A to Z of Pradhan Mantri Awas Yojna (PMAY)

Prime Minister Narendra Modi’s vision, when he came to power in 2014, was to provide houses to poor families by the time India completes its 75th year of independence. This vision culminated into the Pradhan Mantri Awas Yojna: an effort to provide homes to the needy.

The scheme seeks to address the housing problem through the following broad programs:

• Slum rehabilitation
• Provision of credit-linked subsidy for the weaker section
• Provision of affordable housing by collaborating with public and private sectors
• Beneficiary-led house construction or enhancement

Note: The Union Cabinet has extended the implementation period of Pradhan Mantri Awas Yojana – Urban (PMAY – U) till December 31, 2024 with all verticals except Credit Linked Subsidy Scheme (CLSS). CLSS vertical for MIG I & II under PMAY U was up to March 31, 2021 and for LIG/EWS was up to March 31, 2022. During the extension period no additional houses will be sanctioned. However, financial assistance is to be provided for the completion of 122.69 lakh houses, which were already sanctioned till March 31, 2022, under BLC, AHP & ISSR verticals of PMAY U.

Scope of PMAY:

The Pradhan Mantri Awas Yojna, earlier known as Housing For All, came into force in 2015 through Modi’s Government and will continue until 2022. This mission is to build 2 crore houses targeting all eligible poor families and beneficiaries across all states and union territories. Except for the credit-linked subsidy (which falls under the Central Sector Scheme), rest all other programs are part of Central Sponsored Scheme. The states and the union territories have been given liberty to formalize and execute the scheme as per the standard guidelines defined by the mission so that it is implemented in a timely manner without any delay.

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Pradhan Mantri Awas Yojana Eligibility Criteria

As of now, the only requirement is that the beneficiary should not own a brick and mortar house in their name or in the name of any other family member in order to avail this scheme.

PMAY Coverage and Duration

As per Census 2011, all listed statutory towns would be eligible for this program.

The slum rehabilitation and affordable housing programs, in partnership with public and private sectors, will cover basic civic amenities such as water, road, sanitation, electricity, and basic hygiene considerations. For the credit-linked subsidy and beneficiary led house, the care towards these basic civic amenities will be provided by the Urban Local Body (ULB).

Read Also: How to Check Your Name in PMAY List

House Specifics for PMAY

Under the PMAY scheme, houses of carpet area of up to 30 sq. m. will be constructed, with basic civic infrastructure in place. Further, houses should be designed in accordance with the National Building Code in order to ensure structural safety against earthquakes, cyclones, landslides, floods etc.

However, if the land available does not meet the minimum area requirement, beneficiary consent is necessary to for the state or union territory to construct house, post the approval of SLSMC (State Level Sanctioning and Monitoring Committee).

PM Awas Yojna Implementation Ideology

As mentioned earlier in the article, the scheme is to be implemented under four programs:

Slum Rehabilitation

Under this program, the slum redevelopment is implemented using Central or State Government’s land as resource. Extra TDR/FSI/FAR is required to make these schemes financially operable. The State or the Union territories can decide on the following based on legislation rights.

• They may decide on the slum dwellers’ eligibility based on cut-off date i.e. the date on which the beneficiaries have to be resident of that area in order to avail the scheme.
• They may decide on the allotment rights of the constructed houses ( based on either ownership rights, mortgage able or leasehold rights)
• They may also decide if they can club certain nearby slums based on technical and financial viability. Such developments are considered as a single project.

Credit-linked subsidy

Credit-linked subsidy will be based on home loans taken by eligible poor families for the purpose of construction or purchase of a house.

The government would provide a subsidy on the interest at the rate of 6.5% on the home loan availed by the beneficiaries for a period of 15 years. This subsidy would be available on a loan amount of Rs 6 lakhs. For loans above Rs 6 lakhs, the subsidy will not be applicable on the full amount. The loan amount exceeding Rs 6 lakhs would be issued at non-subsidized rates. The subsidy scheme ensures a low equated monthly installment (EMI) for the Economically Weaker Section (EWS) and Low Income Group (LIG).

Under this scheme preference would be given to Scheduled caste/scheduled tribe/other backward classes, minorities and differently abled persons.

Affordable Housing in Partnership

Under this program, housing provision to the economically weaker section is ensured by States and Union Territories by partnering with public and private sectors. This can be done through public agencies or even through private industries, etc. The detailed project report and allotment of houses to the eligible beneficiaries should be transparent and approved by SLSMC.

• All EWS houses constructed under this program will be eligible for Central Assistance to the tune of Rs 1.5 lakhs each.
• The states and union territories will the maximum sale price of an EWS house, to which end they may choose to add state subsidy or stamp duty exemption.
• Preference will be given to senior citizens, single women, differently-abled, transgenders, or individuals belonging to scheduled castes, scheduled tribes, other backward classes or minorities.

Beneficiary-led Individual House Construction or Enhancement

This program can be availed by segments who are not eligible to avail the facilities offered with the other three programs mentioned above. Such families enjoy Central Assistance of Rs 1.5 lakhs for the construction/enhancement of their houses. However, such projects need to be approved by SLSMC before commencement.

The assistance amount is paid out by state governments in 3-4 installments depending on the construction status of the house. However, the last installment will be paid only after the construction is complete.

 Documents to be submitted for PMAY

1. Duly filled Application Form
2. Self-Attested Income Certificate (needed if you fall below the taxable limit) and income proof Income Proof/salary slip
3. ID proof – PAN Card / Aadhar No. / Voter’s Card/ Driving License, etc.
4. Copy of Address Proof
5. Latest I.T. Return /Form 16
6. Bank Account Statement for last 6 months
7. Valuation certificate
8. Approved plan of Construction.
9. Certificate for architect or engineer confirming the cost of construction/repairs
10. Architect’s certificate regarding the life and fitness of Flat/ House in case of purchase.
11. Agreement for construction with Builder/ Developer
12. NOC from Housing Society or any Competent Authority
13. Receipt of advance payment made to builder/seller
14. Affidavit from the applicant confirming that neither they nor any family member owns a pucca house in India.
15. Property papers, such as Letter of Allotment of Property or Agreement

Top Banks offering Home Loan schemes under PMAY

Some of the leading banks offering home loans under the Credit-linked subsidy program are as follows:

• ICICI Bank
• Canara Bank
• IDBI Bank
• Bank of India
• SBI