Recently, Pradhan Mantri Awas Yojana (PMAY) has been updated for the year 2017 for Economically Weaker Section (EWS) and Lower Income Group (LIG). The housing loan has been extended to 20 years instead of 15 years.
Credit linked Subsidy scheme under Pradhan Mantri Awas Yojana (PMAY) has been introduced in 2015 in order to diversify the institutional credit flow to the housing needs of the urban poor. Economically Weaker Section (EWS) and Lower Income Group (LIG) are the eligible sections to avail the Credit Linked Subsidy for the purpose of acquisition and construction of the houses.
CLSS (Credit Linked Subsidy Scheme) for EWS (Economically Weaker Section) / LIG (Lower Income Group)
Illustrative Example Loan tenure -20* years/240 months
All figures in Indian Rupees
|Loan Amount||Loan Amount eligible for Subsidy||Interest Subsidy||Balance Loan||Initial EMI @10%||Reduced EMI after crediting the Subsidy||Monthly savings||Annual savings|
|(1 – 3)||(5 – 6)||(7) / 12|
Above figures are indicative and may vary from case to case basis.
*Came into effect from 1st January 2017.
How to Apply
Interested beneficiaries for CLSS LIG / EWS can apply directly to PLIs (Primary Lending Institutions) and after the verification, PLIs will sanction loans and thereafter claim the subsidy from CNAs (Central Nodal Agencies).
There are no processing fees for CLSS by PLIs for the applicants under CLSS. So, one can focus on the EMIs and enjoy this benefit.
Prime Minister Narendra Modi’s vision was to provide houses to underprivileged families by the time India completes its 75th year of independence. And this vision has culminated into Pradhan Mantri Awas Yojana. A timely manifestation of the project will actually help India to expand its organized housing in the country.
PMAY Home Loan for EWS / LIG Subsidy
- Maximum loan amount – As per the eligibility of the customer
- Maximum loan tenure – As per the guidelines of the Primary Lending Institutions (PLI)
- Maximum loan amount for subsidy calculation – Rs. 6 lakh
- Maximum rate for subsidy – 6.5 %
Eligibility Criteria for CLSS for EWS / LIG
- The beneficiary family should comprise of husband, wife and unmarried children.
- The beneficiary family should not own a pucca house in any part of the country
- The annual income of the Economically Weaker Section (EWS) should be up to Rs. 3,00,000.
- The annual income of the Lower Income Group (LIG) should be between Rs. 3, 00,000 to Rs. 6, 00,000.
- Under the scheme, priority will be given to women (especially widow), scheduled caste, scheduled tribe and other backward classes, minorities, differently abled and transgender.
Features of Credit Linked Subsidy Scheme
- Beneficiaries of Economically Weaker Section (EWS) or Low Income Group (LIG) will be eligible for an interest subsidy of at the rate of 6.5% for a tenure of 20 years which has been updated by the Government.
- Subsidized loan amount under Credit Linked subsidy scheme will be up to Rs, 6 lakh, additional loan beyond that will be considered as non – subsidized loan amount.
- A loan will be credited to the beneficiary for the purpose of new construction and addition of rooms kitchen, toilet etc. as incremental housing.
- At present, the carpet area of MIG I is 90 sq m i.e. 968.752 sq ft which will be increased to 120 sq m i.e. 1291.668 sq ft. And for MIG II category the carpet area would be 150 sq m i.e. 1614.585 sq ft instead of 110 sq mt 1184.03 sq ft. And these changes will be implemented from January 1st
- Also under the MIG I category, a four per cent interest subsidy will granted to the beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh, on a loan of up to Rs. 9 lakh.
- And for MIG II category, the beneficiaries with an annual income of Rs. 12 lakh to Rs.18 lakh get an interest subsidy of three per cent on a loan of up to Rs. 12 lakh.
- The carpet area under this mission should be up to 30 square meters and 60 square meters for EWS and LIG.
- The beneficiary can build a house in a larger area as well, but the loan will be limited to Rs. 6 lakh only.
- Central Nodal Agencies (CNA) has been identified by Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) to channelize the lending institutions and for monitoring the progress of the component.
- Primary Lending Institutions (PLIs) can register only with one CNA by signing (Memorandum of Understanding – agreement between two parties) MOU.
- CNAs (Central Nodal Agencies) will provide periodic monitoring inputs to the Ministry of Housing and Urban Poverty Alleviation through regular monthly and quarterly reports.
- State Level Nodal Agencies (SLNA) will facilitate the beneficiaries by doing the paper works, documentations or in getting approvals.
- Beneficiary’s identification should be linked to Aadhaar, voter ID or any other identification in order to avoid duplicity.
- Also, the beneficiaries are required to submit self – certificate / affidavit as proof of income.
- Under the scheme, priorities will be given to Manual Scavengers, Women (special preference given to the widows), Scheduled Caste, Scheduled Tribe and other backward classes, Minorities, Persons with disabilities and Transgender.
|Annual household income limit||₹3,00,000/-||Between ₹3,00,001/- to ₹6,00,000/-|
|House size or the maximum carpet area||30 square meter||60 square meter|
|Loan limit for interest subsidy||₹6,00,000/-||₹6,00,000/-|
|Period of subsidy||20 years or loan tenure whichever is less
|20 years or loan tenure whichever is less|
|Maximum amount of subsidy||₹2,20,000/-||₹2,20,000/-|
Highlights of Credit Linked Subsidy Scheme under PMAY
- The subsidized loan amount under Credit Linked Subsidy Scheme is up to Rs. 6 lakh. Additional loan beyond Rs. 6 lakh will be considered at non – subsidized rate.
- In order to get reduced effective housing loan and Equated Housing Monthly Instalments (EMI) the subsidized interest will be credited to the beneficiaries loan account through Primary Lending Institutions (PLI).
Refer to the link below to know the Primary Lending Institutions (PIL) under PMAY http://www.pmawasyojana.in/2016/06/list-of-primary-lending-institutions.html
- The Net Present Value (NPV) will be of the interest subsidy will be calculated at a discount rate of 9%.
- The registration of the houses should be in the name of the female head of the household or in the name of the joint name of the male head of the family and his wife. In case of no adult female member in the family, the house can be in the name of the male member of the family.
Government is planning to increase the coverage of subsidy scheme for first time home buyers under Pradhan Mantri Awas Yojana (PMAY) in urban areas. According to sources, the guidelines will be redesigned in order to bring properties fall under any part of all development authorities including villages, industrial belts, and even special development authorities to be eligible for interest subsidies.
As per the guidelines, coastal cities which are under port development authorities will also be covered. However, the interest subsidy is available only for buying the first houses in urban areas. According to sources, these changes are done following reports of the banks not approving loan applications under interest subsidy scheme in certain areas in urban localities.
Despite the fact that the housing ministry had reconstructed the guidelines to extend the interest subsidy scheme to more houses falling under area notified by development authorities such as Noida or Greater Noida, the problem still persist.
Under Pradhan Mantri Awas Yojana (PMAY), any household with total annual income of Rs. 6 lakh to Rs. 18 lakh can apply for the scheme. The applicants are also allowed to include the income of the spouse at the time of applying for this scheme. It is also important to note that under PMAY, beneficiaries are allowed to purchase only a new house. People who already own a house are not eligible to apply for this scheme.
Pradhan Mantri Awas Yojana is a Government initiative with the aim of “Housing for All 2022”, launched on 25th June 2015 by the Honourable Prime Minister Shri Narendra Modi. PMAY is an effort to provide homes to the needy.
To know more about Pradhan Mantri Awas Yojana, read https://rupeenomics.com/pmay-pradhan-mantri-awas-yojana/
Government of Rajasthan has set a target to build 4.31 lakh houses by 2016 – 17 under the Pradhan Mantri Awas Yojana Gramin (PMAY – G). To begin with the procedure, government has directed the districts to complete the beneficiary identification and registration work within the given time frame.
The beneficiary list for the scheme is being prepaid based on SECC – 2011 data. If an interested candidate find themselves fitting in the eligibility criteria, can contact the respective Gram Panchayat / Panchayat Samiti or E – Mitra Center.
Also the beneficiaries for the PMAY – G scheme are required to share the following documents to avail the scheme:
- Savings Bank Account Number opened under Jan Dhan Yojana or Bhamashah Yojana
- Bhamshah Card Number / Aadhaar Card Number
- Mobile Number
- Photo of the head of the family
- Registration documents of the plot where house is to be built
Financial Assistance under PMAY – G in Rajasthan
The eligible beneficiaries will be provided with Rs. 1, 48,290 out of which Rs. 1. 20 Lakh would be provided in three installments of Rs. 30 thousand Rs. 60 thousand and Rs. 30 thousand.
The beneficiaries will also receive Rs. 12,000 to build toilets under the Swachh Bharat Mission. And rest Rs. 16,290 would be provided as 90 day labour fee under the MGNREGA.
The beneficiaries can also apply for a loan of up to Rs. 7,000 as per their choice. PM Narendra Modi has also announced 3% subvention (grant of money) on interest rate for loan up to Rs. 2 lakh taken in 2017 for the new construction or extension of housing in rural areas.
District Wise List of Houses under PMAY – G
|Name of District||Targeted No. of Houses||Registered Beneficiaries|
Receive Installment using Awaas App
Government also offers app service where the beneficiaries can download Awaas App on their smart phones to receive installments. The beneficiaries are also required to share the details and construction status of the house along with photographs in order to receive the installments amount.
Download the Awaas App from here.
For more details of Pradhan Mantri Awas Yojana – Gramin, Rajasthan, you can refer to this link http://www.rdprd.gov.in/PDF/PMAY%20Book_curve.pdf
The Union Cabinet has approved increase in carpet area houses eligible for interest subsidy scheme (CLSS) for the Middle Income Group (MIG) under Pradhan Mantri Awas Yojana Urban (PMAY – U).
The carpet area of the house has been kept different for all the category by the government and it’s the carpet area and not the super area that is to be looked at.
At present, the carpet area of MIG I is 90 sq m i.e. 968.752 sq ft which will be increased to 120 sq m i.e. 1291.668 sq ft. And for MIG II category the carpet area would be 150 sq m i.e. 1614.585 sq ft instead of 110 sq mt 1184.03 sq ft. And these changes will be implemented from January 1st 2017.
Also under the MIG I category, a four per cent interest subsidy will granted to the beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh, on a loan of up to Rs. 9 lakh.
And for MIG II category, the beneficiaries with an annual income of Rs. 12 lakh to Rs.18 lakh get an interest subsidy of three per cent on a loan of up to Rs. 12 lakh.
Carpet area is the area enclosed within the walls, which does not incorporate the thickness of the inner walls. It becomes built – up area once you include outer walls, balcony, and other common areas. Further, inclusion of space for lobbies, stairs, elevators, becomes a super – built area.
Earlier, the Centre had extended the timeline for availing interest subsidy of around Rs 2.6 lakh on home loans under the Pradhan Mantri Awas Yojana (Urban) by the middle income groups (MIG) up to March 2019.
|Particulars||MIG I||MIG II|
|Household Annual Income (Rs.)||6 – 12 lakh||12 – 18 lakh|
|Eligible loan amount for interest subsidy (Rs.)||9 lakh||12 lakh|
|Dwelling Unit Carpet Area||120 sq m||150 sq m|
|Max loan tenure (in years)||20||20|
|NPV subsidy||Rs. 2.35lakh||Rs. 2.30 lakh|
Pradhan Mantri Awas Yojana is a Government initiative with the aim of “Housing for All 2022”, launched on 25th June 2015 by the Honourable Prime Minister Shri Narendra Modi. And this scheme is an effort to provide homes to the needy.
To know more about the Pradhan mantra Awas Yojana visit https://rupeenomics.com/pmay-pradhan-mantri-awas-yojana
Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 by the Prime Minister Narendra Modi with a vision to provide affordable housing to the Economically Weaker Section of the Society, Low Income Group (LIG), and Mid Income Group (MIG).
This scheme seeks to address the housing problem through the following broad programs:
- Slum rehabilitation
- Provision of Credit linked subsidy for the weaker section
- Provision of affordable housing by collaborating with public and private sectors
- Beneficiary – led house construction or enhancement
Anybody belong to above mentioned sections can apply for the scheme by filling an application form which is available at the official website which is: http://pmaymis.gov.in/
This scheme has been adopted by the Uttar Pradesh government who is further offering the scheme to the people of Uttar Pradesh (UP).
Application Status of PMAY (Pradhan Mantri Awas Yojana)
Once applied it is important to keep a track of your application status which you can do from the comfort of your home also, as UP government provides online facility to check the status of your application online.
Procedure to check the status of your application is either you can track the assessment form by clicking on the “By Name, Father’s Name”, and “ID Type” or by clicking on “By Assessment ID”.
- If you click on “By Name, Father’s Name”, it will direct you to page where you will have to provide State Name, City Name, District Name, Father’s Name, Name, ID Type (Aadhaar or Other ID), Mobile Number and submit the form.
- Or You can also select the other option which is “By Assessment ID” and by clicking on this option you will have to fill Assessment ID and Mobile Number and submit the form in order to check the status of your PMAY application.
Also, please note that UP government have extended the last dates for online application to 31st October. And the last date to submit the offline application was 15th October, which is over. Hence, the interested candidates can apply for Pradhan Mantri Awas Yojana (PMAY) only through online procedure.
Some highlights of the scheme
Scheme – Pradhan Mantri Awas Yojana aims to provide affordable housing solutions for economically weaker sections of the society.
Objective – The objective of the scheme is to provide affordable housing for all.
Target group – This scheme is aimed at people who belong to the economically weaker sections of society and low income groups
Subsidy range – Between Rs. 1 lakh and Rs. 2.30 lakh
Interest Rate – 6.5%
- People those who are of 70 years of age or lesser than that are eligible to avail this scheme
- Also people from economically weaker section with less than 3 lakh of income yearly and people from lower income groups with the yearly income between Rs. 3 to Rs. 6 lakh.