PMAY 7 Lakh Houses in Karnataka Under Pradhan Mantri Awas Yojana

PMAY 7 Lakh Houses in Karnataka Under Pradhan Mantri Awas Yojana 

The program was launched on June 1 on the 1st of June, 2015, the Prime Minister’s Awas Yojana aims to end the housing crisis in India by focusing on rural as well as urban areas of the government’s larger Housing for all by 2022 goal. It is composed of two elements:

PMAY Urban OR Pradhan Mantri Yojana-Shahri
PMAY Rural as well as Pradhan Mantri Awas the Yojana-Gramin.

PMAY The key highlights

PMAY:    Pradhan Mantri Awas Yojana
Verticals: PMAY PMAY-Urban aka PMAY-Shahri, PMAY-Rural, also known as PMAY-Gramin

Official website: PMAY urban: https://pmaymis.gov.in/
PMAY Rural: http://iay.nic.in/Launch date: Jun 25, 2015
Valid till PMAY-Urban 30-Sept-September 30, 2022
PMAY-Gramin 30th March 2024

 

PMAY The basis

Although various governments at the center have introduced schemes to tackle India’s housing issue in the 1990s (for instance, the Indira Awas Yojana of the year 1990 or the Rajiv Awas Yojana of 2009) Narendra Modi’s prime ministership unveiled a decentralized plan in 2015, in which the government pledged to provide housing for all citizens of India. We are familiar with this ambitious plan in the form of the Pradhan Mantri Awas Yojana or PMAY.

 

 

Pradhan Mantri Awas Yojana Beneficiaries

The beneficiaries on PMAY’s lists are split into four categories, based on the income per year of the household.

Beneficiary The annual income of the household
EWS is the Economically Weaker Section (EWS) As high as Rs 3 lakhs
Lower Income Group (LIG) From Rs 3 lakhs to 6 lakhs
Middle Income Group – 1 (MIG-1) Between Rs 6 lakhs and Rs 12 lakhs
Middle Income Group 2 (MIG-2) From Rs 12 lakhs to 18 lakhs
The source: Housing Ministry

PMAY Eligibility of the beneficiary

Family Status: A family of husband, wife, and unmarried children is considered to be an entire household, as per the rules set by the PradhanMantri Aawas Yojana. The person who is applying for benefits under the scheme must not reside in a pucca residence in his name or the name of any other member of his family anywhere in India.

home ownership people who have a pucca home that is less than 21 square meters can be added to the enhancement plan for the home.

Age The members who earn an income of an entire family are considered to be part of a separate household, and therefore are eligible for the scheme, regardless of marital status.

Status of marriage: For married couples who have married either the spouses or both with joint ownership can be considered eligible for a single residence, as long as they satisfy the income eligibility criteria of the household as per the scheme.

category: The beneficiaries from the EWS category can avail assistance across all four verticals of missions, while the LIG/MIG category is only eligible under the CLSS part of the mission. Individuals who belong to the SC as well as the ST and OBC categories as well as women belonging to both the EWS or the LIG are also eligible to receive benefits offered under the Pradhan Mantri Awas Yojana.

 

PMAY Rural

To tackle the issue of housing within rural regions, in which the majority of the Indian population lives, despite the rapid urbanization of this agricultural-based economy, the government of the union revamped its Indira Awas Yojana (IAY) to become the PradhanMantri Awas Yojana-Gramin (PMAY-G) effective on April 1st, 2016 after a few deficiencies were discovered during the simultaneous evaluations and performance audit conducted by the Comptroller and Auditor General of India (CAG) in 2014.

The PMAY-G (or PMAY Rural) program is designed in replacing the old kutcha houses (dwellings constructed of mud made of straw-like materials for thatching that isn’t suitable for living in, under extreme weather conditions) in India’s villages using pucca dwellings (dwellings built of sturdy materials such as brick, cement and iron and so on. They protect against the elements and have a long time of life).

The number of homes constructed within PMAY Gramin
Under PMAY-G the target of 2.95 crore homes has been set until 2024. As of now, 1.90 crore houses have already been constructed across India as part of the PMAY-G scheme.

According to the data released to the Housing Ministry in 2019, it takes 114 days, on average to build the house that is built in this program.

Under the PMAY-Gscheme, the beneficiary receives an all-inclusive grant of Rs 1.20 thousand in areas of plain, and hilly areas. 1.30 lakhs in the northeastern states, hilly states, areas with difficulty, Jammu and Kashmir and Ladakh and Ladakh, etc. To construct houses in pucca. The minimum area of houses that can be constructed in the scheme PMAY-G is set at 25 square meters.

Participants in the PMAY-G receive support in the form of unpaid labor wages through the MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) as well as an additional aid of Rs 12,000 to construct toilets as part of the Swachh Bharat Mission-Gramin (SBM-G).

On December 20, 2021, the cabinet has approved to extend of the PMAY-Gramin program until March 2024.

PMAY Urban

It was announced on the 25th of June 2015 and launched on June 25, 2015, the PMAY-U mission aims to eliminate the housing crisis in the urban areas of India, by providing a pucca home to every household eligible by 2022, when India has completed 75 years of independence. Overall the government intends to construct 20 million houses in PMAY-U. PMAY-U mission. In contrast to the original deadline of March 31st, 2022, the urban plan has been extended to the 31st of December 2024 because only 61.77 thousand houses have been built to date which is a fraction of all 12.26 million homes approved in the program.

The phases of Pradhan Mantri Awas Yojana
The plan will be implemented through three steps:

Stage Phase-1 Phase-2 Phase-3
Start date January 4 2014 January 4 4, 2017 January 4 4, 2019
Date of expiration January 3 of 2017 January 3 3, 2019 3 January 2022
Cities that are covered 100 200 The remaining cities
The source: Housing Ministry

Does this the Pradhan Mantri Awas Yojana active or not?

The central government extended the duration of both verticals within the PMAY program. The PMAY-Gramin scheme will run until March 31, 2024. The PMAY-Urban plan is valid until December 2024. However, the benefits of the credit-linked subsidies scheme (CLSS) as part of the scheme were accessible to homeowners only until September 30th, 2022. Because of confusion, the majority of banks in India have stopped providing CLSS to loanees.

While certain deadlines were extended, the benefits provided in Section 80EEAto help promote affordable housing will end at the end of March 2022 as the government has not announced the continuation of the provision in the Union Budget 2022-23.

Area limit for carpets in the provisions of PMAY to beneficiaries

The carpet area of homes that are part of the PMAY scheme is in the range of 30 to 60 square meters for beneficiaries who belong to those belonging to the EWS as well as the LIG category. The carpet area for a home in the PMAY scheme must be up to 160 square meters for beneficiaries who are MIG-I, and 200 sq meters for beneficiaries of MIG-II.

House size PMAY
Category of the applicant Yearly income of rupees Carpet area of the house in sq m Carpet area of the house in square feet
EWS 3 lakh 60 645.83
LIG 6 lakh 60 645.83
MIG-1 6-12 lakh 160 1,722.33
MIG-2 12-18 lakh 200 2,152.78
The source: Housing Ministry

The rules of the government state that the carpeting area can be defined as “the net floor area usable by an apartment, which includes the space covered by the internal partition walls in the house, but excluding the area covered by walls outside’.

To get an understanding of this term, please read our article on carpeting.

PMAY’s components/verticals

The ambitious goal under the Pradhan Mantri Yojana of providing ‘Housing for everyone by 2022’ is expected to be met by implementing four verticals of the scheme. They include:

in-situ Slum Redevelopment (ISSR): It is the term used to describe the rehabilitation of slums through the construction of homes through the private participation of eligible slum dwellers who live on land beneath the slums.
Credit-Linked Subsidy Scheme (CLSS): Provides the central subsidy for home loans ranging from Rs 6 lakhs to Rs 12 lakhs, at lower rates of interest to build new homes or the renovation of homes that are already in use.
Affordable Housing Partnership (AHP): States are to construct affordable housing that receives central support of up to Rs 150,000 via the central government agencies, or through collaboration with the private sector to form the EWS category.
Beneficiary-led individual house construction/enhancements (BLC): Makes provisions that people belonging to the EWS category can either construct a new house or enhance the existing house on their own with central assistance of Rs 1,50,000.
PMAY Credit-Linked Scheme for Subsidy (CLSS)
The Credit-Linked Subsidy Scheme (CLSS) allows borrowers to get an amount of their home loan total at a subsidized rate, based on the buyer category they are into.

People earning between Rs 3 and 3 lakhs fall in that class of the EWS of buyers as per the PMAY and are eligible for an interest-free loan of 6.5 percent on loans that is up to 6 lakhs.
People earning between 3 lakhs to 6 lakhs fall into the LIG category of buyers according to PMAY and are eligible for an interest-free loan of 6.5 percent on a loan that is up to 6 lakhs.
The people who earn between six lakhs and 12 lakhs fall into the MIG-1 category of buyers as per the PMAY and are eligible for an interest-free loan of 4 percent on a loan that is up to 9 lakhs.
People earning between 12 lakhs and 18 lakhs fall in the MIG-2 category of buyers as per the PMAY and receive an interest-free loan of 3.3% on a loan that is up to 12 lakhs.
PMAY interest subsidy under CLSS
Categories for buyers Annum of interest subsidy Maximum loan amount that receives a subsidy
EWS 6.50% Six lakhs rupees
LIG 6.50% Six lakhs rupees
MIG -1 4.00% The amount is Rs 9 lakhs
MIG-2 3.00% Amount of Rs 12 lakhs
The source: Housing Ministry

Please note that any loans that exceed the number of subsidized loans will be at rates that aren’t subsidized.
Be aware that the loan must have been used to purchase an under-construction property, purchase a second market, or build your own home.
By PMAY guidelines, PMAY rules, the property that is purchased by taking advantage of loans under this program must be registered and owned by the female head of household in it to be eligible for the EWS or LIG classifications. Women’s ownership isn’t required if a house is being constructed using a land parcel.
PMAY Subsidy Calculator
Using the PMAY subsidy calculator at the official portal, https://pmayuclap.gov.in/content/html/Subsidy-Calc.html, you can know the exact amount of money you will receive from the government as the subsidy under the CLSS. To determine the amount, you’ll be required to enter specifics like your annual income as well as loan amount, duration, the kind of unit (whether pucca or Kuccha), and the type of ownership (women are required to own a home for EWS or LIG houses) and the size that the property.

In addition to showing the amount of subsidy, in addition, the webpage will display the subsidy type, i.e., EWS, LIG, MIG-1, or MIG-2.

Subsidy amount for PMAY for different categories
Based on the type of loan the borrower is from, they receive different amounts of subsidies for their mortgages under the PMAY CLSS.

The category of “borrower” EWS LIG MIG-1 MIG-2
PMAY CLSS Subsidy amount 2.20 lakhs. 2.20 lakhs 2.67 lakhs. 2.67 lakhs 2.35 lakhs at Rs 2.35 lakhs 2.30 lakhs. 2.30 lakhs
The source: Housing Ministry

Which is the highest level of subsidy that you can receive through PMAY?
The maximum amount of subsidy available through the PMAY program amounts to 2.67 lakhs (Rs 2,67,280 in exact numbers).

PMAY Home benefit for loan subsidy timeline
The same applies to EWS or LIG categories the subsidy benefit is offered on home loans paid out at or after the 17th of June 15th, 2015. For the MIG-1 and MIG-2 categories, the subsidy benefit is available for mortgages for homes that are paid out from April 1, 2017.

How does the subsidy from PMAY get to you?
When your application for support under the PMAY program is accepted, the funds will be moved from the central nodal authority (CNA) into the institution (referred to by the acronym prime lending institution or PLI in official documents) from the bank from which the beneficiary took out from his mortgage. The bank will then transfer it to the account for the home loans of the applicant. This amount will be taken out of your home principal. If you’ve received 2 lakhs of rupees through the PMAY subsidy, and your remaining loan balance is 30 lakhs, the amount will decrease to around 28 lakhs once you have received the subsidy.

Also, How does it work? pmAY interest-subsidy plan to EWS and LIG operate?

Contact numbers for help with CLSS
NHB toll-free phone number

1800-11-3377

1800-11-3388

HUDCO for toll-free numbers

1800-11-6163

How can I submit your application for PM Awas Yojana online by 2022?

It is important to note that only those who have an Aadhaar card are eligible for the advantages of PMAY. PMAY scheme. To apply online, keep your Aadhaar number handy and visit the PMAY portal at https://pmaymis.gov.in.

On the homepage, click the option “apply online” under the tab called “Citizen assessment. Then, choose one of the four verticals you’d like to apply.

If you’re seeking the CLSS subsidy the application must be made to your lender for home loans.

How do I Apply offline to PMAY after 2022?

The eligible candidates can obtain and complete forms for this purpose accessible at common service centers (CSCs). They must pay a cost of Rs 25 plus GST when purchasing this PMAY Subsidy Form. CSCs serve as the entry point to access essential utilities provided by the public in the rural regions of India.

 

Deadline to apply for the PMAY CLSS subsidy

Then in May 2020 Finance Minister Nirmala Sitharaman said the last date for the Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme for the MIG-1 and MIG-2 categories was extended until March 31st, 2021. In those in the LIG EWS and LIG EWS categories, However, the closing date is March 31, 2022.

Time required to extract the amount of the subsidy from PMAY
It can take anywhere from three to four months for the application to be reviewed.

Are existing homeowners getting the benefit of PMAY CLSS when comes to 2022?
If they satisfy the conditions and terms that apply to home buyers currently paying off a mortgage and are eligible to take advantage of this PMAY CLSS subsidy from 2022. But, it is important to remember that the subsidy benefits are available on loans for homes that were paid out on or after June 17, 2015, in the case of borrowers who fall into one of the EWS or LIG categories. If the borrower falls into MIG-1 as well as MIG-2 categories the subsidy benefit is accessible for home loans issued from April 1 or later in 2017.

Home loan PMAY: Important aspects to keep in mind

Aadhaar should: All home loan accounts in PMAY schemes will link to Aadhaar ID numbers for the beneficiaries.

Tenure cap It is only available for a maximum tenure of 20 years.

A no-interest rate concession: The lender from which you’ve taken a home loan will be charged an interest rate applicable to the institution.

A caveat to loan transfer If you change your lender to take advantage of the advantages of low-interest rates even if you’ve already taken advantage of the benefit of interest subvention under the CLSS If you do you won’t be eligible to receive the interest subvention benefits again.

How can I determine the status of the PMAY subsidy?

You can verify your status on your PMAY application by taking a few easy steps. To verify your status online, go to our step-by-step instructions on how to monitor the status of your PMAY application.

How do I download the PMAY Application Form?

Go to the official website of PMAY and then click on the option ‘Citizen Assessment. On the dropdown menu select “Track Your Assessment Status”.

When you click this option, you’ll be presented with a Track Assessment form. Choose either ‘By Name the name of your father, his name and mobile Number, or the ‘By Assessment ID’ option.

Complete the required information and then click “Submit” to complete an application. After the form is displayed at the top of the page, select “Print”.

Banks offering home loans under PMAY
SBI
Punjab National Bank
Bank of Baroda
HDFC Bank
ICICI Bank
Axis Bank
IDFC First Bank
Bandhan Bank
Bank of India
IDBI Bank
Canara Bank

The most important facts regarding PMAY

Full CNA format for PMAYs context

The term CNA refers to the central agency. In the case of PMAY National Housing Bank (NHB), HUDCO and SBI were designated as central nodal agencies.

Method to obtain the assessment ID needed for PMAY

The assessment ID for PMAY is created through the PMAY portal after an applicant has completed the registration procedure. This ID will be used to keep track of the progress of the request.

Banks that can offer PMAY home loans

Several housing finance companies, banks regional rural banks, cooperative banks, and non-banking financial businesses (NFCs) have joined forces with the nodal central agencies HUDCO, SBI, and NHB to provide mortgages for home buyers under different verticals that are part of PMAY. They are officially referred to as the principal loan institutions (PLIs) according to the official PMAY document the financial institutions, at least 244 according to the latest figures available provide individual home buyers a credit-linked subsidy, in addition to other loans offered under the program. Here are the most prominent private and state-run lenders that offer credit-based subsidies for home loans in the PMAY program.

Govt extends PMAU-Urban till December 2024

The cabinet of the Union in its meeting on the 11th of August, 2022 ratified an extension to the PradhanMantri Awas Yojana-Urban until December 31st, 2024. The initial deadline for the center’s flagship program, which includes incentives was March 31, 2022.

In comparison to the centrally-approved assistance in the amount of around 2.03 trillion, only 1.18 trillion has been released. 1.18 trillion has been released up to March 31st, 2022. The rest of the amount of Rs 85,406 crore is granted as central assistance until December 31, 2024, according to the Housing Ministry said, in an announcement.

Recently, the minister of state for urban and housing issues, Kaushal Kishore, told the Lok Sabha in a written reply that the central government is considering extending the PMAY-Urban program until 2024 at the request of the states and union territory governments.

“A proposal to extend the Mission until March 2024 to finish all houses approved under the scheme, up to the 31st of March in 2022 without altering the pattern of funding and methodology for implementation is currently under discussion. A temporary extension of six months for all verticals, except the subsidy program linked to credit, was approved,” the minister said in his response to lower houses.

Females own 70% of the homes under PMAY:

September 9, 2022: By the SBI Research report on the PMAY study, women are the owners of a majority of the homes that are part of this centrally-organized scheme. The study reveals that 123 thousand of homes have been approved in the scheme since. Of these 94 lakh homes are registered exclusively or jointly under the name of women. The study also showed that six districts from Chhattisgarh and 3 districts of Gujarat as well as Haryana are among the 20 districts having the highest percentage of women borrowers in the fresh home loan disbursement as part of PMAY. PMAY subvention scheme linked to credit during FY22.

As per the study, the center has approved 2.03 lakh crore of funding for the scheme from June 2015. Meanwhile, the total investment required to fund the scheme is 8.31 million crores. The central government has released 1.20 lakh crore for this purpose until the end of FY22.

FAQs

Can home ownership be affordable in India?
It’s hard to say that housing costs are inexpensive in India. However, access to mortgage financing as well as longer loan durations plus higher ratios of loan to value along with tax incentive programs has helped make owning a home somewhat more affordable.

Did India have an affordable housing program for the poor before PMAY?
The efforts to provide affordable housing have been attempted over many decades (National Housing Policy 1994, Jawaharlal Nehru National Urban Renewal Mission 2005, and Rajiv Awas Yojana 2013) and the Pradhan Mantri Awas Yojana (PMAY) began in 2015 to offer Housing for All by 2022′. It has provided new energy to this segment. It comprises two parts – it is the PMAY Urban (PMAY-U) and the PMAY-Gramin (PMAY-G).

Are the Jawaharlal Nehru National Urban Renewal Mission 2005 still in operation?
The PMAY-U which was introduced in 2015, combines all of the prior urban housing plans and seeks to tackle the housing crisis in cities of 20 million by 2022.