The Pradhan Mantri Awas Yojana(PMAY) has been the talk of the town since it was introduced by Prime Minister, Narendra Modi on 1 June 2015. PMAY Scheme is an initiative provided by the Government of India which aims at providing affordable housing to the urban poor. The mission of this initiative is to provide housing for all by the year 2022.
Under this scheme, affordable houses will be built in selected cities and towns using eco-friendly construction methods for the benefit of the urban poor population in India. Also, under the Credit Linked Subsidy Scheme, beneficiaries under PM Awas Yojana are eligible for interest subsidy if they avail a loan to purchase or construct a house.
Features of Pradhan Mantri Awas Yojana
- Under PMAY Scheme, subsidy interest rate is provided at 6.5% on housing loan for the term of 15 years to all the beneficiaries.
- Differently abled and senior citizens will be given preference in allocation of ground floors.
- Sustainable and eco-friendly technologies would be used for construction.
- The scheme covers entire urban areas in the country which includes 4041 statutory towns with the first priority given to 500 Class I cities. This will be done in 3 phases.
- The credit linked subsidy aspect of the PM Awas Yojana gets implemented in India in all statutory towns from the initial stages itself.
Current Updates on Pradhan Mantri Awas Yojana
PMAY may get a 50 percent raise in the Upcoming Budget
The government’s housing for all initiative, known as Pradhan Mantri Awas Yojana (PMAY), is quite likely to get a 50 percent raise in the upcoming budget allocation this year. This surge is driven by the government’s plan to build more than two crore houses in urban and rural areas.
The PMAY scheme is divided into two components – rural and urban. In the first case, the government plans to construct one crore new housing units by the end of March 2019 and of these, 51 lakh houses need to be built by March 2018. The government has set a similar target for PMAY Urban as well.
Considering that the housing scheme is moving at a slow pace, allocating additional funds is likely help it accomplish its goals. In the previous budget, Rs. 23,000 crore was allocated for the PMAY Rural while Rs. 6,042 crore was allocated for its urban counterpart.
To achieve its target of constructing 51 lakh houses in rural India, the Ministry of Rural Development is working together with the government of different states. Month-wise targets have been set up to complete the construction of the houses and so far, the government appears to be on track.
Eligibility Criteria for PMAY Scheme
The government will use the The Socio Economic and Caste Census of 2011 (SECC 2011) to identify and select the list of PMAY beneficiaries. The village panchayats along with tehsils will be considered for consultation of beneficiaries before making the list under the rural housing scheme. This is going to be done in order to ensure transparency of the project and also make sure that only the deserving receive the aid in housing.
- Any household with total annual income between Rs.6 lakh to Rs18 lakh can apply for the PM Awas Yojana. The applicant is allowed to include the income of the spouse while applying for this scheme.
- Indian citizens who are women may apply. No other demographic will be considered as long as they are women.
- The beneficiary can only buy a new house in order to enjoy Pradhan Mantri Awas Yojana benefits. People who already own a house are not eligible to apply for this scheme. No pucca should be owned by the beneficiary or member of the family, in any part of the country.
- People will be allowed to buy/construct new houses only. One cannot avail PMAY benefits on already built house.
- People who belong to the low income group i.e. LIG and economically weaker sections also known as EWG in the society, may also apply.
- Scheduled tribes and castes will also be eligible.
- Senior citizens and differently abled will be given special priorities for ground floor housing.
How to Apply for the PM Awas Yojana Online
- Visit the PM Awas Yojana official website http://pmaymis.gov.in/
- Under the “Menu” section, find the “Citizen Assessment” option
- Enter your 12-digit Aadhaar card number
- Once you have entered your Aadhar information, you will be redirected to the application page
- You will be asked to enter your personal details, income details, current residential address, and your bank account details
- Enter all information in the application
- Click on “I am aware of” option at the end of the page and click the “Save” button
- Once you click the “save” option, you will see a system generated application number which you can save for future reference
- Download and print the duly-filed application
- Submit the form at your nearest CSC office centres and financial institution/banks along with the required documents
Before you fill the PMAY Scheme application, make sure that you have checked your eligibility and your name is listed in the beneficiary list. You can check if you are eligible by submitting your BPL certificates to the lending institution and they will notify you if you are eligible to apply for PM Awas Yojana scheme. Alternatively, you can also check the list of beneficiaries online by visiting the official website. The list of beneficiaries available in the website is periodically updated. Make sure you check the recent list.
The online application process to apply for PMAY Scheme is very simple, convenient, and saves a lot of time. Make sure you have your savings bank account details and your household income details when you are applying for Pradhan Mantri Awas Yojana online.
How to Edit Your Details After Submitting Application for PMAY
- Visit the official website of Pradhan Mantri Awas Yojana
- Enter your application reference number and your Aadhaar details
- Click on the “Edit” option
- You will now be allowed to edit your application details
What PMAY Scheme offers in a Nutshell
|Annual income (Household Income)
|Between Rs.6 lakh to Rs.12 lakh
|Between Rs.12 lakh to Rs.18 lakh
|Subsidy on interest
|Tenure of the loan to qualify for the subsidy
|Loan amount to qualify for the subsidy
|Minimum carpet area(Square metres)
|90 square metres
|110 square metres
|Maximum carpet area(Square feet)
|968.5 square feet
|1,184 square feet
|Discount rate for NPV
How to Get Interest Rate Subsidy under Pradhan Mantri Awas Yojana
- Apply for a home loan from any listed lending institution asking for subsidy.
- The lending institution will review your application and you are eligible, your application will be sent to the Central Nodal Agency.
- Upon verification, if your application is approved and no discrepancies are found, the Central Nodal Agency will disburse the subsidy amount to the lending institution.
- This amount will be credited to your account by the lending institution which will lower your total loan amount.
- You can continue paying the EMIs towards the balance loan amount.
Objectives of PMAY Scheme
Based on recent estimates, as of September 2016, the population of the urban dwellers in India increased at an alarming rate and is expected to see a greater rate of growth in the following years. It is said that by 2050, urban dwelling population will rise to 814 million people. The calculation predicted is almost twice the number that already reside in urban areas. The major challenges also include providing people with housing options that are affordable and other major related concerns such as sanitation along with sustainable development. The Ministry also has to ensure a sustainable and safe environment for the urban population.
- The main objective of the PM Awas Yojana Scheme is housing that is affordable for all by the year 2022.
- It also intends to make it accessible to demographics that are specific such as economically challenged groups, women along people belonging to minorities such as Scheduled Castes and Scheduled Tribes.
- The Government’s other goal is directly in association with some of the most ignored demographics which include widows, lower income group members, transgender and henceforth provide them with sustainable and affordable housing scheme.
- Special preferences for ground floor properties will be given to differently abled and senior citizens if required.
- Registration is mandatory to avail the benefits of this scheme which includes the strict beneficiary names to be mothers or wives.
This scheme launch is intended to target urban areas of the following options to States or Union Territories as well as cities as mention earlier.
Beneficiaries Under the Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana targets specific groups like:
- Scheduled Caste
- Scheduled Tribe
- Economically weaker section of the society
- Low income group population
- Medium income group 1
- Medium income group 2
Three Phases of Pradhan Mantri Awas Yojana
The PMAY Scheme will be executed in three phases. Refer to the below tables for more details:
Home Loan Interest Rate for PMAY Scheme
Home loan interest rate is around 9% at present. So, if 4% interest subsidy on a loan of up to Rs.9 Lakhs is applied, then the E.I.R (Effective Interest Rate) would be 5%, which will benefit the borrowers.
|Rate of Interest
|Economically weaker sections
|Max of Rs.6 lakh
|Lower Income groups
|Max of Rs.6 lakh
|Middle Income Group 1
|Less than Rs.12 lakh
|Middle Income Group 2
|Between Rs.12 lakh and Rs.18 lakh
Pradhan Mantri Awas Yojana EMI Calculator
Pradhan Mantri Awas Yojana scheme aims to simplify the process of purchasing a home for the urban poor and weaker sections of society through EMIs at reasonable rates of interest. The rate of interest is comparatively much lesser than commercial rates, thus offering people subsidised loans.
To calculate the EMI log on to the Pradhan Mantri Awas Yojana website and fill in the following details: http://pmaymis.gov.in/EMI_Calculator.aspx
- The total loan amount in rupees
- The rate of interest
- The total loan period in months
Once the following details are submitted, click on the ‘Calculate’ option. This will give you the monthly installment or EMI payable in rupees.
PMAY Functions of Technology Sub-Mission:
PM Awas Yojana Technology Sub Mission will cover following:
- Better Habitat Designing & Planning of the Buildings
- Planning to Develop Environment Friendly Houses
- Best Construction Practices
- Arranging the Most Innovative Technologies
- Picking the Most Suitable Materials
How Does PM Awas Yojana Work Through the Borrower’s Bank:
The bank from where the individual is taking the loan will claim the subsidy benefit for the eligible applicants from the National Housing Bank (NHB). The National Housing Bank will then check to investigate whether anyone is making multiple applications under the scheme. Once confirmed, the CLSS or subsidy amount will be given to the borrower’s Bank. Once the amount is received, the money would be credited directly to the Loan Account.
Toll Free Helpline Number for PMAY Scheme
In case of any queries relating to the application process, interest rates and any other scheme related queries, customers can contact the toll free helpline number:
- 1800-11-6163 (Urban, HUDCO)
- 1800-11-3388 (Urban,NHB)
- 1800-11-3377 (Urban,NHB)
- 1800-11-6446 (Gramin)
Those facing any issues related to the application process can contact the above toll free numbers according to the locations.
Pradhan Mantri Awas Yojana Loan Amount Doubled – 2017
On 2nd January, 2017, Narendra Modi, the Prime Minister of India, doubled the loan amount under Pradhan Mantri Awas Yojana that is eligible for interest subsidy for urban areas.
The government will now provide the following under this scheme:
- Loans of up to Rs.12 lakhs with up to 4% interest subvention.
- If people borrow up to Rs.2 Lakhs for the purpose of purchasing a new home or for housing extension in rural areas, then they will get 3% interest subvention.
- If people borrow loan of up to Rs.9 Lakhs in 2017, they will get 4% interest subvention.
- If people borrow loan of up to Rs.12 Lakhs in 2017, they will get 3% interest subvention.
Apart from the above, the government will create 2 new middle income categories in urban areas under Pradhan Mantri Awas Yojana.
|Andaman and Nicobar
|D and N Haveli
|Daman & Diu
|Jammu & kashmir
List of Banks and Housing Finance Ltd for Home Loan Under PMAY Scheme
|IKF Housing Finance Private Limited
|Manipal Housing Finance Syndicate Ltd.
|Ummeed Housing Finance Private Limited
|Mamata Housing Finance Company Pvt. Ltd.
|West End Housing Finance Limited
|Mahindra Rural Housing Finance Ltd.
|Viva Home Finance Ltd.
|Magma Housing Finance
|Vastu Housing Finance Corporation Ltd
|LIC Housing Finance Ltd.
|USB Housing Finance Corporation Ltd
|L&T Housing Finance Ltd.
|Tata Capital Housing Finance Ltd.
|Khush Housing Finance Ltd.
|Swarna Pragati Housing Microfinance Private Limited
|India Shelter Finance Corporation Ltd.
|Swagat Housing Finance Company Ltd.
|India Infoline Housing Finance Ltd.
|Supreme Housing Finance Limited
|India Home Loan Ltd.
|Sundaram BNP Paribas Home Finance Ltd.
|India Bulls Housing Finance Ltd.
|SRG Housing Finance Ltd.
|ICICI Home Finance Company Ltd.
|Shubham Housing Development Finance Company Pvt. Ltd.
|Housing Development Finance Corporation Ltd.
|Shriram Housing Finance Ltd.
|Housing and Development Corporation Limited
|SEWA Grih Rin Ltd.
|Home First Finance Company Ltd.
|Saral Home Finance Ltd.
|Hinduja Housing Finance Limited
|Sahara Housing Finance Corporation Ltd
|HBN Housing Finance Ltd.
|Repco Home Finance Ltd.
|Habitat Microbuild India Housing Finance Company Pvt. Ltd.
|Religare Housing Development Finance Corporation Ltd.
|GRUH Finance Ltd.
|Reliance Home Finance Ltd.
|GIC Housing Finance Ltd
|RAAS Housing Finance (India) Ltd.
|Fullerton Home Finance Company Ltd
|PNB Housing Finance Ltd.
|Fast Track Housing Finance Company Ltd.
|Panthoibi Housing Finance Company Ltd.
|Equitas Housing Finance Pvt. Ltd.
|Orange City Housing Finance Ltd.
|Edelweiss Housing Finance Pvt. Ltd
|North East Region Housing Finance Ltd.
|DMI Housing Finance Pvt. Ltd.
|Nivera Home Finance Ltd
|DHFL Vyasa Housing Finance Ltd
|New Habitat Housing Finance and Development Ltd.
|Dewan Housing Finance Corporation Ltd.
|National Trust Housing Finance Ltd.
|Cent Bank Home Finance Ltd.
|Muthoot Housing Finance Company Ltd.
|Capri Global Housing Finance Private Limited
|Muthoot Homefin Ltd.
|Capital First Home Finance Ltd.
|Micro Housing Finance Corporation Ltd
|Can Fin Homes Ltd.
|Mentor Home Loans India Ltd.
|AU Housing Finance Ltd.
|MAS Rural Housing and Mortgage Finance Ltd.
|Aspire Home Finance Corporation Ltd.
|Manappuram Home Finance Pvt. Ltd.
|Aptus Value Finance Corporation Ltd.
|Aditya Birla Housing Finance Ltd.
|Aptus Value Housing Finance India Ltd.
|Aadhar Housing Finance Ltd.
|Akme Star Housing Finance Ltd.
List of Banks Under PM Awas Yojana Scheme
|Public Sector Banks
|Private Sector Banks
|Regional Rural Banks
|South Indian Bank Ltd.
|Ellaquai Dehati bank
|Janta Sahakari Bank Ltd
|Central Bank of India
|Nainital Bank Ltd.
|The Punjab State Cooperative Bank Ltd.
|State Bank of Patiala
|Lakshmi Vilas Bank
|Vanachal Gramin Bank
|Uttarakhand State Cooperative Bank Ltd.
|United Bank of India
|J & K Bank
|Uttarbanag Kshetriya Gramin Bank
|Shree Panchganag Nagari Sahakari Bank Ltd.
|Dhanlaxmi Bank Ltd
|Telangana Grameena Bank
|Kerala State Co-Operative Bank Ltd.
|City Union Bank
|Satlij Gramin Bank
|Karad Urban Co-operative Bank Ltd.
|State Bank of Travancore
|Sarva UP Gramin Bank
|Meghalaya Co-Operative Apex Bank Ltd
|State Bank of Mysore
|The Federal Bank Ltd.
|Rajasthan Marudhara Gramin Bank
|Sangli Urban Co-Operative Bank Ltd.
|State Bank of Hyderabad
|Karur Vysya Bank Ltd.
|Meghalaya Rural Bank
|The Surat People’s Cooperative Bank Ltd.
|State Bank of Bikaner & Jaipur
|Karnataka Bank Ltd.
|Jharkhand Gramin Bank
|The Goa State Co-Operative Bank Ltd.
|Punjab National Bank
|ICICI bank Ltd.
|J& K Grameen Bank
|Sikkim State Co-Operative Bank Ltd.
|Punjab & Sind Bank
|DCB Bank Ltd.
|Bihar Gramin Bank
|Shikshak Sahakari Bank Ltd.
|Axis bank Ltd.
|Baroda Rajasthan Kshetriya Gramin Bank
|Sardar Bhiladwala Pardi People’s Co-Operative Bank Ltd.
|Catholic Syrian Bank
|Bangiya Gramin Vikas Bank
|Odisha State Cooperative Bank
|Tamilnad mercantile Bank Ltd
|Chaitanya Godavari Grameena Bank
|Nutan Nagarik Sahakari Bank Ltd.
|Central Godavari Grameena Bank
|Mizoram Cooperative Apex Bank Ltd.
|Bhartiya Mahila Bank Ltd.
|Sarva Haryana Gramin Bank
|Mehsana Urban Co-Operative Bank Ltd.
|Bank of Maharashtra
|Kaveri Grameena Bank
|Mahanagar Co-Operative Bank Ltd.
|Bank of India
|Dena Gujarat Gramin Bank
|Kalupur Commercial Co-operative Bank Ltd.
|Bank of Baroda
|Baroda Gujrat Gramin bank
|Jharkhand State Co-Operative Bank Ltd.
|Assam Gramin Bank
|J&K State Cooperative Bank
|Arunachal Pradesh Rural Bank
|Cosmos Co-operative Urban Bank Ltd.
|Oriental bank of Commerce
|Andhra Pradesh Grameena Vikas Bank
|Cosmos Co-operative Urban Bank Ltd.
|Indian Overseas Bank
|Allahabad UP Gramin Bank
|Chhattisgarh Rajya Sahakari Bank Maryadit
|Punjab GRamin Bank
|Bihar State Co-operative Bank Ltd.
|Baroda Uttar Pradesh Gramin Bank
|Jalgaon Janata Sahakari Bank Ltd.
|Gramin Bank of Aryavart
|Sarvodaya Commercial Co- operative Bank
|Citizen Credit Co-op Bank Limited
|Uttar Bihar Gramin Bank
|The Nawangar Co-operative Bank Ltd.
|Pandyan Grama Bank
|The Greater Bombay Co- operative Bank Ltd.
|Kashi Gomti Samyut Bank
|The Bharat Co-operative Bank (Mumbai) Ltd.
|Odisha Gramiya Bank
|The West Bengal State Co- operative Bank Ltd.
|Madhyanchal Gramin Bank
|The Kalyan Janata Sahakari Bank Ltd.
|Tripura Gramin Bank
|The Gujarat State Co-operative Bank Ltd
|Chhattisgarh Rajya Gramin Bank
|The Ahmedabad Mercantile Co- operative Bank Ltd.
|Utal Grameen Bank
|Shri Mahila Sewa Sahakari Bank Ltd.
|Saurashtra Gramin Bank
|Rajkot Nagarik Sahakari Bank Limited
|Pragathi Krishna Gramin Bank
|Punjab & Maharashtra Co- operative Bank Ltd
|Narmada Jhabua Gramin
|Prime Co-operative Bank Ltd.
|Nagaland Rural Bank
|Bombay Mercantile Co-operative Bank
|Mizoram Rural Bank
|Manipur Rural Bank
|Maharashtra Gramin Bank
|Madhya Bihar Gramin Bank
|Langpi Dehangi Rural Bank
|Kerala Gramin Bank
|Karnataka Vikas Grameena Bank
FAQs on Pradhan Mantri Awas Yojana
You still may have some questions, regarding some terms that you may not be familiar with or some queries that you may have about. Here are some of these most commonly asked questions about PMAY and PMAY Gramin:
- If I am a woman can I apply for this scheme?Yes, this scheme gives priority to women who are running a family within the lower income groups. However, if your husband, father or any other family member that you reside with has applied, your application will be rejected.
- I am a senior citizen and fall under the local income groups? While the PMAY scheme seems financially viable, as an elderly person I would prefer a housing in the Ground Floor. What should I do?You simply need to apply as a senior citizen, since all senior citizens are provided the priority for having access to Ground floor housing. However, ensure that you apply early since the priorities among senior citizens for ground floor is also shared with differently abled beneficiaries as well.
- What does one mean by DBT?People refer to Direct Benefit Transfer as DBT. This means that the beneficiaries will receive the funds they are expected to receive, in the form of installments, under the scheme, directly in their bank accounts, instead of having to go through random offices and banks. The funds allocated for the rural housing scheme under PMAY will also be sent off to the beneficiaries through direct fund transfer to the bank accounts of the listed and identified beneficiaries. Labour allocation and labour training for the Awas Yojana
- Why will the Government geotag the properties under the PMAY housing project?The importance of transparency in the whole housing project is essential, right from the scheme rules and regulations being created to the basic requirement of sanitation being implemented in the housing. All of that must be followed, which requires geo tagging, to have all information available for parties involved, whenever needed. Geo tagging, basically means adding metadata to a photograph or map of your home located in the map. It also helps retain updated satellite imagery of the progress of the project. This helps to remotely monitor each unit, without having to be there in person.
- How long will the PMAY project last?The PMAY project is supposed to last until 2022. But, this is the date, which ensures that all the regions in India have beneficiaries, who can avail the scheme. The construction and ultimately the beneficiaries moving in may take longer.
- How Do I Find out whether my town or city is part of the first phase?Simply go online, and check for the list of cities in the the first Phase of the PLAY project.
- Transgenders are also a part of the Indian society. As a transgender can I apply?Transgenders often belong to low income groups and economically challenged groups. As long as they also cover all the other eligibility requirements, such as documentation or a single applicant from a family, this demographic will not be ignored by this scheme. However if you are not in the income groups required by the schemes, you will not be eligible for the scheme.
- What is the maximum annual income should I have to be eligible for PMAY?Your annual income should not be more than Rs. 6 lakhs. However, there are no lower limits for the PMAY income requirement.
- Why would sustainable and eco-friendly technologies be used for construction in the housing projects under the PMAY? Are they not making it more expensive that way?Eco-friendly projects do not mean that the PMAY constructions will make the ultimate housing price expensive. It only means that it will ensure that the environment is not harmed in anyway. It is essential to ensure that people in the future and that too in the near future do not perish due to environmental hazards, considering that global warming is a real phenomenon and is hitting our country, more than we realize.
- What is a Central Nodal Agency when we are talking about PMAY?These are basically nodal agencies that are identified by the Ministry or Government to function as bodies which implement Credit linked subsidy.
- What does one mean, by carpet area in lieu with Pradhan Mantri Awas Yojana?Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls
- How does the housing project ensure that there is enough labour for construction for the housing under the PMAY in rural regions?The Mahatma Gandhi National Rural Employment Guarantee Act enables the Government to hire enough labour for construction of homes under PMAY in the rural regions. The beneficiaries under the P M Awas Yojana will have access to unskilled labour for 90 days through MGNREGA. Already 30,000 masons have been trained for the purpose as of September 2016.
- What is FAR when it comes to PMAY?Let us take a look at the equation to quickly understand what FAR means:
- Floor Area Ratio = Total covered area on all the floors x 100 divided by Plot area.
- However, some cities or towns may have varied definitions. The definitions that have been promoted by the region will be considered under such conditions to remove any sort of confusion.
- What is Implementing Agencies and how are they different from Central Nodal Agencies (CNA)?These agencies comprise of any Urban Local Bodies, Housing Boards, Development Authorities, etc., unlike nodal agencies that have been picked by State Government or SLSMC for the purpose of implementing Housing for PMAY missions.
- What is TDR or Transfer of Development Rights?This term simply ensures the availability of a particular amount that is additional on the built up with respect to the surrendered or relinquished area of land which allows the owner to use an added built up area for himself/herself in some other land.
- Who is the scheme for?Anyone who belongs to the economically weaker section of the society and does not own a ‘pucca’ house
- Who is a beneficiary family?The individuals availing the benefit under the scheme are referred to as the beneficiary family
- Is the scheme for non-resident Indians?Yes
- Are there any further subsidies/discounts provided on this scheme?No
- What is the term of the loan?20 years to avail subsidy. If extended, subsidized rates will not be applicable
- Is it a must for a woman to own the property?Yes, it is so for lower income groups and economically weaker sections of society
- Can this be availed in rural areas?No. The scope of the scheme is limited to urban areas.
GST Rate of 18% Applicable for All Financial Services Effective July 1, 2017.