People’s biggest wish is to own a house once in their lifetime. Thankfully, to make their dream become reality, the Government of India under the leadership of Honorable Prime Minister Narendra Modi, launched the Pradhan Mantri Awas Yojana (PMAY). The Pradhan Mantri Awas Yojana Housing For All Urban, released on 17 June 2015, targets to provide affordable housing to every citizen in India by 31 March 2022. It is a credit-linked subsidy scheme or CLSC on home loans.
This Pradhan Mantri Awas Yojana Housing For All Urban scheme focuses on replacing slums with concrete houses that are affordable to lower-middle and underprivileged sections of society. People can Pradhan Mantri Awas Yojana benefit from subsidized interest rates on home loans via the purchase of a new home, resale, construction, or extension.
What is the Objective of Pradhan Mantri Awas Yojana Housing For All Urban 2021? pmayg.nic.in
Following are the objectives of Pradhan Mantri Awas Yojana Housing For All Urban 2021
- It makes sure both urban and rural sections of society have housing accommodation of their own.
- It provides financial aid to the economically weaker sections of society for residential construction.
- It merges the public and private sectors to construct houses for the economically weaker section.
- It provides housing to economically weaker women and backward groups such as Scheduled Castes and Scheduled Tribes.
What are the Pradhan Mantri Awas Yojana Benefits?
Following Pradhan Mantri Awas Yojana Benefits
- The Pradhan Mantri Awas Yojana Housing For All Urban scheme aims at providing a subsidized interest rate of up to 20 years at 6.5% on housing loans for Economically Weaker Section or Lower Income Group, 4% in the Middle-Income Group I, and 3% in Middle Income Group II category.
- Pradhan Mantri Awas Yojana Housing For All Urban provides an interest subsidy (Pradhan Mantri Awas Yojana Subsidy) benefit of up to 2.67 lakhs.
- The preference is given to senior citizens and differently-abled concerning the allocation of ground floors in the houses.
- The construction of houses makes use of sustainable and eco-friendly technologies.
What are the Income Classifications of Pradhan Mantri Awas Yojana?
Pradhan Mantri Awas Yojana Housing For All Urban avails to two sections of society
- PMAY-U (for urban section)
- PMAY-G (for rural section) Pradhan Mantri Awas Yojana Gramin
The Income Classifications of PMAY is four categories based on the candidate’s housing needs, financial state, and annual income.
|Income Category||Annual Household Income In Rs.|
|EWS (Economically Weaker Section)||Up to 3 Lakhs|
|LIG (Lower Income Group)||From 300,001 to 600,000|
|MIG I (Middle Income Group I)||From 600,001 to 12,00,000|
|MIG II (Middle Income Group II)||From 12,00,001 to 18,00,000|
Apart from these categories the scheme also holds for minorities and weaker sections of the society.
- Minorities: Minority candidates are eligible to avail of the scheme including people with respect to the Socio-Economic and Caste Census data.
- Scheduled tribes/ Schedules Castes
- OBCs under BPL
- Freed bonded laborers
- Kin and widows of Indian Military Services
- Kin and widows of ex-servicemen, individuals killed in action, and those under a retirement scheme
- Transgender Communities
- Women: Women coming under EWS and LIG categories
What is the Pradhan Mantri Awas Yojana Eligibility in 2021?
One should fulfil the following criteria in order to be eligible for Pradhan Mantri Awas Yojana Housing For All Urban in 2021:
- The net family income of the candidate must be between 6 to 18 lakhs per year. It denotes the merged income of the spouses.
- The house must be their first house.
- The property shall be a newly constructed one.
- The people having their household income in between 6 lakhs to 12 lakhs will get a subsidy of 4%, and the people having a household income between 6 lakhs to 18 lakhs will get a subsidy of 3%.
Here is a table that denotes the subsidy amount the candidates of various categories will receive under the Pradhan Mantri Awas Yojana Housing For All Urban Scheme
|Income Group||Annual Household Income In INR||Subsidy calculated on a maximum loan amount of (In INR)||Subsidy available on home loan interest rate (in %)||Maximum subsidy available in INR|
Weaker Section (EWS)
|Lower Income |
|300,000 to |
Group (MIG I)
|600,000 to |
Group (MIG II)
|12,00,000 to |
How to Apply For Pradhan Mantri Awas Yojana Home Loan?
You can Apply For the Pradhan Mantri Awas yojana Home Loan in the following ways
- You can Apply For Pradhan Mantri Awas yojana Home Loan from any Bank or NBFC to be provided with the Pradhan Mantri Awas Yojana Subsidy. Fill the home credit linked application form and submit.
- Your Pradhan Mantri Awas yojana Home Loan application will be forwarded to CAN if you fit in all the eligibility requirements.
- Once your Pradhan Mantri Awas yojana Home Loan application gets approved, the subsidy amount will be sent by CAN to the lender who has lent you the money.
- This Pradhan Mantri Awas Yojana Subsidy amount will be credited to your record lowering the total principal amount of your home loan.
How to Apply For Pradhan Mantri Awas Yojana? Registration
You can Apply For Pradhan Mantri Awas Yojana on both offline and online platforms
Pradhan Mantri Awas Yojana Apply Online
- Visit the Pradhan Mantri Awas Yojana Official Website pmaymis.gov.in and verify your Aadhar Card by entering the 12-digit Aadhar Card number.
- Once Aadhar is verified, fill in the required personal details and click on ‘Submit.
- After you have filled out the Pradhan Mantri Awas Yojana Application Form, you will receive a reference number for your application for future use.
Visit the nearest Common Service Centre (CSC), get the Pradhan Mantri Awas Yojana Application Form, fill it up and submit it. You will also receive a reference number for your application for future use.
Pradhan Mantri Awas Yojana Documents Required
- Duly signed application form with correct details.
- Property documents (Deed of sale or sale agreement, allotment letter, NOC from society/builder).
- ID proof (Aadhar card, driving license, voter ID, PAN card).
- Address proof (passport, voter card, Aadhar card, rent agreement, or latest utility bill).
- Income proof.
- For salaried employees: 6 months’ Salary Slip, Last 6 months’ Bank Statement, Latest copy of Form 16.
- For self-employed: Balance sheet, profit & loss account, IT returns, computation.
Lakhs of homes are already constructed in 500 Indian cities and towns under the Pradhan Mantri Awas Yojana Housing For All Urban Scheme since its launch in June 2015. Construction has begun in urban areas, and the housing development in rural areas is also underway and will meet its target very soon. Construction in phases 1 and 2 is completed, and phase 3 will also be finished around March 2022.
Can I transfer my existing home loan under CLSS?
Transfer of existing home loans is possible only if the borrower meets the eligibility criteria for the loan under CLSS, which is income-based and meant to target the Economically Weaker Sections (EWS) of the society. The maximum subsidy is already defined as per the income bracket for EWS, LIG, MIG 1 and MIG 2, and the size of the dwelling.
Is there a processing fee for availing loan under PMAY?
There is no charge for the borrower. However, the lender is paid a sum of Rs3,000 by the Central Government as processing fees.
Will I be eligible for the CLSS scheme if I am a co-applicant of my father’s home loan for a property owned by him?
No. If you are a co-applicant of a home loan, you are not eligible for CLSS benefits under PMAY. The scheme is aimed at providing Housing for All. So, if an individual or any of their family members already own a pukka house, he or she cannot get an interest subsidy for a home loan under the scheme.
Are there any preferential treatments to beneficiaries proposed for affordable housing?
Preference under the Scheme will be given to Manual Scavengers, Women (with overriding preference for widows), persons belonging to Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, Minorities, Persons with disabilities and Transgender communities subject to beneficiaries being from EWS / LIG segments.
Is it mandatory to have women ownership to avail PMAY subsidy?
Yes, it is mandatory to register the house in the name of a female member of the family for EWS and LIG families to avail of PMAY benefits. However, a male member can be a joint owner. In the case of MIG 1 and MIG 2 categories, either the male or the female can be the homeowner, shares Rituraj Verma, Partner at Nisus Finance.