Buying a home is a dream that many see, but not all are able to fulfil this dream in their lifetime. A home is the most expensive investment you make in your entire lifespan, if rightly planned it can also be one of the best investment decisions. A house is an asset whose value appreciates over time, creating wealth. Home also provides a sense of security and economic wellbeing. Thus, the Government of India has come up with an initiative to help each one fulfil their dream of home through Pradhan Mantri Awas Yojana (PMAY).
1. What is Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana is an initiative of the Government of India which is aimed at providing affordable housing for all in urban areas by 2022. Under this scheme, the Government assists all the financial intermediaries to provide a home to all the eligible beneficiaries/families. There are four main options provided under the PMAY scheme, categorised based on the income level of an individual, their financial eligibility, and obtainability of the land.
1. Credit Linked Subsidy Scheme (CLSS)
2. Affordable Housing in Partnership (AHP)
3. “In-Setu” Slum Redevelopment (ISSR)
4. Beneficiary-Led individual House Construction/enhancements (BLC)
2. What is Credit Linked Subsidy Scheme (CLSS)?
Under the CLSS scheme, an interest subsidy is provided to the Economically Weaker Sections(EWS), Low Income Group, Middle Income Group-I (MIG-I) Middle Income Group-II(MIG-II). One has to fall in that particular income slab to avail of these benefits.
3. Who are Eligible for PMAY Scheme?
Since the objective of the scheme is to provide housing for all, it primarily aims to assist those households who do not already own pucca houses anywhere in India. However, an exception can be made for a person whose pucca house is less than 21 sqm as an enhancement of the existing house.
4. What are income classifications for different categories under the CLSS scheme?
Households with an annual income of below Rs.3 lakhs come under the Economic Weaker Sections (EWS) category. Those with an income of above Rs.3 lakh and below Rs.6 lakh are classified as Low Income Groups (LIGs). Finally, households with an annual income of above Rs.6 lakh and below Rs.18 lakh fall under the Middle Income Group (MIG) category (MIG I – income up to Rs.12 lakh and MIG – II up to Rs.18 lakh). Persons with an annual income of above Rs.18 are not eligible to avail of benefits of the scheme.
5. Can a person avail of PMAY benefits on more than one component?
One of the key criteria for the PMAY eligibility is that the potential beneficiary should not have previously availed benefits from any other housing scheme offered by the Government of India.
6. Can one apply online for the PMAY scheme?
People seeking and eligible to avail of benefits of the PMAY scheme can directly apply online through the official PMAY portal. All you need to have is your Aadhaar Card number, along with other personal details, such as name, current residence address, number of family members, income and age of the head of the family, etc. Once you have filled in these details in the online form, print and submit it at the closest bank or financial institution covered under the PMAY scheme. The status of the application can be checked in the PMAY list available on the official website of PMAY. The PMAY list includes the name of the applicants who will receive the benefits under the scheme.
7. What are PMAY benefits for EWS/LIG and MIG groups?
For households falling under the EWS and LIG categories, an interest subsidy of 6.5% is available on loan amounts up to Rs.6 lakh. MIG I and MIG II category applicants get an interest subsidy of 4% and 3% of loan amounts on loans up to Rs.9 lakh and Rs.12 lakh, respectively.
8. How is the carpet area defined?
Only the carpet area and not the built-up is considered under the scheme. The carpet area is defined as an area enclosed within the walls of the structure of the house and does not include the thickness of the inner walls. Homes with a carpet area of up to 60, 120, and 200 square meters for EWS/LIG, MIG I, and MIG II, respectively, are eligible for interest subsidy under the PMAY CLSS scheme.
9. How is the subsidy released to the beneficiaries?
Subsidies are released based on the declaration submitted by the beneficiaries to their respective lenders confirming their eligibility to the scheme. The lender fulfils further formalities and submits the request to the nodal agencies. Once the application is approved, the disbursements are made by the financial institution directly to the beneficiaries’ home loan account.
10. Is it mandatory to have a female family member as an applicant or co-applicant?
Yes, a female family member of the family needs to be included as a co-owner of the property to avail of the benefits of this scheme.
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