Providing benefit of pucca houses to all of the residents of the country by 2023, PM Modi started the (PMAY)Pradhan Mantri Awas Yojana in 2015. Under this scheme, which is being implemented as a mission, a poor person in an urban area can get a house constructed in a 30 sq. meter carpet area.
Pradhan Mantri Awas Yojana Urban Overview
Name of the scheme
|Pradhan Mantri Awas Yojana Urban|
|PM Narendra Modi|
|A poor person in an urban area can get a house|
At the same time, under this scheme, people of the low-income groups (LIG) and middle-income groups (MIG) can fulfill the dream of their residence by taking loans at low-interest rates.
The scheme is implemented by way of the State Governments or Union Territory Governments and the Central NOID Company. The biggest feature of the scheme is that the woman of the family is made the owner of the house.
What is Credit Link Subsidy Scheme (CLSS)
CLSS is the only credit link subsidy scheme being run for the middle-income group. This was earlier till 2017 which was increased to March 2020. Then it was increased to March 2021.
Below this scheme, a curiosity subsidy of Rs 2.67 lakh is given to the economically weaker part.
Who will get the benefit of Prime Minister Housing Scheme (PMAY)?
The basic goal of this scheme is to provide housing to all. Therefore, those that already have a home or whose family members have a home, they will not get the benefit. It clearly states that the beneficiary shouldn’t have a pucca house. On this, the family can also be defined. The family consists of spouses and unmarried children.
What is EWS, LIG, and MIG category?
A family with an annual revenue of lower than three lakh rupees falls within the Economically Weaker category (EWS). After this, LIG family with 3 to 6 lakh annual income and family with 6 to 12 lakh annual income falls in MIG-1 category.
A household with an income of 12 to 18 lakhs yearly falls within the MIG-2 category. In MIG-1 and MIG-2 categories, there is a 4 percent curiosity subsidy on loans up to Rs 9 lakh and a three % interest subsidy on loans up to Rs 12 lakh.
How does the PMAY scheme work?
For example, you fall in the MID-2 class and you want to buy a house worth 60 lakh rupees. For this, you pay 20 % i.e. 12 lakh rupees in cash, and take the remaining amount i.e. 48 lacks mortgage.
But under the PM Awas Yojana, you’ll get a 3 % interest subsidy only on a loan of Rs 12 lakh. In this way, regular interest will be charged on the remaining loan amount of Rs 36 lakh.
Will this scheme benefit building a house on an empty plot?
The answer is sure. Below this, the beneficiary will get an interest subsidy. In this scheme, 160 sq. meter carpet area has been kept for the MIG-1 category while 200 sq. meter carpet area has been kept in MID-2
This is how the PMAY plan.
In Credit Linked Subsidy Scheme (CLSS), people of center income group whose annual income is between 6 lakh to 12 lakh rupees, they’ll get 4 % interest subsidy on 20 yr term home loan of 9 lakh rupees.
For instance, the rate of interest on a home loan is 9 %, then you’ll have to pay only 5 % under PMAY. People with an annual income of Rs 12 lakh to Rs 18 lakh will get a 4% interest subsidy
For instance, the rate of curiosity on a home mortgage is 9 %, then you will have to pay solely 5 % under PMAY. These with annual earnings of Rs 12 lakh to Rs 18 lakh will get an interest subsidy of 4 percent.
4 categories under the scheme
Economically Weaker Section (EWS) and Decrease Income Group (LIG) with 3 lakh to 6 lakh annual income, Middle Income Group 1 (MIG1) with 6 lakh to 12 lakh annual income and Middle Income Group 2 (with 12 lakh to 18 lakh annual income). MIG2).
Economically Weaker Part (EWS), Lower Income Group (LIG) will proceed to get the benefit of credit-linked subsidy until 31 March 2023. But Middle Income Group 1 (MIG1) and Middle Income Group 2 (MIG2) got this profit only by applying till 31 March 2020. However, there’s a demand for extending the subsidy profit to each these teams by 31 March 2023.
When you also must take advantage of cheap homes under the scheme and you wish to apply after the lockdown then you must have these documents
For salaried class
- It’s necessary to have a PAN card.
- Apart from this, any Voter ID, Aadhar Card, Passport, Driving License, or Government ID proof.
- Address proof
- Voter card, Aadhar card, Passport, Life insurance coverage policy, residence address certificates, lease agreement on stamp paper, bank, passbook, income proof, final 6 months bank statement, ITR receipt last 2 months salary slip
- It’s necessary to have a PAN card.
- Apart from this, Voter ID, Aadhar Card, Passport, Driving License, and any government ID
- Voter Card
- Aadhar Card
- Copy of utility bill which can contain phone bill, fuel invoice, electricity bill.
- Last three months’ bank statements from Commercial Nationalized Bank
- Address on saving account in the post office
- life insurance policy
- Residence Address Certificates
- Rent agreement on stamp paper
- The address was written on the bank passbook
Address proof in case of the owner of shop, firm, company….
• store and institution certificates
• trade license certificates
• SSI registration certificates
• pan card gross sales tax/vat certificates
• partnership deeds in case of being agency factor registration certificates
• export-import code certificate income
- ITR of last 2 years
- Balance sheet
- Last 6-month bank statement of current and saving
For property proof
- Property Documents
- Copy of agreement
- Allotment letter
- Payment Receipt
- buyer agreement
PMAY extended time
Housing and Urban Development Secretary Durga Shankar Mishra said that the Credit Linked Subsidy Scheme has been prolonged until 31 March 2020. To achieve the goal of Housing for All by the yr 2023, the government has prolonged the period for availing PMAY.
Where can you benefit from it?
Banks, housing finance firms, regional rural banks, small finance banks, and many institutions are offering benefits of this scheme to customers. National Housing Bank (NHB) and HUDCO (HUDCO) are also included in this scheme.