This is a particular scheme by the Indian Government that takes limelight to make it better for homeless people in India.
Some of the main facts that one should be aware of, is that the slum or homeless populations are growing at 34% and are expected to reach a whopping 18 million soon. Also, there are 2 million non-slum poor in urban cities that also need a home. Our PM Shri Narendra Modi has come up with the Pradhan Mantri Awas Yojana, which is a housing project for the 20 million people we just discussed earlier.
If this scheme does work, it would at least help to reduce India's major contribution with one of the highest homeless populations in the World. Also it is essential to understand the different plans for rural and urban PMAY which improves the quality of life for urban people, regardless of their income groups
Under the Pradhan Mantri Awas Yojana (PMAY), the main proposal was to constrict 20 million homes for the those people belonging to the Low Income Families and Economically Weaker Sections in the identified urban and semi urban areas by 2022. The central government has already pushed the subsidy of INR 2 lakh crores for this. Housing for all 2022 has mainly four categories, which are:
As per these components, government aid will be an amount between INR 1 lakh and INR 2.30 lakhs based on the beneficiary's eligibility.
The beneficiary of this scheme is defined as the following:
|Scheme||Pradhan Mantri Awas Yojana|
|Brief introduction about Pradhan Mantri Awas Yojana||The Pradhan Mantri Awas Yojana aims to provide cost effective housing solutions for the economically weaker sections of the society. The objective is construct 2 crore houses across the country by 2022.|
|Objective||Affordable housing for all|
|Target group||Those who belong to the economically weaker sections of society and low income groups|
|Areas where homes will be constructed||Urban areas|
|Launched by||Prime Minister Narendra Modi|
|Number of phases||Three|
|Date of launch||June 25,2015|
|Subsidy range||Between Rs.1 lakh and Rs.2.30 lakh|
Based on recent estimates, as of September 2016, the population of the urban dwellers in India increased at an alarming rate and is expected to see a greater rate of growth in the following years. It is said that by 2050, urban dwelling population will rise to 814 million people. The calculation predicted is almost twice the number that already reside in urban areas. The major challenges also include providing people with housing options that are affordable and other major related concerns such as sanitation along with sustainable development. The Ministry also has to ensure a sustainable and safe environment for the urban population.
This scheme launch is intended to target urban areas of the following options to States or Union Territories as well as cities as mention earlier.
The Pradhan Mantri Awas Yojana will be executed in three phases. Refer to the below tables for more details:
|Start date||April 2015|
|End date||March 2017|
|Start date||April 2017|
|End date||March 2019|
|Start date||April 2019|
|End date||March 2022|
|Cities covered||Remaining cities|
The Socio Economic and Caste Census of 2011 (SECC 2011) is going to be utilized to identify and select the list of beneficiaries under the Gramin plan of the PMAY.
The village panchayats along with tehsils will be considered for consultation of beneficiaries before making the list under the rural housing scheme. This is going to be done in order to ensure transparency of the project and also make sure that only the deserving receive the aid in housing.
The following demographics are eligible for the scheme:
Simply check whether you are eligible under the scheme and apply by completing the following instructions:
Home loan interest rate is around 9% at present. So, if 4% interest subsidy on a loan of up to Rs.9 Lakhs is applied, then the E.I.R (Effective Interest Rate) would be 5%, which will benefit the borrowers.
|Eligibility||Income Range||Carpet Area||Rate of Interest||Subsidy Amount|
|Economically weaker sections||Max of Rs.6 lakh||60 sqm||6.5%||Rs.6 lakh|
|Lower Income groups||Max of Rs.6 lakh||60 sqm||6.5%||Rs.6 lakh|
Pradhan Mantri Awas Yojana scheme aims to simplify the process of purchasing a home for the urban poor and weaker sections of society through EMIs at reasonable rates of interest. The rate of interest is comparatively much lesser than commercial rates, thus offering people subsidised loans.
To calculate the EMI log on to the Pradhan Mantri Awas Yojana website and fill in the following details: http://pmaymis.gov.in/EMI_Calculator.aspx
Once the following details are submitted, click on the ‘Calculate’ option. This will give you the monthly installment or EMI payable in rupees.
Housing Finance Companies Under PMAY
|IKF Housing Finance Private Limited|
|Ummeed Housing Finance Private Limited|
|West End Housing Finance Limited|
|Viva Home Finance Ltd.|
|Vastu Housing Finance Corporation Ltd|
|USB Housing Finance Corporation Ltd|
|Tata Capital Housing Finance Ltd.|
|Swarna Pragati Housing Microfinance Private Limited|
|Swagat Housing Finance Company Ltd.|
|Supreme Housing Finance Limited|
|Sundaram BNP Paribas Home Finance Ltd.|
|SRG Housing Finance Ltd.|
|Shubham Housing Development Finance Company Pvt. Ltd.|
|Shriram Housing Finance Ltd.|
|SEWA Grih Rin Ltd.|
|Saral Home Finance Ltd.|
|Sahara Housing Finance Corporation Ltd|
|Repco Home Finance Ltd.|
|Religare Housing Development Finance Corporation Ltd.|
|Reliance Home Finance Ltd.|
|RAAS Housing Finance (India) Ltd.|
|PNB Housing Finance Ltd.|
|Panthoibi Housing Finance Company Ltd.|
|Orange City Housing Finance Ltd.|
|North East Region Housing Finance Ltd.|
|Nivera Home Finance Ltd|
|New Habitat Housing Finance and Development Ltd.|
|National Trust Housing Finance Ltd.|
|Muthoot Housing Finance Company Ltd.|
|Muthoot Homefin Ltd.|
|Micro Housing Finance Corporation Ltd|
|Mentor Home Loans India Ltd.|
|MAS Rural Housing and Mortgage Finance Ltd.|
|Manappuram Home Finance Pvt. Ltd.|
|Manipal Housing Finance Syndicate Ltd.|
|Mamata Housing Finance Company Pvt. Ltd.|
|Mahindra Rural Housing Finance Ltd.|
|Magma Housing Finance|
|LIC Housing Finance Ltd.|
|L&T Housing Finance Ltd.|
|Khush Housing Finance Ltd.|
|India Shelter Finance Corporation Ltd.|
|India Infoline Housing Finance Ltd.|
|India Home Loan Ltd.|
|India Bulls Housing Finance Ltd.|
|ICICI Home Finance Company Ltd.|
|Housing Development Finance Corporation Ltd.|
|Housing and Development Corporation Limited|
|Home First Finance Company Ltd.|
|Hinduja Housing Finance Limited|
|HBN Housing Finance Ltd.|
|Habitat Microbuild India Housing Finance Company Pvt. Ltd.|
|GRUH Finance Ltd.|
|GIC Housing Finance Ltd|
|Fullerton Home Finance Company Ltd|
|Fast Track Housing Finance Company Ltd.|
|Equitas Housing Finance Pvt. Ltd.|
|Edelweiss Housing Finance Pvt. Ltd|
|DMI Housing Finance Pvt. Ltd.|
|DHFL Vyasa Housing Finance Ltd|
|Dewan Housing Finance Corporation Ltd.|
|Cent Bank Home Finance Ltd.|
|Capri Global Housing Finance Private Limited|
|Capital First Home Finance Ltd.|
|Can Fin Homes Ltd.|
|AU Housing Finance Ltd.|
|Aspire Home Finance Corporation Ltd.|
|Aptus Value Finance Corporation Ltd.|
|Aptus Value Housing Finance India Ltd.|
|Akme Star Housing Finance Ltd.|
|Aditya Birla Housing Finance Ltd.|
|Aadhar Housing Finance Ltd.|
|Central Bank of India|
|State Bank of Patiala|
|United Bank of India|
|State Bank of Travancore|
|State Bank of Mysore|
|State Bank of Hyderabad|
|State Bank of Bikaner & Jaipur|
|Punjab National Bank|
|Punjab & Sind Bank|
|Oriental bank of Commerce|
|Indian Overseas Bank|
|Bhartiya Mahila Bank Ltd.|
|Bank of Maharashtra|
|Bank of India|
|Bank of Baroda|
|South Indian Bank Ltd.|
|Nainital Bank Ltd.|
|Lakshmi Vilas Bank|
|J & K Bank|
|Dhanlaxmi Bank Ltd|
|City Union Bank|
|The Federal Bank Ltd.|
|Catholic Syrian Bank|
|Tamilnad mercantile Bank Ltd|
|Karur Vysya Bank Ltd.|
|Karnataka Bank Ltd.|
|ICICI bank Ltd.|
|DCB Bank Ltd.|
|Axis bank Ltd.|
|Ellaquai Dehati bank|
|Vanachal Gramin Bank|
|Uttarbanag Kshetriya Gramin Bank|
|Telangana Grameena Bank|
|Satlij Gramin Bank|
|Sarva UP Gramin Bank|
|Rajasthan Marudhara Gramin Bank|
|Meghalaya Rural Bank|
|Jharkhand Gramin Bank|
|J& K Grameen Bank|
|Bihar Gramin Bank|
|Baroda Rajasthan Kshetriya Gramin Bank|
|Bangiya Gramin Vikas Bank|
|Chaitanya Godavari Grameena Bank|
|Central Godavari Grameena Bank|
|Sarva Haryana Gramin Bank|
|Kaveri Grameena Bank|
|Punjab GRamin Bank|
|Baroda Uttar Pradesh Gramin Bank|
|Gramin Bank of Aryavart|
|Uttar Bihar Gramin Bank|
|Pandyan Grama Bank|
|Kashi Gomti Samyut Bank|
|Odisha Gramiya Bank|
|Madhyanchal Gramin Bank|
|Tripura Gramin Bank|
|Chhattisgarh Rajya Gramin Bank|
|Utal Grameen Bank|
|Saurashtra Gramin Bank|
|Pragathi Krishna Gramin Bank|
|Narmada Jhabua Gramin|
|Nagaland Rural Bank|
|Mizoram Rural Bank|
|Manipur Rural Bank|
|Maharashtra Gramin Bank|
|Madhya Bihar Gramin Bank|
|Langpi Dehangi Rural Bank|
|Kerala Gramin Bank|
|Karnataka Vikas Grameena Bank|
|Dena Gujarat Gramin Bank|
|Baroda Gujrat Gramin bank|
|Assam Gramin Bank|
|Arunachal Pradesh Rural Bank|
|Andhra Pradesh Grameena Vikas Bank|
|Allahabad UP Gramin Bank|
|Janta Sahakari Bank Ltd|
|The Punjab State Cooperative Bank Ltd.|
|Uttarakhand State Cooperative Bank Ltd.|
|Shree Panchganag Nagari Sahakari Bank Ltd.|
|Kerala State Co-Operative Bank Ltd.|
|Karad Urban Co-operative Bank Ltd.|
|Meghalaya Co-Operative Apex Bank Ltd|
|Sangli Urban Co-Operative Bank Ltd.|
|The Surat People’s Cooperative Bank Ltd.|
|The Goa State Co-Operative Bank Ltd.|
|Sikkim State Co-Operative Bank Ltd.|
|Shikshak Sahakari Bank Ltd.|
|Sardar Bhiladwala Pardi People’s Co-Operative Bank Ltd.|
|Odisha State Cooperative Bank|
|Nutan Nagarik Sahakari Bank Ltd.|
|Mizoram Cooperative Apex Bank Ltd.|
|Mehsana Urban Co-Operative Bank Ltd.|
|Mahanagar Co-Operative Bank Ltd.|
|Kalupur Commercial Co-operative Bank Ltd.|
|Jharkhand State Co-Operative Bank Ltd.|
|J&K State Cooperative Bank|
|Cosmos Co-operative Urban Bank Ltd.|
|Cosmos Co-operative Urban Bank Ltd.|
|Chhattisgarh Rajya Sahakari Bank Maryadit|
|Bihar State Co-operative Bank Ltd.|
|Jalgaon Janata Sahakari Bank Ltd.|
|Sarvodaya Commercial Co- operative Bank|
|Citizen Credit Co-op Bank Limited|
|The Nawangar Co-operative Bank Ltd.|
|The Greater Bombay Co- operative Bank Ltd.|
|The Bharat Co-operative Bank (Mumbai) Ltd.|
|The West Bengal State Co- operative Bank Ltd.|
|The Kalyan Janata Sahakari Bank Ltd.|
|The Gujarat State Co-operative Bank Ltd|
|The Ahmedabad Mercantile Co- operative Bank Ltd.|
|Shri Mahila Sewa Sahakari Bank Ltd.|
|Rajkot Nagarik Sahakari Bank Limited|
|Punjab & Maharashtra Co- operative Bank Ltd|
|Prime Co-operative Bank Ltd.|
|Bombay Mercantile Co-operative Bank|
By careful assessment, contemplation and debate, the government has chosen a list of cities and towns from the following states.
In case of any queries relating to the application process, interest rates and any other scheme related queries, customers can contact the Pradhan Mantri Awas Yojana toll free helpline number:
Those facing any issues related to the application process can contact the above toll free numbers according to the locations.
On 2nd January, 2017, Narendra Modi, the Prime Minister of India, doubled the loan amount under Pradhan Mantri Awas Yojana (PMAY) that is eligible for interest subsidy for urban areas.
The government will now provide the following under this scheme:
Apart from the above, the government will create 2 new middle income categories in urban areas under PMAY.
You still may have some questions, regarding some terms that you may not be familiar with or some queries that you may have about. Here are some of these most commonly asked questions about PMAY and PMAY Gramin:
Yes, this scheme gives priority to women who are running a family within the lower income groups. However, if your husband, father or any other family member that you reside with has applied, your application will be rejected.
You simply need to apply as a senior citizen, since all senior citizens are provided the priority for having access to Ground floor housing. However, ensure that you apply early since the priorities among senior citizens for ground floor is also shared with differently able beneficiaries as well.
People refer to Direct Benefit Transfer as DBT. This means that the beneficiaries will receive the funds they are expected to receive, in the form of installments, under the scheme, directly in their bank accounts, instead of having to go through random offices and banks. The funds allocated for the rural housing scheme under PMAY will also be sent off to the beneficiaries through direct fund transfer to the bank accounts of the listed and identified beneficiaries. Labour allocation and labour training for the Awas Yojana
The importance of transparency in the whole housing project is essential, right from the scheme rules and regulations being created to the basic requirement of sanitation being implemented in the housing. All of that must be followed, which requires geo tagging, to have all information available for parties involved, whenever needed. Geo tagging, basically means adding meta data to a photograph or map of your home located in the map. It also helps retain updated satellite imagery of the progress of the project. This helps to remotely monitor each unit, without having to be there in person.
The PMAY project is supposed to last until 2022. But, this is the date, which ensures that all the regions in India have beneficiaries, who can avail the scheme. The construction and ultimately the beneficiaries moving in may take longer.
Simply go online, and check for the list of cities in the the first Phase of the PLAY project.
Transgenders often belong to low income groups and economically challenged groups. As long as they also cover all the other eligibility requirements, such as documentation or a single applicant from a family, this demographic will not be ignored by this scheme. However if you are not in the income groups required by the schemes, you will not be eligible for the scheme.
Your annual income should not be more than Rs. 6 lakhs. However, there are no lower limits for the PMAY income requirement.
Eco-friendly projects do not mean that the PMAY constructions will make the ultimate housing price expensive. It only means that it will ensure that the environment is not harmed in anyway. It is essential to ensure that people in the future and that too in the near future do not perish due to environmental hazards, considering that global warming is a real phenomenon and is hitting our country, more than we realize.
These are basically nodal agencies that are identified by the Ministry or Government to function as bodies which implement Credit linked subsidy.
Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls
The Mahatma Gandhi National Rural Employment Guarantee Act enables the Government to hire enough labour for construction of homes under PMAY in the rural regions. The beneficiaries under the P M Awas Yojana will have access to unskilled labour for 90 days through MGNREGA. Already 30,000 masons have been trained for the purpose as of September 2016.
Let us take a look at the equation to quickly understand what FAR means:
These agencies comprise of any Urban Local Bodies, Housing Boards, Development Authorities, etc., unlike nodal agencies that have been picked by State Government or SLSMC for the purpose of implementing Housing for PMAY missions.
This term simply ensures the availability of a particular amount that is additional on the built up with respect to the surrendered or relinquished area of land which allows the owner to use an added built up area for himself/herself in some other land.
Anyone who belongs to the economically weaker section of the society and does not own a ‘pucca’ house
The individuals availing the benefit under the scheme are referred to as the beneficiary family
20 years to avail subsidy. If extended, subsidized rates will not be applicable
Yes, it is so for lower income groups and economically weaker sections of society
No. The scope of the scheme is limited to urban areas.
Yogi Adityanath is the Chief Minister of Uttar Pradesh. He stated that Government intends to offer shelter to all the people of Uttar Pradesh. He added that 10 lakh houses will be built by the State Government within a period of 1 year. This will be done under the Pradhan Mantri Awas Yojana. In UP, 48 lakh people do not have homes to stay. This initiative is being taken to reduce that number.
Rajiv Pratap Rudy stated that the Central Government will ensure that employment opportunities increase in Uttar Pradesh in the next 5 years. This will happen via skill development of the people in UP. Yogi Adityanath added that 10 lakh people will be inducted in the skill development programme this year. In 5 years, the State Government of Uttar Pradesh aims at training 70 lakh youngsters.
1st August 2017
Approximately, 30 thousand people working in textile and beedi factories will be benefited under the Pradhan Mantri Awas Yojana. As per reports, these people are going to be the first ones to enjoy the benefits under this scheme. The Pradhan Mantri Awas Yojana aims at building the houses that can be easily affordable for the people.
Housing and Urban Affairs Ministry approved the project and offered an assistance of Rs.450 crore. The building proposition for these 30,000 affordable houses has been kept forward by the Raynagar Cooperative Housing Federation. The members of the federation include textile and beedi factory workers. The other members of this group come from the economically weaker sections of the society. This particular project will encounter an expenditure of Rs.1,811 crore. A funding of Rs.300 crore has been offered by the Maharashtra Government.
31st July 2017
Though the interest subsidy scheme on home loans was announced earlier this year, so far there are only 250 people who have availed the credit-linked subsidy scheme (CLSS) for the middle-income group (MIG). It was discovered in one of the recent reviews which has resulted in the government directing the National Housing Bank (NHB), the Housing and Urban Development Corporation Limited (HUDCO), and the public sector banks (PSBs) to promote CLSS on housing loan. The government is aiming at providing at least 2 lakh home loans under this initiative by end of this year.
20th July 2017
The government ambitious plan of ‘housing for all’ under the Pradhan Mantri Awas Yojana (PMAY) is facing a lot of challenges which makes it difficult to achieve the scheme’s goal by 2022. From the scarcity of land to complicated property records, illegal possession of properties, etc. have slowed down the Pradhan Mantri Awas Yojana (PMAY) scheme which is expected to ensure affordable housing for all by 2022. Though the government has already approved over 1.5 million house in urban regions and built over 100,000 houses, it is still not sufficient to provide housing for all. Additionally, there are over a million houses which are vacant but not on rent. The government will need to look into these bottlenecks to understand the root cause and take necessary action to achieve ‘housing for all’ by 2022. The government is already working with many of the leading builders/developers and banks to build more affordable homes in rural as well as urban areas.
14th July 2017
All the providers of housing finance expect that the affordable homes segment will grow by 25% due to the subsidy that is offered under the PMAY (Pradhan Mantri Awas Yojana). This particular scheme can be availed till December 2017. It offers a subsidy of 4% on the home loans that go up to Rs.9 lakh for people who earn up to Rs.12 lakh each year. For people earning more than Rs.18 lakh in a year, a subsidy of 3% on the loans up to Rs.12 lakh can be enjoyed.
MD of Liases Foras, Pankaj Kapoor stated that the maximum growth in sales was 31% and it was reported in affordable homes segment. This segment includes properties that cost less tha Rs.25 lakh. There was decline in sales by 4% for the ultra-luxury homes segment. The period between October 2016 and December 2016 witnessed a slump after the demonetisation, but the demand was healthy again between January 2017 and March 2017. According to Developer Niranjan Hiranandani, the sales at his project in Thane has been good for the apartments below 600 square feet. He added that a further surge will be noticed after other projects hit the market and individuals start availing tax benefits. Indiabulls Housing, one of the leading mortgage companies in India told the investors that a person seeking an amount of Rs.24 lakh, effective rate he/she will pay stands at 0.42% after considering all the subsidies and tax breaks. The effective rate on home loans in the affordable housing segment (mid-income) is almost at zero levels. Ownership is an affordable option as rental yields stand at 3.2%.
19th June 2017
The UP Housing and Development Board has announced that subsidies would be provided to people belonging to various income groups who come under the Pradhan Mantri Awas Yojna (PMAY) so that affordable housing will just be an arm’s length away for people residing in Uttar Pradesh. This offer will be extended by the board under the “Credit Linked Subsidy Income” where people will be given subsidies based on a first come first serve basis. People whose annual income falls in the Rs.3 lakh or lower bracket will be entitled to a 6.5% subsidy for homes that measure up to 30 sq.mt. in area. A 6.5% subsidy is provided to people whose annual income falls in the Rs.3-6 lakh bracket for a house that measures up to 60 sq.mt. in area. People whose annual income falls in the Rs.6-12 lakhs bracket can avail 4% subsidy for a house that measures 90 sq.mt in area and 3% subsidy is provided to individuals with an annual salary that falls in the Rs.12-18 lakhs bracket for a house that measures 110 sq.mt. in area.
The board has announced that this subsidy in home loan interest will be provided for loans that have been sanctioned for a tenure of 20 years.
6th June 2017
Supporting the Modi-led government’s campaign to provide housing for all from the below the poverty line and low income families by 2022, ICICI Bank and HDFC also cut the interest rates for home loans by 0.3% to match the interest rate offered by State Bank of India. ICICI Bank MD, Chanda Kochhar, said that the bank is committed to supporting the government's vision to provide housing for all by 2022. He added by saying that customers of Economically Weaker Section (EWS) and Low Income Group (LIG) can avail the dual benefit of low interest rates from us and the Credit Linked Subsidy under the Pradhan Mantri Awas Yojana.
29th May 2017
Ever since the Modi-led government launched the “housing for all” campaign under PMAY, top banks around the country have slashed the interest rates for home loans. Currently, Axis Bank, SBI, HDFC and ICICI Bank are offering home loans at an interest rate of 8.35%. Having cut the home loan rates by 15-30 basis points, most banks have said the offer at these rates would be for a limited time only.
23rd May 2017
The government of Orissa has sanctioned 31 projects under the Pradhan Mantri Awas Yojna. Under the scheme, around 10,600 houses will be constructed in more than 25 municipal areas. Apart from that, the government has also sanctioned the construction of 50,000 houses for the poor living in urban localities. These houses will be constructed under the BLC scheme, slum development project, and affordable housing project. The housing projects sanctioned by State Level Sanction-cum-Monitoring Committee (SLSMC) will be sent to the Ministry of Housing and Urban Poverty Alleviation for the final approval.
18th May 2017
The initiative of ‘housing for all’ by Prime Minister Narendra Modi has brought together few of the leading developers, builders, and financing firms to improve the growth of realty sector in India. In the Union Budget, the government also announced the availability of interest rate subsidy for the middle-income group on home loans. Following the changes, most lenders have noticed a significant growth in the total number of home loan application. There are many home loan financing companies who are expecting a positive change to the reality sector in India. The affordable housing schemes with the benefits are becoming the key to the growth of housing finance firms in India.
10th May 2017