All About Pradhan Mantri Awas Yojana [PMAY – urban]

A substantial part of India’s population is still struggling with the fulfillment of three basic needs- food, clothing and shelter. While food and clothing are still accessible to many, shelter creates a huge gap that is now being tried to be bridged by the government. So, here’s everything that you wanted to know about the all-inclusive housing scheme of Government of India that goes by the name of PMAY.
Pradhan Mantri Awas Yojana (PMAY) was started on 25 June 2015 by our honorable Prime Minister Shri Narendra Modi with a mission to provide housing for all in urban areas by the year 2022.
Under this, it offers a credit-linked subsidy scheme (CLSS). The government of India will provide the interest subsidy on housing loans for purchase, construction, extension, or improvement of houses (including repurchase). The grant will be paid upfront on loan.
The scheme makes the home loan affordable for beneficiaries as the subsidy under the credit-linked subsidy scheme of PMAY reduces the interest paid on the home loan up to 6.5% interest subsidy in EWS (Economically weaker section) or LIG (Lower income group), 4% in MIG-I and 3% in MIG-II (Middle income group)category.

Following are the characteristics of the scheme:
Interest subsidy benefit of up to 2.67 lakh.
The interest subsidy will be available for a maximum loan tenure of 20 yrs or the loan tenure, whichever is lower.
There is no cap on the loan amount or the cost of the property
There are four categories of the scheme where the customers falling under any one group will get the benefit. Below are the following categories:
• EWS (Economically weaker section)
• LIG (Lower-income group)
• MIG 1 (Middle-income group 1)
• MIG 2 (Middle-income group 2)

Categories Household Income
● EWS (economic weaker section) - 3 lakhs or below
● LIG (Lower income group) - 3.01 lakhs to 6 lakhs
● MIG 1 (middle income group) - 6.01 lakh to 12 lakh
● MIG 2 (middle income group) - 12.01 to 18 lakhs

Subsidy Amount
● EWS (economic weaker section) - 6 lakh
● LIG (Lower income group) - 6 lakh
● MIG 1 (middle income group) - 9 lakh
● MIG 2 (middle income group) - 12 lakh

Interest subsidy
◆ EWS (economic weaker section) - 6.5%
◆ LIG (Lower income group) - 6.5%
◆ MIG 1 (middle income group) - 4%
◆ MIG 2 (middle income group) - 3%

Maximum carpet area (In square feet)
● EWS (economic weaker section) - 645
● LIG (Lower income group) - 645
● MIG 1 (middle income group) - 1722
● MIG 2 (middle income group) - 2152

Maximum subsidy
● EWS (economic weaker section) - 2.67 lakh
● LIG (Lower income group) - 2.67 lakh
● MIG 1 (middle income group) - 2.35 lakh
● MIG 2 (middle income group) - 2.30 lakh

Validity of scheme
◆ EWS (economic weaker section) - 31 march 2022
◆ LIG (Lower income group) - 31 march 2022
◆ MIG 1 (middle income group) - 31 march 2020
◆ MIG 2 (middle income group) - 31 march 2020

Women ownership
● EWS (economic weaker section) - Mandatory
● LIG (Lower income group) - Mandatory
● MIG 1 (middle income group) - Not mandatory
● MIG 2 (middle income group) - Not mandatory

Availability and amount of interest subsidy are subject to meeting income criteria as per various categories under the scheme.

Eligibility:
There should not be a pucca house of any beneficiary (including husband, wife, or minor/dependent children).
This should be the first house of the beneficiary.
In the case of a married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
Should not have availed central assistance under any housing scheme from the government of India.

Applicability:
Under any category (EWS/LIG, MIG-1, MIG-2), loan approved on or after 01/01/2017 (revised date) will be eligible to get the benefit of the scheme.

How to Apply:
If you are eligible for the PMAY subsidy benefit, you broadly have the following options available:

Online route - You can apply directly from the website of PMAY - pmaymis.gov.in

CSC centers - These are common service centers under the government that operates in most of the cities of India. They will charge a fee of rupees 25.

Banking Channels - Housing loans from banks, housing finance companies and other such institutions for acquiring/constructing houses can assist you to apply for the scheme.

Important Note – The deadline to apply as a beneficiary for this scheme is March 2020 (for MIG-I and MIG-II) and is March 2022 (for EWS/LIG). So, apply timely and make the most of it. Also, spread this useful information as rigorously as possible.