Pradhan Mantri Awas Yojana (PMAY)

The Pradhan Mantri Awas Yojana (a.k.a. PMAY) is a government initiative that began on 25^th June, 2015. India’s massive urban poor, and economically disparaged sections of society require additional assistance if they are to afford housing in urban sectors. It’s a revival of previous housing-assistance schemes that aims to reduce the financial liability of the entire home loan process. The MoHUA (Ministry of Housing Finance and Urban Affairs) is tasked with executing this subsidy scheme across India. PMAY is this the latest attempt to addresses the shortage of “pucca” houses among the – Lower-Income Group, Economically Weaker Sections, Middle-Income Group, and also, the slum dwellers- and aims to provide pucca house to all the eligible beneficiaries by the year 2022.

Only those Indian citizens without “pucca” (fully built houses whose walls and roof are permanent structures that can withstand all seasons of the year) are eligible to apply for a home loan under this scheme. In this way, the government ensures that the subsidy goes to those that are truly deserving (because their income level/economic standing/caste/etc. have prevented them and their family from ever owning a permanent or “pucca” house.

Under the PMAY scheme, the Government of India disburses financial assistance to beneficiaries through banks and lending institutes that have registered with PMAY. The main vertical under this scheme is the Credit Linked Subsidy (CLS) which is processed under two major coordinating agencies under Central Government –

• The National Housing Bank (NHB)
• Housing & Urban Development Corporation (HUDCO)

Types of PMAY scheme

The eligible beneficiaries under the PMAY scheme can get a maximum subsidy on overall interest up to Rs.2.67 lakh. When a beneficiary applies for the subsidy, the application form is forwarded to the NHB (National Housing Bank). If they fulfill the eligibility criteria of the Credit Linked Subsidy Scheme (CLSS), their application is processed. The two major components of the (PMAY) scheme are –

1. PMAY Urban (PMAY-U): This plan aims to fulfill the need of affordable housing among the urban poor including the slum dwellers. It provided affordable housing loan at an interest rate of 6.50% p.a. for a tenure of 20 years.  
2. PMAY Gramin (PMAY-G): This plan seeks to address the gap of affordable housing among the rural poor. It aims to provide affordable housing along with other basic amenities like – proper drinking water facilities, adequate housing infrastructure, sanitization facilities, proper electricity connection, LPG gas connection, availability of Jan Dhan Bank, etc.- by the year 2022.

The entire project of PMAY housing scheme will be working in 3 different phases. Which are:

Features of Pradhan Mantri Awas Yojana (PMAY) scheme

Listed below are the features of PMAY scheme:

• The PMAY housing scheme provides an over subsidy of up to 6.5% p.a. with a repayment tenure of 20 years.
• Senior citizens and differently abled applicants will be allocated residential domiciles on the ground floors for their special needs.
• The construction of the houses will be done using eco-friendly and sustainable technologies.
• The Credit Linked subsidy is implemented across all the statutory towns in India at the initial stages.
• The project is covered in 3 phases including – 4,041 statutory towns where 500 Class – I Cities will be given the first preferences.

Beneficiaries under the PMAY Scheme

This scheme offers substantial economic benefits to its beneficiaries. The applicants accepted for any loan under PMAY are scrutinized to ensure they fit within the definition of someone who is economically challenged (as defined by the government for this plan). There are other factor that determine whether an applicant is eligible for the PMAY scheme, listed below are the income backet-related factors that determine eligibility for this subsidy:

• Economically Weaker Section: Applicants that can prove with documentation that their family income was less than Rs.3,00,000, fall user the “EWS” category. To qualify as a beneficiary the applicant must provide supporting documents of their standard income while applying for the scheme.
• Lower-Income Group: Applicants reporting a yearly household income of Rs.3,00,000 – Rs.6,00,000 fall under the category of Lower-Income Group. However, they must provide the supporting documents to prove the same.
• Middle-Income group – I: Households that enjoy a yearly income of Rs.6,00,000 – Rs.12,00,000 can claim their subsidy by submitting the relevant documents confirming the same.
• Middle-Income Group – II: This category includes the households that have an annual family income of Rs.12,00,000 – Rs.18,00,000. However, they must provide the proof of their claimed level of income.
• Women: Women from the EWS or LIG category can apply to get the benefits under the PMAY scheme, once they provide the relevant documents to the authorities.
• Minority community: Applicant claiming to be from the minority community of the society such as – ST, SC, OBC, and others can avail the benefits under this scheme by providing the supporting documents stating the same.

PMAY CLSS – Credit Linked Subsidy scheme

The PM Awas Yojana focuses majorly on the Credit Linked Subsidy Scheme (CLSS) to provide affordable housing to the rural and urban poor across the country. It provides an overall subsidy of roughly 6.5% p.a. to the Economically Weaker Sections and to the Lower Income Groups with yearly household income of Rs.3,00,000 to Rs.6,00,000. The “Middle-Income group-I” with a household income of Rs.6,00,000 to Rs.12,00,000 gets an interest discount 4% p.a. whereas “Middle-Income Group-II” which reports a yearly household income of Rs.12,00,000 to Rs.18,00,000 gets an interest subsidy of 3% p.a.

Refer to the below mentioned table for more clarity:

You can calculate your interest subsidy here

To calculate the EMI, follow the below mentioned steps:

Step 1: Login to the PMAY website

Step 2: Fill the details – the total loan amount, interest rate, loan tenure

Step 3: Click on the ‘Calculate’ button.

The total monthly EMI will be displayed on the screen.

How to get an interest subsidy?

To get a subsidized rate of interest on your housing loan, follow the below mentioned steps:

• Select any bank or lending institute registered under the PMAY scheme and apply for a home loan.
• Fill out the loan application and submit it to the concerned officer.
• Once submitted, the bank or the lending institute will review the application to ensure the eligibility of the applicant. If approved, they will send the application to the Central Nodal Agency.
• The Central Nodal Agency will verify the application. Once approved, they will disburse the ‘subsidy amount’ to the concerned bank or the lending institute.
• The subsidy amount gets disburse to the beneficiary’s account link to their Aadhaar by the lending institutes, lowering the total loan amount.
• Once disbursed, the beneficiary can continue to pay the monthly EMIs on the basis of the balance loan amount.

Eligibility requirement

The central government uses the SECC 2011 (Socio Economic and Caste Census 2011) for identifying the beneficiaries under the PMAY scheme. Before making the list, the Gaon Panchayats and the Tehsils are consulted to identify and select the beneficiaries list under the PMAY housing scheme. This is done to ensure transparency and availability of the project to the needful. The general criteria to be eligible for PMAY housing scheme are:

• Neither the applicant or any member from the applicant’s family must own a “pucca” house irrespective of the location across the country.
• If the applicants are a married couple, either joint ownership or single ownership deal will be allowed. Also, either of the options will receive only one subsidy.
• Neither the applicant or any member of the applicant’s family should have availed a Central housing scheme loan before.

To learn more: PMAY Eligibility click here

Now you check you PMAY list by visiting the official PMAY website

Documents required

To avail the benefits of this subsidy scheme, the applicant must submit the required documents. Keeping copies of all documents in hand is important, as even one missing document can lead to the rejection of the application. Listed below are the documents required by both – salaried and self-employed applicants to avail the PMAY subsidy:

Documents required by salaried applicants:

Salaried applicants must submit the following documents while applying for the PMAY scheme and to avail its benefits:

Documents required for Pradhan Mantri Awas Yojana (PMAY) by self-employed applicants

Self-employed applicants must submit the following documents while applying for PMAY:

How to apply for PMAY scheme?

Before applying for PMAY scheme, it is important for an applicant to keep certain documents handy. Listed below are the documents required for applying for this scheme:

• The beneficiary’s Aadhaar details
• Household income details of the beneficiary
• Bank account details of the beneficiary

How to apply for the Pradhan Mantri Awas Yojana (PMAY) scheme online?

To apply for the PMAY scheme online, a beneficiary can follow the step-by-step guide listed below for a stress-free PMAY home loan application process:

Step 1: Login to the official website of PMAY.

Step 2: Go to ‘Citizen Assessment’ and select the category of the beneficiary – “Benefits under 3 components” or “slum dweller”.

Step 3: Enter the Aadhar details of the beneficiary and verify them. Once verified, fill the required details on the application form. Also, ensure the information provided is verified and correct, as even one bit of misinformation may lead to the rejection of the application.

Step 4:  Next, scroll down to the bottom and enter the “Captcha” provided.

Step 5: Click on the “submit” button and complete the application process.

How to apply for the PMAY offline?

If an applicant finds difficulties in submitting the application form online, they can reach out to the nearest Common Service Center (CSC) on any other lending institute/bank registered under the PMAY scheme. The applicant can ask for the relevant form and fill out the required details. The applicants also need to pay a minimum fee of Rs.25 (plus the GST) along with submitting the required documents.

Download the PMAY Application form here.

Helpline number

In case the applicants are facing any home loan application related issues or any other queries, they can contact the toll-free numbers listed below:

1. For Urban, HUDCO – 1800-11-6163
2. For Urban, NHB – 1800-11-3388/1800-11-3377
3. For Gramin – 1800-11-6446

List of nodal officers

FAQs

1. What is the expected time to get the subsidy loan amount?

It generally takes around 3 to 4 months for the subsidy loan amount to get disbursed to the bank account of the beneficiary.

2. Can a woman applicant apply for the PMAY housing scheme?

Yes, the PMAY housing scheme gives a special preference top the women applicants for the LIGs (Lower-Income Groups).

3. How can I apply for the PMAY offline?

You can apply for the PMAY housing scheme offline by simply visiting to your nearest Common Service Center (CSC) or any lending institute registered under the PM Awas Yojana.

4. What is the PMAY helpline number?

If you have any scheme related queries you can reach out call these toll-free numbers:

• For Urban, HUDCO – 1800-11-6163
• For Urban, NHB – 1800-11-3388/1800-11-3377
• For Gramin – 1800-11-6446