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  • Pradhan Mantri Awas Yojana Urban (PMAY-Urban)

    The Pradhan Mantri Awas Yojana–Housing for All (Urban), also called PMAY-Urban or PMAY HFA, aims to build more than 1 crore houses for eligible individuals/families by the year 2022.

    PMAY Urban

    What is PMAY Urban?

    PMAY-Urban will provide central assistance to all the states and union territories in India, through various agencies, to meet the objectives of the PMAY Housing for All scheme of the government of India. In order to increase the empowerment of women through ownership of residential property, there is a mandatory provision that the female head of the family should be the owner or the co-owner of the property built under PMAY-Urban.

    Learn More: PMAY Gramin

    The Pradhan Mantri Awas Yojana –Housing for All (Urban), also called PMAY-Urban or PMAY HFA, was launched by the Government of India in 2015 with the main aim of providing houses among MIG and EWS/LIG categories by 2022.

    On 10 August 2022, the Union Cabinet granted approval for the continuation of the PMAY-Urban until December 2024. Earlier, the scheme aimed to provided eligible beneficiaries with houses by March 2022.

    PMAY HFA (Urban) Features

    The features of PMAY HFA (Urban) are as given below:

    • Beneficiaries receive an interest rate subsidy of 6.5% on housing loans which is dependent on the income slab
    • Loans can be taken for house construction or for purchase of a resale house
    • Loan tenure is up to 20 years
    • Senior citizens and differently-abled individuals will receive priority on ground floor housing
    • Eco-friendly and sustainable technologies will be used for the buildings
    • Basic utilities like water, electricity, and gas connections will also be included

    PMAY Urban Guidelines 2023

    These are the guidelines for PMAY Urban:

    • Beneficiary family comprises of husband and wife as well as any unmarried sons or daughters
    • No member of the family should own a pucca house in their name in any part of India
    • Beneficiaries should not have availed assistance from any other government housing scheme
    • Adult earning members (irrespective of marital status) will be considered as a separate household if they do not own a pucca house anywhere in India
    • Aadhaar numbers of family members should be provided during loan application
    • Married couples are eligible for a single house either under joint or single ownership

    PMAY Urban Eligibility

    Eligibility under the PMAY-Urban scheme is determined by the total household income which is as given below:

    Income Group Household Income
    Economically Weaker Sections (EWS) Up to Rs.3 lakh
    Low Income Group (LIG) Rs.3 lakh to Rs.6 lakh
    Middle Income Group-I (MIG-I) Rs.6 lakh to Rs.12 lakh
    Middle Income Group-I (MIG-II) Rs.12 lakh to Rs.18 lakh

    Applicants in the LIG, MIG-I, and MIG-II categories are eligible for the Credit-Linked Subsidy Scheme (CLSS) under PMAY-Urban. Applicants in the LIG category are eligible for full assistance under PMAY.

    More Details: PMAY Eligibility

    PMAY Urban Programmes

    The following are the PMAY-Urban programmes:

    • Affordable Housing through Credit-Linked Subsidy: Under this scheme, an interest subsidy is provided to beneficiaries of up to Rs.2.67 lakh, specifics of which is determined based on their income category.
    • Affordable Housing in Partnership (AHP): Under this programme, housing for the EWS category will be constructed in partnership with the public and private sector. The government will provide assistance of up to Rs.1.5 lakh per house. Affordable Housing Projects will be eligible for fund assistance from the central government if at least 35% of its housing is for the EWS category and if there are at least 250 houses in the project. The rest of the houses can be for any other income group.
    • In-Situ Slum Redevelopment (ISSR): The government of India will partner with private firms to build houses for slum dwellers on the land on which the slum is located. A rehabilitation grant of Rs.1 lakh will be provided for each eligible house.
    • Subsidiary for Beneficiary-Led Construction (BLC) or Enhancement: This is provided to the EWS category families to construct a new house or enhance an existing one. Central assistance of up to Rs.1.5 lakh can be availed for this. There should be a minimum addition of 9.0 square meters of carpet addition to the residential unit.

    How to Calculate Subsidy under PMAY-U

    For loan amounts of up to Rs.6 lakh, the credit-linked subsidy is 6.5%. Those in the 12 lakh per annum income category will get a subsidy of 4% on Rs.9 lakh loan amount. Those in the Rs.18 lakh per annum income category will get a subsidy of 3% on Rs.12 lakh loan amount. This applies to loans with a 20-year tenure. Loan amounts beyond the subsidised amount will not be eligible for an interest subsidy.

    The interest subsidy amount is the Net Present Value (NPV). This is calculated at 9% discount rate. The interest subsidy decreases your loan amount which results in a reduction in your interest amount as well.

    To calculate the PMAY subsidy, let’s take the category of income of up to Rs.12 lakh per annum.

    • Original home loan amount: Rs.9 lakh
    • Housing loan interest rate: 9% p.a.
    • Total interest over 20 years: Rs.10.43 lakh
    • Equated Monthly Instalment (EMI): Rs.8,098

    Use: PMAY Subsidy Calculator

    Now with the PMAY-Urban interest subsidy:

    • Maximum subsidised loan amount: Rs.9 lakh
    • Eligible subsidy: 4%
    • NPV of interest subsidy: Rs.2.35 lakh
    • Revised loan amount: Rs.6.65 lakh
    • Housing loan Interest rate: 9% p.a.
    • Total interest over 20 years: Rs.7.70 lakh
    • Equated Monthly Instalment (EMI): Rs.5,983

    Savings in total interest: Rs.2,72,445

    Savings in EMI: Rs.2,114

    For Housing Loan Instalments Use: Home Loan Calculator

    How to Apply for PMAY-U

    To apply for PMAY-Urban, follow the steps given below:

    • Visit the official website of PMAY
    • Click on ‘'Citizen Assessment’' on the top navigation panel
    • Select either ‘'Benefit Under Other 3 Components’' or ‘'For Slum Dwellers’' according to your category
    • Enter your Aadhaar number
    • Click ‘'Submit’'
    • When verified, you will be directed to the next page
    • Fill in the details required of yourself and your family
    • Recheck the details to ensure they are accurate
    • When satisfied, enter the captcha code
    • Click on ‘'Submit’'

    Learn Step by Step Process: How to Apply for PMAY Scheme

    FAQs on Pradhan Mantri Awas Yojana Urban (PMAY-Urban)

    1. Will I be eligible for PMAY-Urban if I have a plot of land?

      Yes, if you fulfil all other eligibility criteria, you can avail the subsidy under the Beneficiary-led Individual House Construction scheme.

    2. Can I avail the PMAY-Urban scheme under more than one income category?

      No, you can only avail the scheme under one income category.

    3. Can I apply for PMAY-Urban if my parents own a house?

      If you fall under the income category given above, you can apply for PMAY-Urban even if your parents own a house because adult earning members are considered as a separate household, but you should not be owning a pucca house anywhere else in your name.

    4. Can a married couple apply for two separate interest subsidies for two separate home loans under PMAY-Urban?

      No, a married couple is only eligible for a single house under the PMAY-Urban scheme.

    5. What is the deadline for the Credit-Linked Subsidy Scheme for the MIG category?

      The deadline for the CLSS for affordable housing for the MIG category is now March 2021.


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