What is Pradhan Mantri Awas Yojana?
The Government of India initiated the Pradhan Mantri Awas Yojana (URBAN)-Housing for All initiative with the goal of increasing homeownership. The goal was to achieve “Housing for All” by 2022.
As a part of this objective, the government introduces a subsidy plan known as the Credit Linked Subsidy Scheme (CLSS). This is to provide interest subsidies on loans taken out for the purchase, construction, expansion, or improvement of a home.
Given the predicted growth of urbanization and the resulting housing demands in India. The PMAY scheme caters to the Economically Weaker Section (EWS)/Lower Income Group (LIG) and Middle Income Groups (MIG) of the community.
What is a CLSS?
The PMAY Scheme’s Credit Linked Subsidy Scheme (CLSS) allows the Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG) to get home loans with lower EMIs thanks to an interest subsidy. It will credit the interest subsidy to the beneficiary in advance of the principal amount. Thus, reducing the effective home loan amount and EMI.
The Credit Linked Subsidy Scheme (CLSS) under PMAY makes house loans more affordable. It provides a subsidy on the interest component, which reduces the customer’s expense on the loan. The amount of the subsidy under the scheme is mostly a product of the customer’s income category. As well as the size of the property they wish to finance.
PMAY Features/Benefits and Objectives
The PMAY scheme has the following main features or benefits:
- Subsidy Benefit: The Pradhan Mantri Awas Yojana subsidy, which offers up to Rs. 2.67 lakhs, is perhaps one of the most significant benefits of the PMAY scheme. Individuals who meet the PMAY qualifying requirements can benefit from partner-able cheap housing, subsidized individual house building or improvement, and in-situ slum restoration.
- Extended Loan Tenure: PMAY provides its recipients with a loan that might last up to 20 years. As a result, beneficiaries will have lower monthly payments.
- No Loan Limits: The PMAY scheme has no set restriction on the amount of money that someone wants to borrow. As a result, recipients can take out a housing loan to meet their needs; as long as they can repay it at the end of the period.
- Option of Additional Loan: Beneficiaries who require home loans in addition to those provided under PMAY may apply for extra loans. However, there will be no subsidy for these loans, and the lender will charge a standard processing fee.
- Benefits for Women and Minorities: Female homeownership or co-ownership of the house is a necessary clause in the EWS and LIG categories. Moreover it is also an optional clause in the MIG I and MIG II categories, according to the PMAY scheme. In addition, there are provisions for salaried women, widows, transgender people, the disabled, and senior residents. For example, if an elderly citizen applies under this program, they will be guaranteed ground-floor housing.
- Eco-Friendly Construction: The construction of PMAY residences emphasise the use of environmentally friendly building methods and materials. This will reduce pollutants and ensure minimal damage to the environment in and around the construction site.
PMPMAY CLSS Benefits as per Income Categories
The benefits as per the income categories are as follows:
CLSS EWS/LIG Scheme under PMAY:
In 2017, the scheme got updated to include Middle Income Groups (MIG).
CLSS MIG 1 Scheme under PMAY:
CLSS MIG 2 Scheme under PMAY:
Who are Eligible for PMAY?
To be eligible for the Pradhan Mantri Awas Yojana, you must meet the following requirements:
- Steps to Register under PMAY
- Income: The beneficiary’s annual household income must meet the criteria set forth for the various categories. If you fall into one of the four groups – Economically Weaker Section or EWS, Lower Income Group or LIG, Middle Income Group or MIG I, or Middle Income Group-II or MIG II – you are eligible for the PMAY subsidy scheme.
- No Prior Ownership: No member of the beneficiary’s family may not own a pucca house in any region of the country.
- No Central Assistance: The beneficiary or any other member of the beneficiary’s family must not have received a CLSS subsidy.
- Mandatory Female Ownership or Co-Ownership: At least one female member of the borrower’s family must be named as the property’s owner or co-owner (applicable only to the EWS and LIG categories).
- Carpet Area: The carpet area of the property must fall within the limits set out for the various categories.
What are the Documents necessary for PMAY?
In addition to the standard loan application documents, the Pradhan Mantri Awas Yojana subsidy requires the submission of the following extra documents:
- The beneficiary’s family must sign a declaration cum affidavit stating that they do not own a pucca house.
- Salary slips, self-attested income certificate, annual family income.
- Construction Agreement with the developer or builder, if applicable.
- Certificate of Valuation for the property you wish to purchase and the receipt of a down payment on the home you want to buy.
- Aadhaar Card, PAN Card, Driver’s License, or Voters’ ID are all acceptable forms of identification.
- A copy of Address Proof
- An NOC from a Competent Authority or any Housing Society
Steps to Register under PMAY
Follow the steps below to register for the PMAY program:
- Go to the PMAY official website.
- Select the ‘Benefits Under Other 3 Components’ option from the drop-down menu by selecting ‘Citizen Assessment’.
- Type in your Aadhar number and hit the ‘Submit’ button.
- If your Aadhar details are correct, following page will load. Now fill up the information such as your name, income, address, phone number, religion, caste, and so on.
- When you’ve finished filling out all of the fields, type the Captcha Code into the box at the bottom of the page and click “Submit.”
Note: You can check and update your details later, with the help of your Application and Aadhar number.
For more such updates, keep watching this space!