Pradhan Mantri Awas Yojana (PMAY) – Provide Housing for All

Pradhan Mantri Awas Yojana (Urban) for ensuring housing for all in urban areas was launched on 25th June 2015 providing pucca houses to all eligible beneficiaries by 2022. The Mission provides Central Assistance to implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. PMAY(U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission. A basket of options is adopted to ensure more number of people depending on their income, finance, and availability of land through the following four options. 1. “In-situ” Slum Redevelopment (ISSR) 2. Beneficiary-led individual house construction/enhancements (BLC) 3. Affordable Housing in Partnership (AHP) 4. Credit Linked Subsidy Scheme (CLSS)

1.A beneficiary is defined as a family comprising of husband, wife, and unmarried children. Such a beneficiary should not own a pucca house either in his / her name or in the name of any member of his / her family in any part of India to receive Central Assistance under the Mission. 2, Person having pucca house less than 21 sqm m 3. EWS category of beneficiaries is eligible for Assistance in all four verticals of the Missions whereas LIG/MIG category is eligible under only CLSS component of Mission 4 Adult earning members irrespective of marital status are also eligible

No. Under the Mission, a beneficiary can avail of the benefit of one component only.

The subsidy would be released by the CNAs based on the disbursements made by PLIs to the beneficiaries. Subsidy, so disbursed by the CNA to the PLI, will be credited by the PLI to the borrower’s account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount. E.g., the borrower avails a loan for Rs. 6.00 lakhs and subsidy thereon works out to Rs. 2.20 lakhs, the amount (Rs. 2.20 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 3.80 lakhs) and the borrower would pay EMIs on the reduced amount of Rs. 3.80 lakhs

Interest Subsidy up to 2.67 lakh per house is admissible for Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring/constructing houses. The interest subsidies of 6.5%, 4%, and 3% on loan amount up to Rs. 6 lakh, Rs. 9 lakh, and Rs. 12 lakh are admissible for a house with a carpet area of up to 60, 160, and 200 Sq. Meter for EWS/LIG, MIG I, and MIG II respectively. The benefit for EWS/LIG beneficiaries under CLSS works out to as high as Rs. 6 lakh over a loan period of 20 years.

Under Slum redevelopment, Central Assistance of Rs.1 lakh per house is admissible for all houses built for eligible slum dwellers under the component of In-situ Slum Redevelopment (ISSR) using land as a resource with the participation of private developers. These slum rehabilitation grants can be utilized by States/UTs for any of the slum redevelopment projects. After redevelopment, de-notification of slums by State/UT Government is recommended under the Mission guidelines.

Central Assistance of Rs.1.5 Lakh per EWS house is provided by Government of India in projects where at least 35% of the houses in the projects are for EWS category and a single project has at least 250 houses.