are involved in the PPP model.
2. Providing economical housing solutions to the economically disadvantaged section of society through the exclusive Credit Linked Subsidy Scheme under PMAY.
3. Constructing affordable housing through fruitful collaboration with the private sector.
4. Offering subsidies to all qualifying beneficiaries for house construction and development.

Eligibility criteria for Pradhan Mantri Awas Yojana

According to the current guidelines of the Ministry of Housing and Urban Property Alleviation (MHUPA), the eligible beneficiaries of the PMAY program must meet the following specific criteria:
1. The relevant beneficiary can be the spouse (husband or wife) and their unmarried children (son or daughter).
2. The relevant beneficiary must not own any “pukka” house, and the residence in which he/she lives cannot be in his/her name or the name of any other family member throughout the nation.
3. Any specific adult, whether unmarried or married, can be considered a separate household, depending on the specific situation.
4. The beneficiary can belong to MIG I, with a total annual income between INR 12 lakhs and INR 18 lakhs; the MIG II category, with an annual income between INR 3 lakhs and INR 6 lakhs; LIG, with an annual income ranging from INR 3 lakhs to INR 6 lakhs; or the EWS or the Economically Weaker Section, with a total annual income of up to INR 3 lakhs.

Pradhan Mantri Awas Yojana scheme components

There are 4 specific components in the PMAY scheme:

1. Credit Linked Subsidy Scheme

2. In-situ Slum Redevelopment
This has been implemented to efficiently redevelop slums in partnership with private organizations and developers. Under this specific program, eligible slum residents receive special financial aid of INR 1 lakh for constructing houses.
The private investors are chosen through a fair bidding process. The residents will have a temporary accommodation option during the construction and building phases.

3. Affordable Housing Partnership
This scheme enables the Union Government to offer financial support of up to INR 1. 5 lakhs to the EWS for purchasing and building homes. The respective states and UTs can undertake these initiatives in collaboration with private organizations.
Here, the respective state or UT must establish the optimal limit for the unit price for purchasers under EWS. The carpet area is taken into account for assessing the value of the built houses to ensure they remain affordable. Without the involvement of any private party, these homes will not have any profit margin. The respective state or UTs will determine the final sale price with full transparency as per the State/Centre/ULB incentives. The Central grant specifically pertains to housing projects that constitute 35% of the total number of units constructed for EWS.

4. Beneficiary-led individual house construction/enhancements
In this scheme, the Centre will provide unit support for plain areas ranging from INR 70,000 to INR 1. 20 lakhs, while for hilly and rugged regions, it is INR 75,000 to INR 1. 30 lakhs. The beneficiary is required to submit all necessary personal identity documents and proofs as required to the specific ULBs. The state will oversee the program using specially geo-tagged photographs.

The application process for Pradhan Mantri Awas Yojana

PMAY permits both online and offline applications.

Online
1. First, go to the official PMAY website.
2. Click on the “Citizen Assessment” option that is listed in the Menu.
3. Next, the applicant should input their Aadhaar number.
4. Then, it will automatically redirect, and the application page will appear.
5. Fill in all the required details as necessary, including income information, bank details, personal information, etc.
6. After verifying, click “save” to receive the unique application number.
7. Download the application form which you have completed for future reference.
8. Afterwards, you can submit this form along with all pertinent documents at your nearest bank branch providing a home loan, CSC office, or other financial institution.

Offline
For an offline application, visit the nearest financial organization, CSC office, or any bank branch that offers a housing loan facility to collect the form.
Carefully fill out and sign the form, including all relevant details.
Submit the form along with necessary documents, such as your consent for using Aadhaar information, an affidavit affirming that neither you nor any family member owns any “pukka” house anywhere in the country, government-issued photo identity proof, bank account information, Swachh Bharat Mission registration details, and job card information as per registration under MGNREGA (as applicable).

How does PMAY work?

• The applicant and the recipient can access a home loan facility along with a PMAY subsidy. You may also consider investing in a home insurance policy to secure your valuable real asset. Home insurance can safeguard your property from unforeseen damages by serving as a protective barrier.
• The PMAY subsidy is categorized based on the economic status of the beneficiary: EWS, LIG, MIG I, and MIG II.
• The government distributes the sanctioned subsidy amount in stages. NHB and HUDCO cover the subsidy interest rates for these loans.
• You are required to pay 20% of the total property value as a down payment, with the remaining amount being financed through loans. Beneficiaries in the MIG II category are eligible for a 3% subsidy on loans up to INR 12 lakhs.

PMAY subsidy and advantages

If you borrow INR 6 lakhs at 9% for 20 years, your EMI will amount to INR 5398, and the cumulative interest over 20 years will total INR 695000. The NPV after applying the subsidy of 6. 5% will be INR 267000, while the reduced loan will be INR 333000. Thus, after 20 years, your EMI will total INR 2996 at 9%, and the total interest will reach INR 386061.
Some key advantages of the PMAY subsidy program are:
1. As a qualified beneficiary, you have the opportunity to avail of PMAY subsidy advantages at a 6. 5% interest rate on the home loan, spanning a period of 20 years.
2. If the applicant is a disabled person or a senior citizen, they will be given special consideration for ground floor accommodation.
3. The PMAY subsidy is applicable to every component of the PMAY scheme.
4. Here, greater priority is provided to Tier I cities.

FAQs
1. How can I verify the status of the PMAY subsidy using the PMAY mobile application?
First, install the PMAY mobile app on your smartphone. Click on the beneficiary log-in option. Sign in with your PMAY portal credentials. Input the application ID in the specified field. Press the “get status” button to verify the subsidy status.
2. What is the duration for receiving a PMAY subsidy?
Once your application is submitted, all information will be authenticated. The disbursement process will commence only after the verification is finalized. This typically takes approximately 3-4 months to conclude.

Conclusion

We have outlined all the essential details of the PMAY scheme for 2024. Keeping these facts in mind will facilitate your application process and enable you to obtain all related benefits.

Disclaimer: The information provided above is for illustrative purposes only. For additional information, please consult the policy wordings and prospectus before finalizing any sales.