Pradhan Mantri Awas Yojana (PMAY)
The Pradhan Mantri Awas Yojana(PMAY) has been the talk of the town since it was introduced by Prime Minister, Narendra Modi on 1 June 2015. PMAY Scheme is an initiative provided by the Government of India which aims at providing affordable housing to the urban poor. The mission of this initiative is to provide housing for all by the year 2022.
Under this scheme, affordable houses will be built in selected cities and towns using eco-friendly construction methods for the benefit of the urban poor population in India. Also, under the Credit Linked Subsidy Scheme, beneficiaries under PM Awas Yojana are eligible for interest subsidy if they avail a loan to purchase or construct a house.
The government’s housing for all initiative, known as Pradhan Mantri Awas Yojana (PMAY), is quite likely to get a 50 percent raise in the upcoming budget allocation this year. This surge is driven by the government’s plan to build more than two crore houses in urban and rural areas.
The PMAY scheme is divided into two components - rural and urban. In the first case, the government plans to construct one crore new housing units by the end of March 2019 and of these, 51 lakh houses need to be built by March 2018. The government has set a similar target for PMAY Urban as well.
Considering that the housing scheme is moving at a slow pace, allocating additional funds is likely help it accomplish its goals. In the previous budget, Rs. 23,000 crore was allocated for the PMAY Rural while Rs. 6,042 crore was allocated for its urban counterpart.
To achieve its target of constructing 51 lakh houses in rural India, the Ministry of Rural Development is working together with the government of different states. Month-wise targets have been set up to complete the construction of the houses and so far, the government appears to be on track.
The government will use the The Socio Economic and Caste Census of 2011 (SECC 2011) to identify and select the list of PMAY beneficiaries. 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.
Before you fill the PMAY Scheme application, make sure that you have checked your eligibility and your name is listed in the beneficiary list. You can check if you are eligible by submitting your BPL certificates to the lending institution and they will notify you if you are eligible to apply for PM Awas Yojana scheme. Alternatively, you can also check the list of beneficiaries online by visiting the official website. The list of beneficiaries available in the website is periodically updated. Make sure you check the recent list.
The online application process to apply for PMAY Scheme is very simple, convenient, and saves a lot of time. Make sure you have your savings bank account details and your household income details when you are applying for Pradhan Mantri Awas Yojana online.
|Particulars||MIG 1||MIG 2|
|Annual income (Household Income)||Between Rs.6 lakh to Rs.12 lakh||Between Rs.12 lakh to Rs.18 lakh|
|Subsidy on interest||4.00%||3.00%|
|Tenure of the loan to qualify for the subsidy||20 years||20 years|
|Loan amount to qualify for the subsidy||Rs.9 lakh||Rs.12 lakh|
|Minimum carpet area(Square metres)||90 square metres||110 square metres|
|Maximum carpet area(Square feet)||968.5 square feet||1,184 square feet|
|Discount rate for NPV||9.00%||9.00%|
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.
Pradhan Mantri Awas Yojana targets specific groups like:
The PMAY Scheme will be executed in three phases. Refer to the below tables for more details:
|Cities covered||Remaining cities|
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|
|Economically weaker sections||Max of Rs.6 lakh||30 sqm||6.50%|
|Lower Income groups||Max of Rs.6 lakh||60 sqm||6.50%|
|Middle Income Group 1||Less than Rs.12 lakh||110 sqm||4.00%|
|Middle Income Group 2||Between Rs.12 lakh and Rs.18 lakh||150sqm||3.00%|
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.
PM Awas Yojana Technology Sub Mission will cover following:
The bank from where the individual is taking the loan will claim the subsidy benefit for the eligible applicants from the National Housing Bank (NHB). The National Housing Bank will then check to investigate whether anyone is making multiple applications under the scheme. Once confirmed, the CLSS or subsidy amount will be given to the borrower's Bank. Once the amount is received, the money would be credited directly to the Loan Account.
In case of any queries relating to the application process, interest rates and any other scheme related queries, customers can contact the 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 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 Pradhan Mantri Awas Yojana.
|Andaman and Nicobar||Madhya Pradesh|
|D and N Haveli||Rajasthan|
|Daman & Diu||Sikkim|
|Himachal Pradesh||Uttar Pradesh|
|Jammu & kashmir||Uttarakhand|
|IKF Housing Finance Private Limited||Manipal Housing Finance Syndicate Ltd.|
|Ummeed Housing Finance Private Limited||Mamata Housing Finance Company Pvt. Ltd.|
|West End Housing Finance Limited||Mahindra Rural Housing Finance Ltd.|
|Viva Home Finance Ltd.||Magma Housing Finance|
|Vastu Housing Finance Corporation Ltd||LIC Housing Finance Ltd.|
|USB Housing Finance Corporation Ltd||L&T Housing Finance Ltd.|
|Tata Capital Housing Finance Ltd.||Khush Housing Finance Ltd.|
|Swarna Pragati Housing Microfinance Private Limited||India Shelter Finance Corporation Ltd.|
|Swagat Housing Finance Company Ltd.||India Infoline Housing Finance Ltd.|
|Supreme Housing Finance Limited||India Home Loan Ltd.|
|Sundaram BNP Paribas Home Finance Ltd.||India Bulls Housing Finance Ltd.|
|SRG Housing Finance Ltd.||ICICI Home Finance Company Ltd.|
|Shubham Housing Development Finance Company Pvt. Ltd.||Housing Development Finance Corporation Ltd.|
|Shriram Housing Finance Ltd.||Housing and Development Corporation Limited|
|SEWA Grih Rin Ltd.||Home First Finance Company Ltd.|
|Saral Home Finance Ltd.||Hinduja Housing Finance Limited|
|Sahara Housing Finance Corporation Ltd||HBN Housing Finance Ltd.|
|Repco Home Finance Ltd.||Habitat Microbuild India Housing Finance Company Pvt. Ltd.|
|Religare Housing Development Finance Corporation Ltd.||GRUH Finance Ltd.|
|Reliance Home Finance Ltd.||GIC Housing Finance Ltd|
|RAAS Housing Finance (India) Ltd.||Fullerton Home Finance Company Ltd|
|PNB Housing Finance Ltd.||Fast Track Housing Finance Company Ltd.|
|Panthoibi Housing Finance Company Ltd.||Equitas Housing Finance Pvt. Ltd.|
|Orange City Housing Finance Ltd.||Edelweiss Housing Finance Pvt. Ltd|
|North East Region Housing Finance Ltd.||DMI Housing Finance Pvt. Ltd.|
|Nivera Home Finance Ltd||DHFL Vyasa Housing Finance Ltd|
|New Habitat Housing Finance and Development Ltd.||Dewan Housing Finance Corporation Ltd.|
|National Trust Housing Finance Ltd.||Cent Bank Home Finance Ltd.|
|Muthoot Housing Finance Company Ltd.||Capri Global Housing Finance Private Limited|
|Muthoot Homefin Ltd.||Capital First Home Finance Ltd.|
|Micro Housing Finance Corporation Ltd||Can Fin Homes Ltd.|
|Mentor Home Loans India Ltd.||AU Housing Finance Ltd.|
|MAS Rural Housing and Mortgage Finance Ltd.||Aspire Home Finance Corporation Ltd.|
|Manappuram Home Finance Pvt. Ltd.||Aptus Value Finance Corporation Ltd.|
|Aditya Birla Housing Finance Ltd.||Aptus Value Housing Finance India Ltd.|
|Aadhar Housing Finance Ltd.||Akme Star Housing Finance Ltd.|
|Public Sector Banks||Private Sector Banks||Regional Rural Banks||Co-operative Banks|
|Vijaya Bank||South Indian Bank Ltd.||Ellaquai Dehati bank||Janta Sahakari Bank Ltd|
|Central Bank of India||Nainital Bank Ltd.||Purvanchal Bank||The Punjab State Cooperative Bank Ltd.|
|State Bank of Patiala||Lakshmi Vilas Bank||Vanachal Gramin Bank||Uttarakhand State Cooperative Bank Ltd.|
|United Bank of India||J & K Bank||Uttarbanag Kshetriya Gramin Bank||Shree Panchganag Nagari Sahakari Bank Ltd.|
|UCO Bank||Dhanlaxmi Bank Ltd||Telangana Grameena Bank||Kerala State Co-Operative Bank Ltd.|
|Syndicate Bank||City Union Bank||Satlij Gramin Bank||Karad Urban Co-operative Bank Ltd.|
|State Bank of Travancore||Yes Bank||Sarva UP Gramin Bank||Meghalaya Co-Operative Apex Bank Ltd|
|State Bank of Mysore||The Federal Bank Ltd.||Rajasthan Marudhara Gramin Bank||Sangli Urban Co-Operative Bank Ltd.|
|State Bank of Hyderabad||Karur Vysya Bank Ltd.||Meghalaya Rural Bank||The Surat People’s Cooperative Bank Ltd.|
|State Bank of Bikaner & Jaipur||Karnataka Bank Ltd.||Jharkhand Gramin Bank||The Goa State Co-Operative Bank Ltd.|
|Punjab National Bank||ICICI bank Ltd.||J& K Grameen Bank||Sikkim State Co-Operative Bank Ltd.|
|Punjab & Sind Bank||DCB Bank Ltd.||Bihar Gramin Bank||Shikshak Sahakari Bank Ltd.|
|Indian Bank||Axis bank Ltd.||Baroda Rajasthan Kshetriya Gramin Bank||Sardar Bhiladwala Pardi People’s Co-Operative Bank Ltd.|
|Dena Bank||Catholic Syrian Bank||Bangiya Gramin Vikas Bank||Odisha State Cooperative Bank|
|Corporation Bank||Tamilnad mercantile Bank Ltd||Chaitanya Godavari Grameena Bank||Nutan Nagarik Sahakari Bank Ltd.|
|Canara Bank||Central Godavari Grameena Bank||Mizoram Cooperative Apex Bank Ltd.|
|Bhartiya Mahila Bank Ltd.||Sarva Haryana Gramin Bank||Mehsana Urban Co-Operative Bank Ltd.|
|Bank of Maharashtra||Kaveri Grameena Bank||Mahanagar Co-Operative Bank Ltd.|
|Bank of India||Dena Gujarat Gramin Bank||Kalupur Commercial Co-operative Bank Ltd.|
|Bank of Baroda||Baroda Gujrat Gramin bank||Jharkhand State Co-Operative Bank Ltd.|
|Andhra Bank||Assam Gramin Bank||J&K State Cooperative Bank|
|Allahabad Bank||Arunachal Pradesh Rural Bank||Cosmos Co-operative Urban Bank Ltd.|
|Oriental bank of Commerce||Andhra Pradesh Grameena Vikas Bank||Cosmos Co-operative Urban Bank Ltd.|
|Indian Overseas Bank||Allahabad UP Gramin Bank||Chhattisgarh Rajya Sahakari Bank Maryadit|
|Punjab GRamin Bank||Bihar State Co-operative Bank Ltd.|
|Baroda Uttar Pradesh Gramin Bank||Jalgaon Janata Sahakari Bank Ltd.|
|Gramin Bank of Aryavart||Sarvodaya Commercial Co- operative Bank|
|Prathama Bank||Citizen Credit Co-op Bank Limited|
|Uttar Bihar Gramin Bank||The Nawangar Co-operative Bank Ltd.|
|Pandyan Grama Bank||The Greater Bombay Co- operative Bank Ltd.|
|Kashi Gomti Samyut Bank||The Bharat Co-operative Bank (Mumbai) Ltd.|
|Odisha Gramiya Bank||The West Bengal State Co- operative Bank Ltd.|
|Madhyanchal Gramin Bank||The Kalyan Janata Sahakari Bank Ltd.|
|Tripura Gramin Bank||The Gujarat State Co-operative Bank Ltd|
|Chhattisgarh Rajya Gramin Bank||The Ahmedabad Mercantile Co- operative Bank Ltd.|
|Utal Grameen Bank||Shri Mahila Sewa Sahakari Bank Ltd.|
|Saurashtra Gramin Bank||Rajkot Nagarik Sahakari Bank Limited|
|Pragathi Krishna Gramin Bank||Punjab & Maharashtra Co- operative Bank Ltd|
|Narmada Jhabua Gramin||Prime Co-operative Bank Ltd.|
|Nagaland Rural Bank||Bombay Mercantile Co-operative 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|
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 abled 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 metadata 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.
GST Rate of 18% Applicable for All Financial Services Effective July 1, 2017.