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About Pradhan Mantri Awas Yojana
Moneycontrol.com  |  December 12, 2019

Moneycontrol News

PMAY: Pradhan Mantri Awas Yojana is an initiative taken by the government of India to provide affordable houses by 2020 to every homeless person. Check out the eligibility, types, features & benefits of PMAY at Moneycontrol.

 

Pradhan Mantri Awas Yojana  (PMAY) is a flagship project of the Government of India that aims to provide affordable housing for the urban poor, rural poor, and other sections of the society who are homeless. The scheme was launched in 2015 with an aim  to build 20 million houses by 2020. There are two categories of Pradhan Mantri Awas Yojana:

 

Pradhan Mantri Awas Yojana &ndash Urban: This has specific project verticals to address the needs of those who are in urban areas. Individuals who belong to Economically Weak Section or Low Income Group or Middle Income Group can also avail of the benefits under this scheme.

 

Pradhan Mantri Awas Yojana &ndash Gramin: Under this category, those who are homeless or reside in zero, one or two-room kutcha houses as per the data collected from the Socio-Economic and Caste Census 2011 are eligible to avail of the benefits.

 

Let us take a closer look at each aspect of the scheme.

 

Types of PMAY

 

As mentioned above, there are two categories of PMAY:

 

PMAY Urban: This category has four project verticals to extend housing assistance which are as follows:

 

Rehabilitation of the slum dwellers with the participation of private developers

 

Provide credit linked subsidy to promote affordable housing

 

Encourage more partnerships between the public and the private sector

 

Provide grants for beneficiary-led individual house construction

 

PMAY Gramin:  The objective of PMAY Gramin is to provide pucca houses that are equipped with basic amenities to every homeless person and those who currently reside in kutcha and dilapidated houses by 2022.

 

Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)     

 

This scheme covers approximately one crore households that are currently in kutcha houses. If eligible under PMAY-G, the beneficiaries will receive unit assistance of  Rs 1.20 Lakh for houses in the plains and Rs 1.30 Lakhs for houses located in hilly areas, difficult to access areas,

 

This scheme covers approximately one crore households that are currently in kutcha houses. If eligible under PMAY-G, the beneficiaries will receive unit assistance of  Rs 1.20 Lakh for houses in the plains and Rs 1.30 Lakhs for houses located in hilly areas, difficult to access areas, and Integrated Action Plan districts. The minimum size of the house constructed under PMAY Gramin will be 25 sq.m. PMAY Gramin also extends financial assistance to those who are residing Below Poverty Line to help them build the houses. The quantum of the aid provided is as follows:

 

For the construction of a new house in the plains: Rs.70,000

 

For the development of a new house in the hilly areas/difficult areas/IAP areas: Rs 75,000

 

For up-gradation of kutcha or dilapidated house: Rs 15,000

 

For acquiring house site:  Rs 20,000

 

Pradhan Mantri Awas Yojana Urban (PMAY Urban) 

 

The objective of this scheme is to support the construction of houses up to 30 square meter carpet area with necessary civic infrastructure. This scheme is applicable in 4041 statutory towns as per the Census data of 2011. The chief objectives of PMAY Urban are as follows:

 

Granting an interest subsidy on the amount of housing loan availed for purchasing / constructing/extending a house

 

Rehabilitating the slum dwellers through In Situ redevelopment

 

Extending financial assistance for beneficiary led construction or enhancement of a house

 

Provide affordable housing in partnership

 

Ensuring housing for all notwithstanding the gender, sexual orientation, the caste of the homeowner

 

The objective of Pradhan Mantri Awas Yojana  

 

Every year a large number of migrant workforces come to urban areas in search of jobs. However, the lack of affordable housing options for these workforces results in such people finding accommodation in slums and informal settlements. In fact, India's total urban housing shortage is projected to be about 30 million by 2022. In rural areas, individuals who do not have access to sufficient financial resources reside in kutcha houses or houses that are in dilapidated condition.

 

The primary objective of PMAY is to provide affordable housing for all by 2022.  The housing options provided are meant to be sustainable and eco-friendly.  PMAY also aims to make housing accessible to specific target groups such as those who do not have enough economic resources, women, individuals who belong to the minorities such as Scheduled Castes and Scheduled Tribes, widows of military personnel, transgender people, elderly persons, etc. The Government also provides particular preference to those who are differently abed or are senior citizens. Every house constructed under the aegis of PMAY should be designed and built to meet the requirements of structural safety against earthquake, flood, cyclone, landslides, etc.

 

The houses must conform to the National Building Code and other relevant Bureau of Indian Standards (BIS) codes.

 

Features of Pradhan Mantri Awas Yojana 

 

The chief characteristic of PMAY is to tackle the problem of homelessness in India. Studies report that by 2050, India's urban population will be 814 million. A vast majority of the urban poor do not have access to affordable housing options due to the extremely high rates of real estate. The key features of PMAY Urban are as follows:

 

Granting an interest subsidy on the amount of housing loan availed for purchasing/constructing/extending a house

 

Rehabilitating the slum dwellers through In Situ redevelopment

 

Extending financial assistance for beneficiary led construction or enhancement of a house

 

Encouraging housing for all notwithstanding the gender, sexual orientation, the caste of the homeowner

 

Ensuring that the benefits are extended to the minorities of the society, including women, economically backward groups, Scheduled Castes, and Scheduled Tribes, trans-genders, and senior citizens.

 

Similarly, PMAY Gramin is directed at the rural population. The objective of this scheme is to provide a pucca house equipped with basic amenities by 2022  to such individuals who are presently residing in a kutcha house.

 

Benefits of Pradhan Mantri Awas Yojana     

 

Following the are benefits that one can avail of under the Pradhan Mantri Awas Yojana:

 

It provides a large interest subsidy for every citizen: PM Awas Yojana provides a Credit Linked Subsidy Scheme to those who belong to the Economically Weaker Sections, Low Income Group, and Middle Income Group. The eligibility is linked to annual household income.

 

It gives priority to marginalized sections of the society: The primary beneficiaries of PM Awas Yojana are women, transgenders, members of the scheduled castes and scheduled tribes, elderly citizens, and other minorities. A lot of banks also offer lower interest rates on home loans to women in order to encourage them to buy houses.

 

It rehabilitates the slums: Slum dwellers in urban areas are provided accommodation through the in situ rehabilitation program under PM Awas Yojana.

 

It strives to provide housing for all: The primary objective of PM Awas Yojana is to help less privileged sections of the society to  own a house and live with dignity. To this extent, PM Awas Yojana provides accommodation to every individual of the society irrespective of their religion, caste, income, sexual orientation, or gender.

 

Promotes eco-friendly construction: As per the current guidelines of PM Awas Yojana, eco-friendly materials should be used for the construction of the houses.

 

Integration with other central government schemes: Pradhan Mantri Awas Yojana Gramin is integrated with the benefits of different social welfare schemes of the Central Government. These include the construction of toilets under the Swacch Bharat Mission, provision of clean fuel, and drinking water, etc.

 

Eligibility Criteria for PMAY

 

The eligibility criterion under PMAY depends on the category. Under PMAY Urban, the eligibility is linked to the annual household income, as follows:

 

Economically Weaker Section or Lower Income Group - Annual income between Rs. 3 Lakh and Rs. 6 Lakh. The maximum interest subsidy will be 6.5% on a maximum loan amount of up to Rs. 6 Lakh

 

Middle Income Group I - Annual income within Rs. 6 Lakh - Rs. 12 Lakh. The maximum  interest subsidy will be 4% for a maximum loan amount of Rs. 9 Lakh

 

Middle Income Group-II - Annual income within Rs. 12 Lakh - Rs. 18 Lakh. The maximum interest subsidy will be 3% for a maximum loan of Rs. 12 lakh

 

The eligible beneficiaries should not own a pucca house in any part of the country. In the case of the applicants from the Economically Weaker Sections or Low Income Group, there should be at least one female owner of the house.

 

In the case of PMAY Gramin, there are certain conditions that an eligible beneficiary must fulfil, such as:

 

The applicant’s family should comprise of spouse and unmarried children

 

The applicant or any member of the family should not own a pucca house in anywhere in India

 

Depending on the specific requirements of a state, the applicant and his/her family must be residing in the state for a particular period of time

 

The applicant or his/her family should not own a two/three/four-wheeler or a fishing boat

 

The household of the applicant should not have any member who is a Government employee

 

The household should not own a refrigerator or a landline phone

 

The household should not have a Kisan Credit Card with a credit limit of Rs 50,000 or above

 

Documents required for PMAY 

 

Following documents are required for supporting an application under PMAY Urban

 

Documents for proof of identity:

 

PAN card. This is mandatory.

 

Any of the following documents: Voters ID, Aadhar Card, Passport, Driving license, Photo credit card, photo identity issued by the Government, a letter from a recognized public authority or public servant that verifies the identity of the customer with a photograph no older than 30 days.

 

Document for proof of address:

 

Any of the following documents can be provided:

 

Letter from a recognized public authority or public servant verifying the identity and residence of the customer

 

Rent agreement

 

Life Insurance Policy

 

Residence address Certificate

 

Voter card

 

Aadhar card

 

Passport

 

Documents for proof of income

 

Any of the following documents can be provided:

 

Last six months bank statement

 

ITR receipts

 

Salary slips for the previous two months

 

Proof of purchase of the property (if applicable):

 

Sale Deed

 

Sale/ Purchase agreement

 

Property registration certificate (if available)

 

Copy of Receipt/(s) of payment/(s) made to the developer (if applicable)

 

Following documents are required to avail of the benefits under PMAY Gramin:

 

Proof of identity: Any one of the following from Voters ID, Aadhar Card, Photo identity issued by the Government, a letter from a recognized public authority or public servant that verifies the identity of the customer with a photograph no older than 30 days.

 

Proof of income: Bank account statement for the last three months, salary certificate(if any)

 

Proof of address: Any of the following from a letter from a recognized public authority or public servant verifying the identity and residence of the customer, life insurance policy, voters ID, Aadhaar card.

 

Other documents: certificate claiming the cost of construction, an affidavit stating neither the applicant nor his family members own a pucca house, property registration certificate (if applicable)

 

Beneficiaries under PM Awas Yojana

 

The list of beneficiaries under PM Awas Yojana is as  follows:

PMAY Urban

 

Economically Weaker Section or Lower Income Group - Annual income between Rs. 3 Lakh and Rs. 6 Lakh.

 

Middle Income Group I - Annual income within Rs. 6 Lakh - Rs. 12 Lakh.

 

Middle Income Group-II - Annual income within Rs. 12 Lakh - Rs. 18 Lakh.

 

Slum-dwellers in statutory towns and cities as per the data obtained from the Socio-Economic and Caste Census 2011.

 

PMAY Gramin

 

All individuals who are houseless and the households that are living in zero, one or two-room kutcha houses as per SECC are the eligible beneficiaries. Those households that demonstrate the maximum housing deprivation will be given priority. Houses with a pucca roof or a pucca wall and houses with more than two rooms are automatically excluded. Further, if any household has any member as a Government employee, or has a member with a monthly income of more than INR 10,000, or owns at least 2.5 acres or more irrigated land, etc., will be excluded from the list of beneficiaries.

 

Pradhan Mantri Awas Yojna Components

 

PMAY Urban has the following components:

 

Credit Linked Subsidy Scheme: Housing loans are very expensive. Therefore, the Government has decided to provide an interest subsidy for the housing loans availed by those belonging to the Economically

 

Weaker Sections, Low Income Group, and Middle Income Group.  The interest subsidy is linked to the annual household income, as follows:

 

Economically Weaker Section: Beneficiaries with an annual household income of up to Rs. 3 Lakh is classified as Economically Weaker Section. The maximum interest subsidy will be 6.5% on a maximum loan amount of up to Rs. 6 Lakh for the tenure of 20 years.

 

Low Income Group: Beneficiaries with annual household incomes between Rs. 3 Lakh and Rs. 6 Lakh are classified as Lower Income Group. The maximum interest subsidy will be 6.5% on a maximum loan amount of up to Rs. 6 Lakh for the tenure of 20 years.

 

Middle Income Group- I: Beneficiaries with a yearly household income of not less than Rs. 6 lakh but not more than Rs. 12 lakh are classified as Middle Income Group-I. Such recipients are eligible to receive an interest subsidy of 4% for a maximum loan amount of Rs. 9 Lakh for a tenure of 20 years.

 

Middle Income Group-II: Beneficiaries with a yearly household income of not less than Rs. 12 lakh, but not more than Rs. 18 lakh are classified as Middle Income Group- II. They are eligible to receive an interest subsidy of 3% for a maximum loan of Rs. 12 lakh for 20 years.

 

Beneficiary led the construction of houses:  Under this vertical, the Central Government provides financial support of Rs. 1.5 lakh to eligible families from the Economically Weaker Sections to either construct new houses or enhance existing houses on their own.  This is available for those beneficiaries who are not eligible under the other three verticals of PMAY.

 

In Situ rehabilitation of the slum dwellers: The available land in the slums is used for constructing houses for the eligible slum dwellers.  A slum rehabilitation grant of Rs 1 Lakh per house is provided for the slum dwellers.

 

Affordable housing in partnership with the private sector: The private sector participants are encouraged to collaborate with the Government to build affordable housing for the eligible beneficiaries. Financial support of Rs 1.5 Lakh per house built for beneficiaries belonging to the Economically Weaker Sections is provided. Other concessions such as providing the land at an affordable cost, waiving stamp duty on the instruments, etc. are provided to the builders to foster participation. Preference is also given to those who are physically disabled persons, senior citizens, Scheduled Castes, Scheduled Tribes, Other Backward Classes, single women, transgender, and other weaker and vulnerable sections of the society.

 

PMAY Gramin provides financial assistance to poor and homeless families and those who are residing in dilapidated and kutcha houses and live Below the Poverty Line. The financial aid is provided for the construction of the house. The families of manual scavengers and rehabilitated bonded laborers are given preference over others. The Ministry of Rural Development has also launched the Rural Housing Interest Subsidy Scheme. Under this scheme, loans from banks and financial institutions are provided to those who reside in rural areas but do not fall within the eligibility criteria of PMAY Gramin.

 

The process to apply for PMAY    

 

The process to apply for PMAY benefits is different for PMAY Urban and PMAY Gramin.

 

To apply for PMAY Urban, follow the steps below:

 

Online application

Log on to http://pmaymis.gov.in/

 

Click the tab titled 'Citizen Assessment.' You will see a down menu that will include 'For slum dwellers' and 'Benefits under the other three components.' Select the appropriate tab.

 

A new page will appear. Please enter your Aadhaar card number and name as per your Aadhaar card. You will also find an option to enter your Virtual ID, which is a 16-digit random number that is mapped with the Aadhaar number. You can use your VID instead of the Aadhaar number for authentication.

 

Once the details are submitted, you will be prompted to enter personal information such as father's name, bank account number, income details, permanent address, etc. You will also need to the component of PMAY under which you are seeking the benefits.

 

Once you have entered all the details, click on ‘Save’ to save the details of the application. You will also get a prompt for entering the Captcha code and click the ‘Save’ button again to save the application. You can take a printout of the application.

 

Offline application

 

Visit a Common Service Centre (CSC), which is operated by the State Governments or a PMAY listed bank to fill in the application for PMAY Urban.

 

Provide the necessary supporting documents for identity, address, income, etc.

 

In the case of PMAY Gramin, the eligible beneficiaries are ed by the Government on the basis of several socio-economic parameters. Other mandatory requirements include:

 

The applicant’s family should comprise of a spouse and unmarried children

 

The applicant or any member of the family should not own a pucca house in anywhere in India

 

Priority is given to homeless people who are Below Poverty Line.  An online application called AwaasSoft generates the list of beneficiaries that is forwarded to the respective Gram Sabhas for verification. If you are eligible to be included, but your name is d from the list, you can file a grievance with the Competent Authority appointed by the respective State Government/Union Territory.

 

FAQs

 

I have misplaced by Aadhar card. Can I apply for the benefits under PMAY without an Aadhar card?

 

Aadhar card is a mandatory requirement. If you do not have access to your Aadhar card, you can use the Virtual Identification Number.

 

 How will I receive the benefits under the credit-linked subsidy scheme?

 

If your application for the credit-linked subsidy scheme is approved, your bank will claim the subsidy from the National Housing Bank (NHB). It will also present relevant data and reports to NHB for verification of the claim submitted.  NHB will carry out due diligence and sanction the subsidy amount to your bank.  The subsidy amount will be credited by NHB to your bank.  Once your bank receives the subsidy, the amount will be credited to your account. Your EMI will be adjusted accordingly.

 

 As a beneficiary of PMAY, am I eligible to construct or purchase the house anywhere in India? Can I buy or construct such property outside India?

 

As a beneficiary, you are eligible to construct or purchase the house in any Statutory Towns as per Census 2011 and towns notified.  The Government will also inform the Planning Area as with respect to the Statutory Towns and which surrounds the concerned Municipal area. This is important for providing the interest subsidy to those belonging to the Middle Income Group.

 

You are not allowed to build or construct a house outside India with the assistance of PMAY.

 

Who is the owner of the houses that are built under the aegis of a slum redevelopment plan?

 

The methodology of deciding the ownership rights of the houses to be allotted under HFAPoA will be as per the discretion of the State Government/Union Territory, as the case may be. Suitable restrictions may be imposed on the transfer restrictions of such properties.

 

Can the State Government club slums together and extend the benefits under PMAY?

 

Yes, groups of slums can be considered as a unit for in-situ development under PMAY.

 

Does PMAY set out any mandatory in order to facilitate the growth of affordable housing?

 

The conditions set out in PMAY are as follows:

 

State/UTs must make suitable changes in the procedure and rules to bypass the need for a separate Non-Agricultural (NA) Permission if land already falls in the residential zone earmarked in Master Plan of city or area.

 

States/UTs shall prepare/amend their Master Plans to earmark land for Affordable Housing.

 

There should be a single-window, time-bound clearance for layout approval and building permissions at the Urban Local Body level.

 

The existing rental laws should be amended on the lines of the Model Tenancy Act, which has been prepared by the Ministry of Housing and Urban Poverty Alleviation.

 

If the need arises, the State government/Union Territories will provide FAR/FSI/TDR and relaxed density norms for slum redevelopment and low-cost housing.

 

What are the use of the AwaasSoft platform and the AwaasSoft app?

 

In order to effectively monitor the progress of the PMAY scheme, the AwaasSoft platform is used for collating data and generating performance reports. It helps to monitor the performance on the basis of varied parameters of performance.

 

AwasApp is a mobile application that can help officials and citizens to capture and upload geo-tagged, time and date stamped photographs of the house at various stages of construction. It is helpful in reducing the time lag in verification.

 

How can I receive the interest subsidy under the Rural Housing Interest Subsidy Scheme?

 

The advance from the subsidy payment is released to the Central Nodal Agency. The subsidy is released to the Central Nodal Agency after the utilization of 70% of the earlier amounts. On the basis of the loan amount provided by the banks to the beneficiaries of the Rural Housing Interest Subsidy Scheme, the Central Nodal Agency to the banks on the basis of the claims submitted. Subsequently, the Present Net Value of the interest subsidy is credited to the account of the beneficiary by the bank.

 

What is the definition of a kutcha house under PMAY Gramin?

 

A kutcha house can be defined as one in which walls and/or roof is made of material, such as unburnt bricks, bamboos, mud, grass, reeds, thatch, loosely packed stones, etc. which are not durable due to inappropriate application of techniques and are not able to withstand normal wear and tear.

 

Is there a sharing mechanism between the Central Government and the State Government in order to facilitate Pradhan Mantri Awas Yojana Gramin Scheme?

 

The cost is shared between the Central and State Government at 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States. Further, out of the annual budget earmarked for PMAY Gramin, 90% of funds are released to States/UTs for the construction of new houses under PMAY-G 4% is allocated towards the administrative expenses incurred and a fund for special projects is created by retaining 5% of the budget. The annual allocation is done on the basis of an Annual Action Plan (AAP) that is approved by an empowered committee.

 

My application for credit linked subsidy has been approved. Due to unforeseen circumstances, the construction of my house has been stalled. Do I need to refund the subsidy that I have received from the Government?

 

Yes, the bank that has sanctioned the housing loan to you and credited the subsidy to your account will take it back and refund it to the Government.

 

Can a non-resident apply for the benefits under PMAY?

 

PMAY does not exclude an individual on the basis of residence. If you are an NRI, you will have to fulfil the eligibility criteria under PMAY in order to be considered for the benefits under PMAY.

 

Is it possible for me to take a loan of more than 20 years and also avail of a credit-linked subsidy under PMAY?

 

You can do that. However, the interest subsidy will be calculated only for a tenor of 20 years.

 

Has the PMAY scheme defined beneficiary family?

 

Yes, the guidelines have laid down a definition: A beneficiary family consists of husband, wife, and unmarried children. The beneficiary family should not own a pucca house in the name of any member of the family in any part of India.

 

Rohit belongs to the Economically Weaker Section and wants to apply for a credit-linked subsidy. He has applied for a housing loan. Will he be still eligible for the subsidy if the total tenor of the loan exceeds the 20 year period under the PMAY regulations?

 

There is no restriction on applying for a loan with a higher tenor. However, the interest subsidy is capped at 20 years.

 

I intend to carry out repairs to an existing house under PMAY. What are the conditions that I need to fulfill?

 

The current home must be either kutcha or semi pucca and is in need of extensive renovations for transforming it into a pucca house. The specific eligibility criteria laid down in PMAY in this regard should also be met.

 

What documents can I submit as proof of income?

 

You can submit bank statements for the last six months or income tax returns for the last three years as proof of income.

 

Rahul owns a plot of land. However, he has not constructed a house on the same. He belongs to the Middle Income Group. Is he eligible to receive assistance provided by PMAY?

 

As per PMAY, the beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India to be eligible to receive central assistance under the scheme. Rahul will be eligible to receive assistance, provided he fulfils the income-related eligibility criteria of the scheme.

 

Ram is staying with his parents. The house is a rented property. Ram is unmarried. Can he claim the benefits under PMAY?

 

Yes, PMAY benefits are available to children, whether married or unmarried, who stay in a house with the parents and parents own the home or in a different house in another city on rent. The applicant should be an earning member and should not be the owner of any other house in any part of the country.