Pradhan Mantri Awas Yojana-Details and Registration

What is Pradhan Mantri Awas Yojana?

To promote and encourage sustainable and affordable housing, the Government of India launched the Pradhan Mantri Awas Yojna or PMAY in June 2015.

Income Range for Various Economic Groups

The following table divides the various economic groups as per their annual income range for easier assessment.

Economic SectionsAnnual Income Range
EWSUpto Rs. 3 Lakh
LIGBetween Rs. 3 Lakh and Rs. 6 Lakh
MIG IBetween Rs. 6 Lakh and Rs. 12 Lakh
MIG IIBetween Rs. 12 Lakh and Rs. 18 Lakh

Offers and Advantages of PMAY-U

The various features and benefits of PMAY-U have been enlisted in the table below to help prospective homebuyers.

FeaturesMIG-IMIG-II
Interest rate subsidy4.00%3.00%
Maximum carpet area of a dwelling unit 160 sq. m200 sq. m
Maximum subsidy amountRs. 2.35 LakhRs. 2.30 Lakh
Maximum Home Loan Quantum for SubsidyRs. 9 LakhRs. 12 Lakh
Maximum home loan tenure20 years20 years
The discount rate for interest subsidy NPV9%9%

Offers and Advantages of PMAY-G

The table listed below showcases some of the basic features that individuals can expect from the Gramin division of PM Awas Yojana.

FeaturesEWSLIG
Interest rate subsidy6.50%6.50%
Maximum dwelling unit carpet area30 sq. m60 sq. m
Maximum interest rate subsidy amountRs. 2.67 LakhRs. 2.67 Lakh
Maximum home loan quantum for subsidyRs. 6 lakhRs. 6 lakh
Maximum home loan tenure20 years20 years
The discount rate for interest subsidy NPV9%9%

 

Features of PMAY Scheme

As mentioned previously, the primary goal of Pradhan Mantri Awas Yojana 2020 is to provide housing for all by 2022. Apart from this overall objective, listed below are some other features that the scheme brings along for its beneficiaries.

  • PMAY looks to offer affordable housing to individuals and families belonging to the economically challenged section of society.
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  • It prioritizes housing for women, as well as minorities, including those belonging to the Scheduled Castes and Scheduled Tribes.

  • Senior citizens can take advantage of the scheme with the government favouring their claims when it comes to ground floor properties.

  • To avail the benefits from this scheme, interested individuals need to register for it. Also, it is mandatory for women, primarily mothers or wives, to be named the beneficiary.

  • Other minorities are also preferred under Pradhan Mantri Awas Yojana, including the transgender community, widows and members belonging to the lower-income group.

PMAY Scheme Eligibility Criteria

Before applying to the scheme, however, one must consider whether he/she is eligible to receive subsidies. The following factors determine eligibility for PMAY.

  • Depending on a person’s income range, he/she would fall in EWS, LIG or MIG categories.

  •  If the family’s annual income exceeds the income range for the MIG group, they would be ineligible to avail benefits under the Pradhan Mantri Awas Yojana.

  • A woman’s name should be on the deed or the property papers. It can either be a sole proprietorship, where one of the owners must be female to avail the scheme.

  • Only when there are no females in a family can this rule be surpassed.

  • PMAY is only available for the new property purchase. An applicant must not possess any other properties when applying for the said credit-linked scheme.

  • The beneficiaries must not have availed any central assistance or benefits from any other housing scheme beforehand, from either the state or the central government for the scheme to apply.
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  • The house or property for purchase must belong to one of the areas, towns, villages or cities as per the Census 2011.

  • Beneficiaries must not have availed benefits under PMAY or any other credit-linked subsidy scheme from any of the financial institutions beforehand.

  • If the primary reason for availing a home loan is the renovation or extension of an already existing property, the said work must be completed within 36 months from receiving the first loan installment.

How to Apply for PMAY Scheme?

 

  • Step 1: Visit the official government website belonging to PMAY.
  • Step 2: Click on the ‘Citizen Assessment’ option under the ‘Menu’ tab.
  • Step 3: An applicant must enter his/her Aadhaar number.
  • Step 4: With the successful submission of the Aadhaar number, he/she will be redirected to the application page.
  • Step 5: The applicant must proceed to enter all relevant details on this page, including income details, personal details, bank account details and other necessary information.
  • Step 6: Applicants should recheck all information before submission.
  • Step 7: Once a person clicks on the ‘save’ option, he/she will find a unique application number.
  • Step 8: Applicants should, next, download the filled-in application form.
  • Step 9: Finally, the person can deposit the form at his/her nearest CSC office or a financial institution offering PMAY. He or she must also submit all necessary documents along with the form.

Alternatively, individuals can opt for the offline application procedure and approach an authorised bank branch to apply for the scheme if they find the online process inconvenient.

Also read: Banglar Bhumi

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Documents Required for Pradhan Mantri Awas Yojana

Documents necessary to apply for PMAY differs based on whether the beneficiary is a salaried or a self-employed individual.

  • For salaried applicants

Those who are salaried need to present the following documents to avail of the benefits from this CLSS

  • Application form (Download from official website).

  • Proof of identity – Pan Card is mandatory. Additionally, individuals need to provide an additional identity proof, which can include Aadhaar Card, Voter ID Card, Driving License, Passport, Photo Credit Card, or any other Photo-identity card issued by a government authority.

  • Proof of address – Acceptable documents include valid passport, Voter ID Card, Aadhaar Card, utility bill, rent agreement, life insurance plan, residence address certificate, savings bank account statement in post office, property tax receipts, credit card statement that should not be older than three months, etc.

  • Proof of income – 6 months’ bank statement, last 2 months salary slip and ITR or latest Form 16.

  • Property documents – Agreement to sell, a chain of property documents (as required), the allotment letter or buyer agreement, and a copy of receipts related to any payments made to the developer.

  • For self-employed applicantsSelf-employed individuals need to present mostly the same set of documents as that of salaried people. However, they must provide certain details regarding their business, along with additional documents as income proof.

  • Address proof for businesses – One of the documents to prove the existence of an individual’s business is mandatory. It may include trade license certificate, Shops and Establishment Certificate, sales tax, PAN Card or VAT registration certificate, SEBI Registration Certificate, Memorandum of Association, Partnership Deed, etc.

  • Income proof – It can include ITR for the preceding two years, Profit & Loss and Balance Sheet info. Lastly, the individual also needs to provide the last six months’ account statement for the business, along with a similar statement for his/her personal bank account.

One must make sure that he/she is eligible for the subsidy before application. Also, the applicant should check whether his/her name is present on the beneficiary’s list as well to receive the subsidy benefit.

Tax Benefits under PMAY

  • Section 80C – Deductions of up to Rs. 1.50 Lakh per year on the home loan principal repayment.

  • Section 24(b) – Deductions of up to Rs. 2 Lakh per year on home loan interest payment.

  • Section 80EE – First-time homebuyers can avail yearly tax relief of up to Rs. 50,000.

  • Section 80EEA – Deductions of up to Rs. 1.50 Lakh per year on home loan interest payment in case your property comes under the affordable housing category.