How to apply for Pradhan Mantri Awas Yojana: All you need to Know

 How to apply for Pradhan Mantri Awas Yojana: All you need to Know

In pursuance of Government’s vision of facilitating Housing for All by 2022, Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has launched Pradhan Mantri Awas Yojana (PMAY) under “Housing for All (HFA)” mission for urban areas. The Mission will be implemented through four verticals/components giving options to beneficiaries, ULBs and State Governments. 

These four verticals/components are as below:

a) "In situ" Slum Redevelopment: Slum rehabilitation of slum dwellers with participation of private developers using land as resource.

b) Affordable Housing through Credit Linked Subsidy : Promotion of affordable Housing in urban areas for EWS/LIG sections through Credit Linked Subsidy Scheme (PMAY-CLSS).

c) Affordable Housing in Partnership: Financial assistance at the rate of Rs.1.50 lakh per EWS house being built with different partnerships by States/UTs/Cities.

d) Subsidy for beneficiary-led individual house construction or enhancement : Financial assistance of Rs.1.50 lakh to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own.

Out of the 4 verticals mentioned above, “Affordable Housing through Credit LinkedSubsidy (CLSS)” component only is to be implemented by Primary Lending Institutions (PLIs) viz. Scheduled Commercial Banks, Regional Rural Banks, Housing Finance Companies, and Cooperative Institutions. The other three components will be implemented by State Government through Urban Local Bodies/Authorities, etc.

 A Beneficiary will be eligible for availing only a single benefit under any of the above verticals components. In order that beneficiaries do not take advantage of more than one component, PLIs are required to take NOCs quarterly from State/UT Governments or designated agency of State/UT Governments for the list of beneficiaries being given benefits under credit linked subsidy. For enabling this process, the beneficiaries should be linked to his/her Aadhaar and any other document such as Voter ID Card/Any other unique identification Number or a certificate of house ownership from Revenue Authority of Beneficiary’s native district and State/UT Government or its designated agency should furnish the NOC within 15 days of receipt of such request. 

The Mission with all its components has become effective from the date 17.06.2015and will be implemented upto 31.03.2022. 

The credit linked subsidy component of the mission will be implemented in urban areas only i.e. in statutory cities/towns across the country as per Census 2011. The list of statutory cities/towns is available in NHB website at the following link http://www.nhb.org.in/Urban_Housing/Pradhan-Mantri-

Awas-Yojana.php.

This Scheme replaces the existing Rajiv Rinn Yojana (RRY) Scheme. As the Housing for All Mission has become effective from 17.06.2015, all housing loans sanctioned and disbursed after 17.06.2015 would be eligible for benefit under CLSS, provided it conforms to the PMAY - CLSS scheme.

Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize the CLSS subsidy to the lending institutions and for monitoring the progress of this component. Our Bank has entered into an MOU with National Housing Bank [NHB] as CNA for PMAY-CLSS.

Pradhan Mantri Awas Yojana (Urban) – Housing for All” Mission for urban areas has been implemented with effect from 17.06.2015 to provide interest subsidy on home loans taken by eligible beneficiaries belonging to Economically Weaker Section (EWS) / Lower Income Group (LIG)] for acquisition/construction of house and incremental housing.

The Scheme envisages provision of Home loan to EWS & LIG segment to enable them to buy or construct a new house or for carrying out addition (of a room/kitchen/toilet/bathroom) to the existing building.

Given the projected growth of urbanization in India and the consequent housing demands, Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has launched a new Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana (PMAY-CLSS) to provide interest subsidy for housing loans for acquisition/ construction of house (including repurchase) availed by eligible beneficiaries belonging to Middle Income Group (PMAYCLSS for MIG). The scheme was implemented initially in 2017 for a period of one year with effect from 01.01.2017. MoHUPA has extended the time period of the Scheme upto 31.03.2021 .

Detailed Guidelines of Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme for Economically Weaker Section/Low Income Group (PMAY-CLSS for EWS/LIG/MIG).

What is the purpose of the Scheme Purpose for EWS/LIG/?

For purchase /new construction of a dwelling/house/flat; repurchase of a new construction house and carrying out repairs/ extension/addition of rooms, kitchen, toilet etc., to existing dwelling unit. Repairing work to the existing house can be undertaken in houses which are kutcha, semi pucca and require xtensive renovation.

The houses constructed/acquired should be in the name of the female head of the household or in the joint name of the male head of the household and his wife, and only in cases when there is no adult female

member in the family, the dwelling unit/house can be in the name of male member of the household. This condition is applicable only for new purchases and not for new construction (on an existing piece of land) or for enhancement/repairs of an existing house.

The carpet area of the house/flat being constructed/purchased should be upto 30 square meters and 60 square meters for EWS and LIG,

respectively in order to avail of this credit linked subsidy. The beneficiary, at his / her discretion, can build a house of larger area but interest subvention would be limited to first Rs.6 lakh only.

For extension/repair, the area limit will be 30 square meters and 60 square meters of carpet area for EWS and LIG category respectively.

Definition of Carpet Area:

The net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

Explanation: For the purpose of this definition, the expression “exclusive balcony or verandah area” means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and “exclusive open terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee.

Individual houses financed under the scheme should have provision for basic civic services like water, sanitation, sewerage, road, electricity, etc. The minimum size of houses constructed should conform to the standards provided in National Building Code (NBC). All houses built or expanded under the Mission should essentially have toilet facility. The houses should be designed and constructed to meet the requirements of structural safety against earthquake, flood, cyclone, landslides etc. conforming to the National Building Code and other relevant Bureau ofIndian Standards (BIS) codes.

All Joint owners of the property shall belong to the same family and join as co-applicants.Beneficiaries who already own land in any urban area but do not have any pucca house in their name or in the name of their spouse or any dependent child will also be covered under the scheme. In such cases cost of the land will not be included in the scheme.

Carpt area for MIG:

For purchase /construction of a dwelling/house/flat (including repurchase) in urban areas. Loans for Repair/ Renovation/ Extension of existing dwelling unit are not eligible for subsidy under the scheme.

The carpet area of the house/flat to be constructed/purchased shall be 160 sq. m. for MIG-I and 200 sq. m. for MIG-II in order to avail of credit linked subsidy w.e.f. 01.01.2017, i.e. the date the CLSS for MIG became effective. Dwelling units with larger carpet area are not eligible for subsidy under the scheme.

Note : Carpet area is defined as the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. Individual houses financed under the scheme should have provision for basic civic services like water, toilet, sanitation, sewerage, road, electricity, etc.

Houses constructed under CLSS for MIG should conform to the norms and standards provided in extant guidelines on construction and structural safety in the country. The houses should be designed and constructed to meet the requirementsof structural safety against earthquake, flood, cyclone, landslides etc.conforming to the National Building Code, National Disaster Management Authority (NDMA) guidelines and other relevant Bureau of Indian Standards (BIS) codes.

Beneficiaries who already own land in any urban area but do not have any pucca house in their name or in the name of their spouse or any dependent child will also be covered under the scheme. In such cases cost of the land will not be included in the scheme.

What are the eligibility criteria for Pradhan Mantri Awas Yojna?

FOR EWS/LIG: Individuals/Beneficiary from Economically Weaker Section (EWS) & Low Income Group (LIG) category/families. NRIs can be considered provided they are eligible under the SchemeGuidelines and are also in compliance with other GOI/RBI rules, if any, applicable to NRIs.

A beneficiary family will comprise husband, wife, unmarried sons and/or unmarried daughters.

The beneficiary family should not own a pucca house (an all weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India. An Affidavit as per Annexure I to this effect is to be obtained.

Note: The condition that the beneficiary should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India, is not to be applied to cases of enhancement/incremental housing as long as the enhancement/ incremental housing is with regard to existing lone pucca house owned by the beneficiary.

An adult earning member (irrespective of marital status) can be treated as a separate household;Provided that he / she does not own a pucca (an all weather dwelling unit) house in his / her name in any part of India. Provided also that in the case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the Scheme.

The definition of adult earning member as above under Beneficiary Family is effective from 1.01.2017.

FOR EWS & LIG:

EWS households are defined as households having an annual income upto Rs.3,00,000 (Rupees Three Lakh).

LIG households are defined as households having an annual income between Rs.3,00,001 (Rupees Three Lakh One) up to Rs.6,00,000 (Rupees Six Lakh).

PMAY CLSS subsidy benefits cannot be extended to those beneficiaries who have received benefits under other Central Government schemes and other verticals under PMAY. However, PMAY CLSS benefits can be combined with state government scheme benefits.

FOR MIG:

MIG-I Individuals from Middle Income Group (MIG) Category. MIG - I households are defined as households having an annual income between Rs.6,00,001 (Rupees Six Lakh One) up to Rs.12,00,000 (Rupees Twelve Lakh).

MIG - II households are defined as households having an annual income between Rs.12,00,001 (Rupees Twelve Lakh One) up to Rs.18,00,000 (Rupees Eighteen Lakh).

A beneficiary family will comprise husband, wife, unmarried sons and/or unmarried daughters. An adult earning member (irrespective of marital status) can be treated as a separate household;

a) Provided that he / she does not own a pucca (an all weather dwelling unit) house in his / her name in any part of India.

b) Provided also that in the case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the Scheme.

To be eligible to receive subsidy under CLSS for MIG:

a) The beneficiary family should not own a pucca (an all weather dwelling unit) house either in his/her name or in the name of any member of his/her family in any part of India. 

b) A beneficiary family should not have availed of central assistance under any housing scheme from Government of India.

c) All Joint owners of the property shall belong to the same family and join as co-applicants.

Loan Amount:

Maximum Loan for EWS Category : Rs.20 lakh

Maximum Loan for LIG Category : Rs.30 lakh

For MIG - As per the respective Bank Guidelines

Credit Linked Interest Subsidy:

FOR EWS AND LIG:

For Loans sanctioned & disbursed from 17.06.2015 to 31.12.2016 - The subsidy is available for loan amount upto Rs.6 lakh, at the rate of 6.5% for tenure of 15 years or during tenure of the loan whichever is lower. The maximum subsidy amount will be Rs.2,20,187.

For Loans sanctioned & disbursed on & after 01.01.2017 - The subsidy is available for loan amount upto Rs.6 lakh at the rate of 6.5% for tenure of 20 years or during tenure of the loan whichever is lower. The maximum subsidy amount will be Rs.2,67,280.

Subsidy will be available only for loan amounts upto Rs.6 lakh and additional loans beyond Rs.6 lac, if any, will be at nonsubsidized rate.

For MIG-I - The subsidy is available at the rate of 4% for tenure of 20 years or during tenure of the loan whichever is lower for loan amount upto Rs.9 lakh and additional loan beyond Rs.9 lakh, if any, will be at

nonsubsidized rate.

For MIG-II - The subsidy is available at the rate of 3% for tenure of 20 years or during tenure of the loan whichever is lower for loan amount upto Rs.12 lakh and additional loan beyond Rs.12 lakh, if any, will be at nonsubsidized rate.

The Net present value of the interest subsidy will be calculated at a discounted rate of 9%. Subsidy will be credited by the Bank to the borrower’s account upfront (after receipt of the same from NHB) by deducting it from the principal loan amount of the borrower. The borrower will pay EMI as per applicable lending rates on the remaining balance of the principal loan amount.

Based on the loan amount disbursed to EWS/LIG beneficiaries, the Bank will claim subsidy from NHB on a periodic basis. NHB will release the subsidy amount to Bank directly based on the claims submitted.Subsidy will be released to the Bank by NHB in maximum of nine instalments.

Loan should be in the Standard Asset Category at the time of crediting the subsidy .As per guidelines issued by MoHUPA, Primary Lending Institutions (PLIs), in the home loan applications, shall disclose transparently the Scheme eligibility and ascertain willingness and eligibility of applicants under CLSS for EWS/LIG/MIG.

National Housing Bank (NHB) will be the Central Nodal Agency of our Bank to channelize the subsidy.

If you have availed Housing loan under Pradhan MAntri Awas Yojna and have not received subsidy amount then check the sanction letter given by the Bank. Arall the Terms and Condition of the Sanction letter is complied or not.

If you are eligible for subsidy and didn't receive the subsidy you can directly mail to NAtion Housing Board or the  Ministry of Housing and Urban Poverty Alleviation (MoHUPA).