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11-Nov-2024 | Home Loan
Pradhan Mantri Awas Yojana (PMAY): In India, millions of individuals live with one common dream i.e. ‘Homeownership’. This significant portion of the population aspires to become house owners having a place of their own. To address the needs of the masses, the Govt. of India successfully came up with the program named PMAY i.e. Pradhan Mantri Awas Yojana in the year 2015. The primary goal of this scheme is to provide affordable housing for all eligible aspirants. Seeking the overwhelming response received by the PMAY program, the same continued as PMAY-Urban 2.0, the new phase of the scheme, being announced on August 09, 2024 by the cabinet. Here, we will learn about the various particulars of the PMAY-Urban 2.0 scheme, its benefits, eligibility criteria, interest subsidies, and answer some frequently asked questions to help every individual understand this transformative scheme in a more comprehensive manner.
The primary vision of this scheme is to ensure "Housing for All" by offering affordable housing Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme (Home loan Subsidy) which was launched by the Govt. of India in June 2015. The vision of this program is to ensure "Housing for All" by providing affordable housing to economically weaker sections (EWS), low-income groups (LIG), middle-income groups (MIG), and urban poor. The aim of the PMAY scheme is to ensure that individuals’ issue of housing shortage primarily in the urban areas is resolved via offering affordable housing options, providing financial backing to eligible beneficiaries, and by upgrading existing slums for better living conditions.
Pradhan Mantri Awas Yojana’s next phase called as PMAY-Urban 2.0 focuses primarily upon the urban sector ensuring technological advancements, inclusivity, and sustainability. The Union Cabinet recently approved PMAY-Urban 2.0, under which financial assistance will be provided to 1 crore urban poor and middle-class families through States, Union Territories (UTs), and Primary Lending Institutions (PLIs) to construct, purchase, or rent a house at an affordable cost in urban areas over five years. The scheme will provide government assistance to the eligible urban beneficiaries within this period, extending its benefits to ensure affordable housing for all.
Focus on Sustainable Housing: PMAY-Urban 2.0 has its high focus on promoting sustainable construction practices that are eco-friendly so that every housing solution offered is not only affordable but also environmentally responsible.
Inclusivity: Inclusivity stands for providing equal access to all the resources, policies, benefits, and opportunities for people who might otherwise be marginalised or excluded. The PMAY-Urban 2.0 scheme has its primary focus on inclusivity. The scheme ensures there is equal opportunity given to individuals comprising transgenders, women, and other vulnerable sections of the society at the time of house allocations.
Technological Advancements: Under the PMAY-Urban 2.0 scheme, there has been utilised innovative technology in home construction, comprising modular housing, prefabrication, etc. It supports firm and cost-effective construction.
To benefit from the PMAY-Urban 2.0 scheme, it is essential for the applicants to meet certain necessary eligibility criteria:
Income Criteria: Under PMAY-Urban 2.0, income criteria comprises of Economically Weaker Section (EWS) whose annual household income needs to be up to ₹3 lakhs, Low-Income Group (LIG) whose annual household income between ₹3 lakhs and ₹6 lakhs, and Middle-Income Group I (MIG I) whose annual household income between ₹6 lakhs and ₹9 lakhs.
Ownership: It is important for the eligibility that the applicant or any member of the applicant’s family does not possess ownership of a pucca house across India. For the EWS and LIG categories, the house should be registered in the name of the female head of the household or jointly with the male head.
Beneficiary Definition: A family that includes a husband, wife, and unmarried children will be considered as a beneficiary of PMAY-Urban 2.0.
Property Location: The property needs to be located within the statutory towns as per Census 2011 or any other town notified subsequently by the government.
Interest Subsidy: The PMAY-Urban 2.0 scheme provides interest subsidies under the Credit Linked Subsidy Scheme (CLSS) component, which varies depending on the income group.
Several sections of society will benefit from the PMAY-Urban 2.0 scheme. The following are the key groups that would attain maximum benefit from the scheme:
Women, Transgender, and Other Vulnerable Groups: There are several vulnerable groups that need proper attention and equal opportunity at the time of allocation of houses such as transgenders, widower, unmarried, separated person and others. Therefore, PMAY-Urban 2.0 with its focus on inclusivity serves these groups primarily in housing allocation.
Economically Weaker Sections (EWS): EWS comprises the families or the individuals that have an annual income up to ₹3 lacs only. These sections will benefit from the PMAY-Urban 2.0 scheme, specifically via upgrading existing slums and constructing new houses.
Low-Income Groups (LIG): LIG comprises the families or the individuals that have an annual income between ₹3 lacs and ₹6 lacs only. These sections will benefit from the PMAY-Urban 2.0 scheme, specifically via interest subsidies on home loans and constructing affordable houses.
Middle-Income Groups (MIG): MIG comprises the families or the individuals that have an annual income between ₹6 lakhs and ₹9 lacs only. These sections will benefit from the PMAY-Urban 2.0 scheme, specifically via interest subsidies on home loans so that they can fulfil their dream of homeownership.
One of the key attractions of the PMAY-Urban 2.0 scheme (Pradhan Mantri Awas yojana) is the interest subsidy provided under the Credit Linked Subsidy Scheme (CLSS). The interest subsidy helps reduce the effective home loan rate, making homeownership more affordable for eligible beneficiaries.
The broad features and eligibility criteria of the Interest Subsidy Scheme are provided in the table below:
Home Loan Loan Application: Submit a home loan application with Aavas Financiers through website, Mobile App or Toll-free.
CLSS Application: If you are eligible, apply for the Credit Linked Subsidy Scheme (CLSS) through the same bank or financial institution.
Subsidy Disbursement: Once verified, the subsidy amount will be credited to your loan account, effectively reducing the principal amount of the loan.
The Pradhan Mantri Awas Yojana (PMAY)-Urban 2.0 scheme is a significant step towards realising the dream of affordable housing for all in India. By extending the scheme and focusing on inclusivity and sustainability, the government is ensuring that a larger section of society can benefit from this initiative. Whether you belong to the economically weaker sections, low-income groups, or middle-income groups, PMAY-Urban 2.0 offers you a chance to own a home with the added advantage of interest subsidies. Understanding the scheme’s eligibility criteria, benefits, and application process is crucial for those looking to benefit from this transformative housing scheme.
For more information or assistance with home loans under PMAY-Urban 2.0, feel free to visit Aavas Financiers Ltd
1. What is the main purpose of Pradhan Mantri Awas Yojana (PMAY)?
The purpose of PMAY is to provide affordable housing to eligible urban families, with a focus on sustainable and inclusive housing solutions.
2. Who can apply for PMAY 2.0 Urban?
PMAY eligibility depends on income, property ownership, and location. Families in the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG) can apply if they meet the criteria.
3. Do beneficiaries get an interest subsidy under PMAY?
Yes, eligible applicants can receive interest subsidies through the Credit Linked Subsidy Scheme (CLSS), which is part of PMAY.
4. Is it compulsory to register the property in a woman’s name under PMAY?
For EWS and LIG categories, the property must be registered in the name of a female family member or jointly with a male member.
5. Can I apply for PMAY if I already own a house?
No, applicants or their family members should not own a pucca house anywhere in India to qualify for PMAY.
6. What is the maximum subsidy amount available under PMAY?
The maximum subsidy amount under PMAY is up to ₹1.80 lakh.
7. Can I claim the interest subsidy again if I transfer my home loan to another bank?
No, once you transfer your housing loan to another Primary Lending Institution (PLI), you cannot claim the subsidy again.
8. If I didn’t claim the subsidy from my first bank, can I claim it after transferring my loan?
No, you are not eligible to claim the subsidy after a balance transfer, even if you didn’t claim it earlier.
9. What is the repayment tenure for PMAY home loans?
The repayment tenure is generally up to 20 years, depending on the lender’s policies.
10. How can I apply for PMAY 2.0 online?
You can apply directly through the official PMAY website or visit a Common Service Centre (CSC). Trusted housing finance companies like Aavas Financiers also provide dedicated support for PMAY applications.
11. Do I need to pay any fees to apply for PMAY?
No, there are no fees for applying under PMAY. Applicants only need to ensure they meet the eligibility criteria.
12. What is the difference between PMAY-Urban and PMAY-Rural?
PMAY-Urban is designed for affordable housing in cities, while PMAY-Rural (PMAY-Gramin) focuses on providing housing for rural families.
