What is Pradhan Mantri Awas Yojana?
Owning a house is a dream for everybody. But the growth in the real estate sector and the high property rate make it difficult for an individual to buy property in India. You need to spend a lump sum amount of money to buy a new house or a flat. In order to address this issue, the government has introduced Pradhan Mantri Awas Yojana to provide houses at very affordable rates. Register for our course in Government Financial Schemes at Elearnmarkets to know more.
Pradhan Mantri Awas Yojana is a government subsidy scheme for families buying their first house. This scheme is also known as Housing for All, was launched by our honorable prime minister, Narendra Modi on 25th June 2015. It is mostly targeted to the poor people living in the Low Income Group (LIG) and Economically Weaker Section (EWS) categories in the urban establishment of our country. It aims to build more than two crore houses in different parts of India over a span of 7 years.
What is the objective of the Pradhan Mantri Awas Yojana?
- The primary and most important objective of PMAY is to provide pucca housing to all affordable by the year 2022.
- The next important objective is to include widows, lower income group people, transgender and providing them with affordable housing scheme.
- In PMAY, the Government also aims to implement and monitor the programme through an end-to-end e-Governance model using AwaasSoft and Awaas app.
- It also aims to make registration mandatory to avail the benefits of the scheme which includes strict beneficiary names to be mothers or wives.
Who are the beneficiaries and what is the eligibility criteria of the PMAY?
The main beneficiaries of this housing for all scheme 2022 will be:
- Economically weaker section(EWS)
- People who belong to Scheduled Castes(SC) or Scheduled Tribes(ST)
The applicant in order to verify that he/she belongs to the LIG or EWS group needs to submit an affidavit or self-certificate as a proof of income. Moreover, the income of the individual should not exceed the following limit-
- Rs 3,00,000 p.a. for EWS individuals
- Rs 6,00,000 p.a. for LIG individuals
However, the age of the individual applying for the scheme should be between 21 to 55 years.
What are the important features of the Pradhan Mantri Awas Yojana?
- The house to be purchased or constructed should be in the name of the female head of the family or under the joint names of the male and female head of the family.
- The applicant does not require any additional document except a declaration of not owning a pucca house. However, if the person does not have an income proof, an affidavit needs to be submitted.
- The interest subsidy is available for loans taken for the construction of a new house and the addition of a room, toilet, kitchen etc. to the existing house as an incremental housing. The carpet area made under this component should be up to 60 sq meters for LIG and 30 sq meters for EWS category. The individual, however, can construct a bigger house.
What is the benefit of Pradhan Mantri Awas Yojana?
“Pradhan Mantri Awas Yojana is not just about merely building houses. This is a significant step in making the dreams of the poor come true” – Narendra Modi
- Promotion of affordable housing for the weaker section
- The individuals who belong to LIG or EWS group are able to avail the loan at a subsidized rate of 6.5%.
- There is no limit on the amount of loan.
- Stakeholders can check the progress of the scheme through online reporting.
Moreover, this will be valid for a period of 15 years or during the loan tenure (whichever is lower) on the initial amount of Rs 6,00,000. However, this subsidized rate is not applicable to additional loan i.e. beyond Rs 6,00,000.
Different Phases of Pradhan Mantri Awas Yojana
The focus of the Indian government is on the creation of housing units under three different phases-
Phase 1: This phase has already started in April 2015 and will continue up to March 2017 and 100 cities are selected under this.
Phase 2: The phase 2 will take place between April 2017 to March 2019 and will cover an additional 200 cities.
Phase 3: It is the last phase of the scheme, all the remaining cities will be covered and it will take place from April 2019 to March 2022.
You can also read 7 government of India schemes to invest for social security\
How and where do I apply for Pradhan Mantri Awas Yojana?
PMAY can be applied in two categories:
- Under other 3 components: There are basically 3 types of economically weaker section in the society- Economically Weaker Section(EWS), Low-Income Group(LIG) and Middle Income Group(MIG). EWSs are required to have a minimum annual income cap of Rs. 3 lacs, LIGs have a cap of Rs.3-6 lacs whereas MIGs are required to have a minimum cap of Rs.6 lacs and maximum cap stands at 18 lacs.
- Slum Dwellers: People who stay in poorly built residences and there is lack of proper infrastructure, water and sanitation facilities can also apply for the Housing Scheme for all by 2022 under PMAY scheme.
FAQs on Pradhan Mantri Awas Yojana scheme
What if I already own a plot or a kachha house? Can I still apply for a subsidy?
The main take away from this scheme is that the applicant should not own a pucca house, otherwise he will not be eligible to apply for this scheme.
Can subsidy amount be adjusted against tenure or only the loan amount?
The applicant must note that subsidy amount cannot be adjusted against the tenure. The implication of the subsidy will only be on the principal amount due to which the EMI may be impacted.
What does Household/beneficiary constitute?
i. A beneficiary family will consist of husband, wife, unmarried son or daughter
ii. An adult earning member can be treated as separate earning member.
Are there any exceptions in female ownership in property in Economically Weaker Section/Low-Income Group Scheme?
Adult female membership has been made mandatory in property structure. In case an adult member of a household is absent, the property can be registered in the name of a male member only.
What are the things to be done after the first login?
i. Update profile
ii. Change self-password
iii. Update all master data
iv. Add/update project in charge details
v. Add/update bank account details
How to calculate the subsidy amount?
One can calculate the subsidy amount by simply clicking on the “NPV Subsidy Calculator” in the main menu. He/she just needs to enter the loan amount, rate of interest and loan period.
How do I search for a beneficiary?
If anyone wants to search for a beneficiary, then click on “Search Beneficiary” in the main menu, then click on “Search by name”
Enter the first 3 characters of the name and then press show button.
List of beneficiaries will appear on the screen as shown below-
On clicking on the name, the details of all family members will be displayed.
It is a revolutionary scheme that will improve the life of an individual. It will be a great gift to the Indian Citizens on the eve of the 75th anniversary of our Independence. Our Prime Minister is determined to make sure that every citizen gets a home at an affordable price.
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IF A MEN ANNUAL INCOME IS BELOW 3 LACS AND HE HAS PURCHASE HOUSING BOARD HOUSE LIG IN HIS NAME IN APRIL 2015 , CAN HE ELIGABLE FOR PRADHAN MANTRI AWAVAS YOGANA IF NOT THEN WHY
Thanks Mr Kumar for your comment
You may be eligible , this depends on the eigibility criteria given in the article itself.
Mr. Goenkaji I Have purchase Housing board house under deendayal awas yojana in april 2015 and load amount of rs 10 lacs from indianbuls housing and the registry is in my name and this is my first property, so can i eligible for this criteria.
You have not mentioned your age and income .
Please read the eligiblity criteria applicable for
3. House purchase should be in whose name
Helpline – Please see the image (Pradhan Mantri Awas Yojana) mentioned in the article for ” eligibility criteria ”
If you satisfy these criterias , only then you are eligible.
Nice blog but i want ask some question can you tell me How I can register my name in this scheme.
This is a very nice blogs for Indian citizens who can’t afford own house. It is informative blogs for us. Please update us with this kind of Pradhan Mantri Yojana and all Schemes.
Thank You Tista, For sharing great info.
Great information for those who can’t afford to house. Nice Blog.
Thank you for your comment.
If you want to know more about some other important social schemes by the Government of India, you may read: 7 Government of India Schemes to Invest for Social Security
I have applied for pmay for my house building loan from LIC which was sanctioned(10Lack for a period of 20yrs) in November 2017 . I have following queries:
1- if I am eligible for this subsidy even after disbursement of full amount of my loan??
2- when I will get the subsidy if applicat is forwarded on 25 Oct 18??
3- will I get the full subsidy at one stretch and if it will reduce the principal amount of my loan??
4- what if I pay a gross amount of 5 lack at one stretch to reduce my loan amount before getting the subsidy???
Thank you for your comment.
Your financial advisor or financial planner will be able to guide you in a better manner with regards to your questions.
You can read some more social schemes in: 7 Government of India Schemes to Invest for Social Security blog.
I want to avail this scheme.Income 4lac .My Property exist in Anuppambattu in thiruvallur dt.Please help me on this.
For the eligibility criteria, you can read :
Pradhan Mantri Awas Yojana Eligibility
Nice information about a property in new mumbai.thanks you so much provides a valuable information.
I am following the criteria for LIG ,
My property is in my name which I buy in year 2008,and my loan for construction is sanction in nov 2017 ,and this is my first house ,can I abul clss ?
Very nice post about pradhan mantri awas yojana housing for all urban. Thanks for sharing an informative content.
Thank you for reading!
You can read blog on Government schemes here.