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Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana is a government-backed housing scheme that aims to provide affordable housing to the urban and rural poor community of India. Launched in June 2015, the PMAY scheme aims to provide interest subsidy for real estate purchase through home loans. The interest subsidy available to beneficiaries depends on their economic category, and is limited by a maximum cap. Known as the CLSS subsidy, it is also available only up to the maximum loan value set for each category.

Beneficiaries can be identified under four economic categories, i.e., MIG-I, MIG-II, LIG, and EWS for interest subsidy benefit transfer. Meet the minimum eligibility requirements to apply for benefits under the scheme with a registered PLI under CLSS.

PMAY – Features and Benefits

Bajaj Housing Finance Limited is registered as a Primary Lending Institution (PLI) with the Central Nodal Agency (CNA) under the Credit Linked Subsidy Scheme.

The Government of India launched the ‘Housing for All’ mission in 2015, with the aim to help 20 million Indians own a home by 2021. Under this mission, popularly called Pradhan Mantri Awas Yojana, you can get an interest subsidy on your home loan, based on your household income category and other norms.

Pradhan Mantri Awas Yojana Beneficiary

The PMAY beneficiary list comprises families including husband, wife and unmarried children. For the purpose of beneficiary selection, every adult member of a family with an income can be considered a separate household entity irrespective of his/her marital status. Once the application has been made under the scheme, applicants can check their name in the Pradhan Mantri Awas Yojana beneficiary list as per their qualification under the urban or rural scheme and applicable category.

There are 4 categories defined under this scheme. These are: 

1. Economically Weaker Section (EWS)

If you belong to this section, you can get interest subsidy on home loans for:

  • Acquisition of a new house
  • Construction of a new house
  • Construction/extension of rooms, kitchen, toilet, etc.

2. Lower Income Group (LIG)

If you belong to this section, you can get interest subsidy on home loans for:

  • Acquisition of a new house
  • Construction of a new house
  • Construction/extension of rooms, kitchen, toilet, etc. 

3. Middle Income Group I (MIG I)

Families belonging to the MIG I category and get interest subsidy for the following purposes.

  • Purchase of a new house
  • Construction of house
  • Extension of existing house

The Pradhan Mantri Awas scheme subsidy benefits under this category are available for households with annual income between Rs.6 lakh and Rs.12 lakh. With the maximum interest rate subsidy of up to 4%, beneficiaries can claim an interest subsidy capped at Rs.9 lakh with home loan tenure not exceeding 20 years.

4. Middle Income Group II (MIG II)

Under this category, PMAY subsidy is available for the following purposes.

  • New house purchase or construction
  • Extension to existing house

To avail subsidy under this category, the annual income of beneficiaries must be in the range of Rs.12 lakh and Rs.18 lakh, with the tenor for PMAY home loan limited to 20 years. Interest rate on the advance for this category can be subsidised by not more than 3% with maximum subsidy value capped at Rs.12 lakh.

PMAY Scheme Details : Key Parameters

Here are the key parameters* for availing an interest subsidy on your home loan under PMAY, and information on how much subsidy you can avail:

Particulars EWS LIG MIG-I MIG-II
Household income (rupees per annum) 0-3,00,000 3,00,001-6,00,000 6,00,001-12,00,000 12,00,001-18,00,000
Eligible housing loan amount for interest subsidy (in rupees) Up to 6,00,000 Up to 6,00,000 Up to 9,00,000 Up to 12,00,000
Interest subsidy (% per annum) 6.50% 6.50% 4.00% 3.00%
Maximum loan tenor (in years) 20 20 20 20
Maximum carpet area of the dwelling unit 30 sq. m. 60 sq. m. 160 sq. m. 200 sq. m.
Discount rate for net present value (NPV) calculation of interest subsidy (%) 9.00% 9.00% 9.00% 9.00%
Maximum interest subsidy amount (in rupees) 2,67,280 2,67,280 2,35,068 2,30,156
Application of scheme on existing home loans sanctioned on or after 17.06.2015 17.06.2015 01.01.2017 01.01.2017
Applicability of no pucca house Not for renovation/upgradation Not for renovation/upgradation Yes Yes
Ownership/co-ownership of a woman Mandatory for new acquisition, Not mandatory for existing property Mandatory for new acquisition, Not mandatory for existing property Not mandatory Not mandatory
Quality of house/flat construction National Building Code, BIS Codes, NDMA Guidelines to be adopted National Building Code, BIS Codes, NDMA Guidelines to be adopted National Building Code, BIS Codes, NDMA Guidelines to be adopted National Building Code, BIS Codes, NDMA Guidelines to be adopted
Approvals for building design Compulsory Compulsory Compulsory Compulsory
Basic civic infrastructure (water, sanitation, sewage, road, electricity etc.) Compulsory Compulsory Compulsory Compulsory

PMAY - Overview

The Pradhan Mantri Awas Yojana aims to make house purchase affordable for Indians by providing interest subsidy under the Credit Linked Subsidy Scheme alongside other forms of assistance. It operates through its two branches, PMAY Urban and Rural, to reach out to as many individuals as possible who are looking to own a home for the first time.

Benefits under the scheme are extended by identifying households based on their annual income, house ownership status and similar other parameters that deem them suitable for application. Combined with initiatives like environment-friendly house construction and affordable costs, the scheme has attained remarkable success in fulfilling its mission of ‘Housing for All’ by the year 2022.

Benefits under the Pradhan Mantri Yojana are extended to applicants successfully qualifying as beneficiaries and securing their places in the yearly beneficiary list released under this scheme. Applicants must also identify their suitable category before proceeding to apply for a home loan under the scheme for affordable house purchase and convenient repayment.

To better understand what is Pradhan Mantri Awas Yojana and the limitations as well as benefits, it is essential to delve into the enlistments under its Rural and Urban branches.

1. Pradhan Mantri Awas Yojana Urban (PMAY-U)

The Pradhan Mantri Awas Yojana Urban extends interest subsidy benefits in approximately 4,330 locations in the country in coordination with various local development authorities of the selected cities and towns. PMAY-U also aims to cover many more cities and towns in India by the end of March 2022, as aimed under its affordable housing mission.

As per the Ministry of Housing and Urban Affairs, as many as 26.08 lakh homes were completed until July 2019 with the help of interest subsidy. Corresponding to this data, funds up to Rs.51 crore have already been released towards the completion of house purchase or construction at subsidised home loan rates. Applicants eligible for benefits under the scheme can easily apply for subsidy benefits via the Pradhan Mantri Awas Yojana online portal.

2. Pradhan Mantri Awas Yojana Gramin (PMAY-G)

Targeting affordable housing facilities in the underprivileged regions of the country, the Pradhan Mantri Awas Yojana Gramin aims to provide financial assistance to homeless and kutcha house residents to purchase or construct pucca houses. Benefits under the scheme are available to all rural regions of the country excluding those of Chandigarh and Delhi. Residents of rural areas confined to plains and other regions can avail financing for such house purchase or construction with differential limits under PMAYG. Following is a list indicating essential details related to this scheme.

 

Particulars EWS
Maximum financial assistance for plain rural areas Rs.1.2 lakh
Maximum financial assistance for other rural regions, like hilly areas, North Eastern region, IAPs, etc. Rs.1.3 lakh
Centre-State fund sharing ratio for plain regions 60:40
Centre-State fund sharing ratio for hilly regions and North East India 90:10
Beneficiary categories identified under SECC Individuals from SC/ST categories, BPL categories, freed bonded labourers, widows of paramilitary forces or their next of kin, individuals subscribed to a retirement scheme, and ex-servicemen

Components of the PMAY

The Pradhan Mantri Awas Yojana comprises four primary components through which benefits are passed on to selected candidates. They include Credit Linked Subsidy Scheme, Affordable Housing in Partnership, ‘In-Situ’ Slum Redevelopment, and Beneficiary-Led House Construction/Enhancement. Based on the different components, benefits can either be monetary or material assistance-based. For instance, while the CLSS benefits are monetary, ‘In-Situ’ Slum Redevelopment uses land as a resource to provide suitable housing to eligible candidates.

Credit Linked Subsidy Scheme

The Credit Linked Subsidy Scheme extends interest rate subsidy to selected beneficiaries on home loans availed under the PM Awas Yojana. These benefits differ based on the beneficiary category as per the indicated criteria for qualification. Below given is an elaboration on the beneficiary category along with the eligibility requirements and subsidy benefits available under the PMAY CLSS scheme.

  • MIG II: For beneficiary category MIG II, subsidy benefits are available for home loans ranging between Rs.12 lakh and Rs.18 lakh. The maximum interest rate subsidy is 3% and subsidy amount capped at Rs.2,30,156. The carpet area limitation for houses purchased or constructed at 200 sq. m. also defines this category.
  • MIG I: Home loan range available for subsidy benefit of 4% under the MIG I category is Rs.6 lakh to Rs.12 lakh. Also, the maximum subsidy amount extends up to Rs.2,35,068 with a carpet area applicability of 160 sq. m. under the CLSS scheme.
  • LIG: For LIG category, the interest rate subsidy extends to 6.5% with subsidy amount available up to Rs.2,67,280. The home amount under this category ranges between Rs.3 lakh and Rs.6 lakh, whereby the carpet area limitation stands at 60 sq. m.
  • EWS: CLSS also enables home loans within Rs.3 lakh to qualify for an interest rate subsidy of 6.5% with the subsidy amount limited to Rs.2,67,280. The maximum carpet area for this category extends up to 30 sq. m.

Subsidy benefits under the Credit Linked Subsidy Scheme are also limited to home loan tenors extending not more than 20 years.

Pradhan Mantri Awas Yojana for Home Loan

Beneficiaries can conveniently avail a Pradhan Mantri Awas Yojana Home Loan from their selected PLI or Primary Lending Institution registered with a Central Nodal Agency to avail subsidy benefits under CLSS. Available for first-time home owners, the Pradhan Mantri Awas Yojana for home loans ensures affordable housing through subsidised interest rates on sanctioned loans.

A borrower thus needs to pay interest on such a home loan at a much lower cost than other home loan borrowers. Such financing facility also reduces EMIs payable, thus ensuring economic and convenient repayment of a PMAY home loan.

Bajaj Housing Finance Limited is a registered PLI providing Pradhan Mantri Awas Yojana Home Loans at subsidised rates. Such interest rate subsidy is available up to 6.93% for eligible borrowers with subsidy benefits amounting up to Rs.2.67 lakh. Borrowers are eligible for these subsidised home loans even if their parents are existing homeowners. You can easily calculate PMAY loan eligibility by using PMAY loan eligibility calculator

Make sure to fulfil the essential eligibility requirements laid down under the scheme to qualify as a beneficiary for affordable house purchase with a subsidised home loan.

PMAY subsidy scheme for MIG I & II category is not extended by regulatory. Category wise scheme validity is mentioned below:

     1. EWS & LIG category is valid up to 31st March 2022

     2. MIG I & MIG II category was valid up to 31st March 2021

PMAY FAQs

Q. What is PMAY and PMAYG?

Pradhan Mantri Awas Yojana or the PMAY is a subsidy-based housing scheme that aims to provide affordable housing to all urban and rural poor by 2022. It enables first-time home buyers to avail home loans and repay them affordably at subsidised rates. Such interest subsidy differs with the category an individual or household qualifies for under the Credit Linked Subsidy Scheme (CLSS).

The scheme is branched into two primary components that extend housing benefits. They are PMAY-U or Urban and PMAYG or Gramin/Rural. While the former extends subsidy benefits through CLSS, the latter comprises several benefit modules that help the rural poor afford housing through the purchase or construction of pucca houses. Individuals who have applied for benefits under the scheme can easily check their beneficiary candidature through PMAY online list release and avail benefits accordingly. To better understand what is PMAY, make sure to check the CLSS details and benefits under it.

Q. Who is eligible for Pradhan Manti Awas Yojana?

Individuals qualifying the following Pradhan Mantri Awas Yojana eligibility requirements can avail benefits under the scheme.

CLSS categories

  • EWS or Economically Weaker Section: Households where the annual income is limited to Rs.3 lakh.
  • LIG or Lower Income Group: Households where the annual income ranges between Rs.3 lakh and Rs.6 lakh.
  • MIG or Middle Income Group I: Households that earn an annual income between Rs.6 lakh and Rs.12 lakh.
  • MIG II: Households where annual income exceeds Rs.12 lakh but remains limited to Rs,18 lakh.

             - Individuals belonging to SC/ST/OBC categories

             - Women

             - First-time home buyers

The PMAY eligibility criteria also include non-beneficiaries of any other state or Centre-led housing schemes.

Q.How to check your name in PMAY Beneficiary List?

Users can access the PMAY beneficiary list in a few simple steps given below.

Step 1: Visit PMAY’s portal to check the Pradhan Mantri Awas Yojana list of beneficiaries.

Step 2: Navigate to the ‘Search Beneficiary’ option and click on it to continue.

Step 3: Proceed to enter your Aadhaar number or any other personal or regional information required.

Step 4: Next, click on the ‘Show’ option for the PMAY list to display on your screen.

Note that the personal information required in checking the Urban list and the Rural list may differ, and users need to provide a suitable validity to proceed.

Q. Who can avail PMAY subsidy under Credit Linked Subsidy Scheme (CLSS)?

Individuals or households that qualify as any of the categories can avail PMAY subsidy under the Credit Linked Subsidy Scheme.

  • Economically Weaker Section: Applicants with household income not more than Rs.3 lakh and carpet area of house purchased limited to 30 sq. m. Also, the maximum loan amount eligible for subsidy under the CLSS scheme is Rs.6 lakh.
  • Lower Income Group: Households or individuals whose annual income is between Rs.3 lakh and Rs.6 lakh, and the carpet area of house does not exceed 60 sq. m. The maximum loan amount is same as above.
  • Middle Income Group I: With a household income between Rs.6 lakh and Rs.12 lakh and house’s carpet area of 160 sq. m., applicants under this category can avail CLSS subsidy for a maximum loan amount of Rs.9 lakh.
  • Middle Income Group II: Here, the carpet area limit extends up to 200 sq. m., with the applicant’s annual household income not exceeding the range of Rs.12 lakh to Rs.18 lakh. Also, the maximum loan amount eligibility for subsidy here is Rs.12 lakh

Q. What is the documentation required for PMAY?

To successfully apply under the scheme, here is a list of documents required for PMAY subsidy.

  • Identity proof: Provide PAN card mandatorily alongside any other government-approved identity proof like Aadhaar card, Voter ID card, Passport, etc.
  • Address proof: Any one among approved proofs of address such as Voter ID card, Aadhaar card, Passport, ration card, utility bill, etc.
  • Income proof: Salary slip/Form 16 for salaried; financial documents for self-employed, and bank account statement, ITR files for previous years for both.
  • Property documents: Copy of allotment letter, copy of agreement to sell, copy of developer payment receipt, etc.

Alongside these, self-employed applicants also need to submit the following documents for PMAY subsidy.

  • Proof of business’s existence and address
  • MOA, if applicable, etc.

Q. How to apply for PMAY online?

The process to apply for Pradhan Mantri Awas Yojana Gramin online as well as Urban is simple. You can visit the website dedicated to this scheme for this application process and proceed to fill up the available form with correct choices like ‘Citizen Assessment’ and ‘Benefits under Other 3 Components. Make sure to carry your Aadhaar card for successful PMAY online application, both Gramin and Urban. Also, verify the details entered for accuracy to ensure your qualification for subsidy benefits under this scheme.

Once applied, users need to check the released beneficiary list to check if they are selected for subsidy benefits under this scheme or not. Qualification for a subsidised home loan under PMAY for house purchase or construction is possible only for individuals or households selected as beneficiaries under either the Urban or the Gramin list.

Q. How to apply for PMAY Offline?

Individuals can apply for PMAY benefits offline by visiting a nearby CSC or Common Service Centre with the necessary personal and financial details. The offline application requires you to pay a nominal cost of Rs.25 plus GST for successful completion.

Before sending an application for PMAY offline, make sure to keep a hard copy of necessary documents required for hassle-free application. Also ensure accuracy of information provided to improve your chances of selection as a beneficiary under the PMAY list to avail interest subsidy benefits and affordable house purchase. It is, nevertheless, advisable to go for the online procedure to easily apply for Pradhan Mantri Awas Yojana benefits.

Q. Is PMAY scheme available to existing home loan borrowers?

Yes, existing home loan borrowers can also avail benefits under the PMAY scheme provided they fulfil the required criteria. It is thus essential to check your eligibility for subsidy benefits before proceeding to apply.

Existing borrowers must also know that benefits under the PMAY scheme on home loan are limited by a maximum loan amount and a pre-decided tenure of not more than 20 years. The loan amount here can vary depending on the CLSS category one qualifies for when availing the PMAY benefits. Thus, if the total home loan amount availed is Rs.20 lakh for an MIG-II category beneficiary, the interest subsidy benefits would be available for a maximum loan amount of Rs.12 lakh only. Interest on the remaining loan amount of Rs.8 lakh will be chargeable at the pre-decided rate.

Q. What is Credit Linked Subsidy Scheme (CLSS)?

Credit Linked Subsidy Scheme (CLSS) is an essential benefit component of the Pradhan Mantri Awas Yojana that allows beneficiaries to avail interest rate subsidy benefits on home loans for affordable house purchase or construction.

Subsidy benefits under this component are based on the economic category a beneficiary qualifies for and the terms of qualification are defined by the annual income and carpet area of the house purchased. To avail benefits under the subsidy scheme, individuals must not own a pucca house and should also not benefit from any government-sponsored housing scheme.

Q. What are the features of CLSS?

Benefits under this subsidy scheme are typically defined by the following features of CLSS.

  • Economic categories: EWS, LIG, MIG-I, and MIG-II.
  • Interest rate subsidy: 6.5%, 6.5%, 4% and 3% respectively for the categories mentioned above.
  • Maximum subsidy amount available: Rs.2,67,280 for EWS and LIG each, Rs.2,35,068 for MIG-I, and Rs.2,30,156 for MIG-II categories.
  • Maximum home loan tenure eligibility: 20 years.
  • Maximum home loan amount eligibility: Rs.6 lakh for both LIG and EWS, Rs.9 lakh for MIG-I and Rs.12 lakh for MIG-II CLSS category.

Q. Where can I apply for Credit Linked Subsidy Scheme (CLSS)?

As benefits provided through the Credit Linked Subsidy Scheme are among the essential components of the Pradhan Mantri Awas Yojana, users do not need to send a separate application. To apply for CLSS benefits, you can proceed with the PMAY application procedure, which is available both online and offline.

Benefits under CLSS are thus also available only when an applicant is selected as a beneficiary under the Urban or Rural program of this affordable housing scheme.