Pradhan Mantri Awas Yojana

Central government during 2014 has launched a comprehensive mission called “Housing for All by 2022” at the time when the nation completes 75 years of its independence.

The mission will be implemented through Pradhan Mantri Awas Yojana – Urban program during 2015- 2022 and will provide central government assistance to Urban Local Bodies (ULBs) and other    implementing agencies through States/UTs

The program will be implemented through four verticals. They are

  • “In Situ” Slum Redevelopment (ISSR)
  • Affordable Housing through Credit Linked Subsidy (CLSS)
  • Affordable Housing in partnership (AHP)
  • Subsidy for beneficiary-led individual house construction (BLC).

Selecting Beneficiaries

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.

Household income

  1. 0-25000 per month: Any component can be selected
  2. 25001-50000 per month: Only CLSS EWS/LIG component can be selected
  3. 50001 – 1,00,000 per month: CLSS MIG-I
  4. 1,00,001 – 1,50,000 per month: CLSS MIG-II

Benefits of PMAY

  • ISSR: Central government will grant Rs.1.00 Lakh per house and State and ULB share will be at the discretion of State
  • AHP and BLC: Central Government assistance of Rs.1.50 Lakh per dwelling unit and State and ULB share will be at the discretion of State
  • CLSS: Upfront subsidy @ 6.5% for EWS and LIG for loans up to Rs. 6 lakh. Interest subsidy @4% on home loans up to Rs. 9 lakh for MIG-1 and interest subsidy @3% on home loans up to Rs. 12 lakh for MIG-II.

Credit Linked Subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc to existing dwellings as housing. The carpet area of the house being constructed should not more than 30 sq.m and 60 sq.m for EWS and LIG respectively.

The beneficiary at his/her discretion can build the house of larger area but interest subvention would be limited to first Rs.6.00 Lakhs only. Additional loans beyond Rs.6.00 Lakhs will be at non subsidized rate.

EWS and LIG seeking housing loans from Banks, HFCs and other such institutions would be eligible for an interest subsidy at the rate of 6.50% for a tenure of 20 years or loan tenure whichever is lower. The Net present value (NPV) of the interest subsidy will be calculated at a discount rate of 9%.

Government of India under the aegis of the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has launched ‘Credit Linked subsidy Scheme (CLSS)’ for Urban Areas under the ambit of Pradhan Mantri Awas Yojana. The CLSS-MIG which was implemented initially for a period of one year i.e., from 01.01.2017 to 31.12.2017 has been further extended up to 31.03.2020.

The carpet area of house under this Scheme should be up to 160 sq. mts. for MIG-I beneficiaries and up to 200 sq. mts. for MIG-II beneficiaries. Interest subsidy @4% on home loans up to Rs. 9 lakh for MIG-1 and interest subsidy @3% on home loans upto Rs. 12                  lakh for MIG-II.

Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions.

Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB) have been acting as Central Nodal Agencies(CNA) for monitoring the progress of this component. Primary Lending intuitions can register only with one CNA by signing MOU.

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