About PMAY Scheme
Own a home and save up to Rs. 2.67 Lakhs
Pradhan Mantri Awas Yojana
In the year 2014, the Pradhan Mantri Awas Yojana was introduced by our Hon’ble Prime Minister Shri Narendra Modi in the Joint Session of Parliament. This scheme aims to fulfil the housing needs of everyone by providing affordable and sustainable houses by 2022, on the occasion of the 75th year of independence. This scheme is especially aimed at benefiting the Economically Weaker Section (EWS), Lower Income Group (LIG) and the Middle Income Group (MIG) of society, wherein they can avail the interest subsidy of up to Rs. 2.67 Lakhs.
Any family consisting of a husband, wife and unmarried children is eligible to apply for a home under this scheme, considering they don’t own any pucca house in the name of any family member in any part of India. In line with this scheme, Swarna Griha, an initiative by Felicity Adobe LLP, has been constructing well designed and affordable houses in Tumakuru and nearby areas of Karnataka. These houses are available at a subsidised rate of interest, which can be availed from the PMAY listed banks and financial institutions.
Own a home and save up to Rs. 2.67 Lakhs
A family comprising of a husband, wife and unmarried children. Such a beneficiary should not own a pucca house in the name of any member of his / her family in any part of India
Houses made with high quality materials throughout, including the floor, roof and exterior walls, are called pucca houses. Houses made from mud, thatch, or other low-quality materials are called katcha houses.
The EWS/LIG categories are defined as follows:
For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant will submit a self-certificate/affidavit as proof of income.
A house is defined as an all-weather single unit or a unit in a multi-storeyed super structure having carpet area of up to 30 sqm for EWS category, up to 60 sqm. for LIG category, up to 120 sqm. for MIG-1 category and up to 150 sqm. for MIG-2 category, with adequate basic civic services and infrastructure services like toilet, water, electricity, etc.
Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls.
Yes, he can be covered under subsidy for beneficiary-led individual house construction scheme, if otherwise eligible.
Under Credit Linked Subsidy, beneficiaries can seek housing loans from Banks, Housing Finance Companies, and other such institutions for new construction and enhancement to existing dwellings as incremental housing. The credit linked subsidy will be available only for loan amounts specified for each category and such loans would be eligible for an interest subsidy at the specified rate for tenure of 15 years or during tenure of loan, whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. Any additional loans beyond the specified Loan Amount will be at a non-subsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions, resulting in a reduced effective housing loan and Equated Monthly Instalment (EMI).
Primary Lending Institutions are Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks or any other institution, as may be identified by the MoHUPA.
In an example where 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.
The carpet area of houses being constructed under this component should be up to 30 sqm for EWS category and up to 60 sqm for LIG category, up to 120 sqm for MIG-1 and up to 150 sqm for MIG-2. This means that if the carpet area exceeds the respective limits, then the beneficiaries would not be eligible to avail of the benefit under this component.
The subsidy would be disbursed to the beneficiaries 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.
In such cases, the subsidy is to be recovered and refunded to the Central Government.
EWS and LIG could be grouped together at one plot, but it will be eligible for central assistance only if at least 35% in the project are for EWS category and the single project has at least 250 houses.
No. Under the mission, a beneficiary can avail of benefit of one component only.
No, household cannot take the benefit under CLSS as spouse if beneficiary family/household already owns one property
In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.