Current Updates on Pradhan Mantri Awas Yojana

Observing the increase in pauperism and homelessness in India, the Ministry of Housing and Urban Poverty Alleviation, in 2015, introduced an interest subsidy scheme called the Credit Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana. This scheme is based on the idea of providing affordable housing to the urban poor section aims to ultimately eradicating homelessness by the year 2022. The scheme provides housing solutions for the purpose of purchase, construction, extension, improvement of a home and caters to the: Economical Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG), driven by the projected growth of urbanization and consequent housing demands of India.

In order to ideally cater the needs of the people of India, the scheme is timely updated with necessary additions. Some of those are listed down below:

• As the housing scheme is moving at a slow pace, allotting surplus funds is likely to help it achieve its agreed goals. The Pradhan Mantri Awas Yojana is expected to get a 50% increase in the upcoming budget allocation this year. The government plans to build more than two Crore houses in the urban and rural areas which will require this surge in the budget allocation.
• The PMAY scheme is classified into two components namely, rural and urban. The government plans to build 1 Crore new housing units by the end of March, 2019. A similar target is also set for urban housing units as well.
• To achieve its target, the Ministry of Rural Development is working along with the government of various states. Also, month-wise objectives have been set up to complete the construction of the houses.

We hope that this blog answered all your questions regarding the recent updates on Pradhan Mantri Awas Yojana. The mentioned points will be helpful in making an informed decision in case you plan to apply for this highly beneficial scheme. 

Brief guide to PMAY

Owning a home is a dream cherished by most Indians. But due high prices, the dream seldom becomes a reality for many, except for those who decide to avail a home loan. The eligibility for home loans depends on the income level of the individual. This makes it difficult for self-employed or low salaried individuals to get a home loan from NBFCs or even banks.

To ensure that every Indian gets an affordable housing solution, the central government has launched the Pradhan Mantri Awas Yojana. Under this scheme, individuals are to be provided with subsidized home loans for the construction of a dwelling or for the extension of it. Here is a brief description of the scheme to help you understand it better.

What is PMAY?

The Pradhan Mantri Awas Yojna (PMAY) was launched in 2015 by the NDA government with an aim to make “Housing for All” a reality by the year 2022. The houses to be constructed under the scheme are to be pucca houses with sanitation, water facility, and round the clock electrical supply . Originally meant for people belonging to EWS (Economically Weaker Section) and LIG (Lower Income Group), the scheme has been extended to include individuals from MIG (Middle Income Group) as well.

The scheme has laid down various criteria for the individuals that are covered under it.

Who is a beneficiary? 

• A beneficiary under the scheme has been defined as a family comprising of a husband, wife, and unmarried children. The beneficiary should also not own a pucca house either in their name or in the name of any of the family members, in any part of India, and should meet the income criteria.

Income norms under PMAY are:

• For Economically Weaker Section (EWS), the household income should be up to Rs. 3 lakh.
• The income limit for Lower Income Group (LIG) is between Rs. 3 lakh and Rs. 6 lakh.
• Middle Income Group (MIG) comprises of people who have an annual income between Rs. 6 lakh and Rs. 18 lakh. They are also eligible for interest subsidy under the scheme.

 Size of the dwelling area

• For EWS and the LIG, the limit is of 30 square meters. This will apply for the municipal limit of the 4 metropolitan cities.
• For MIG I, the limit is 120 square meters and for MIG II category, it is 150 square meters.

Interest Subsidy 

• MIG beneficiaries with an annual income in the bracket of Rs. 6 lakh to Rs. 12 lakh get an interest subsidy of 4 percent on a 20 year loan of Rs. 9 lakh. For those whose annual income exceeds Rs. 12 lakh would get a subsidy of 3 percent.
• For EWS and LIG households with annual income not exceeding Rs. 6 lakh, the interest subsidy would be 6.5 percent.

The information given above basically covers what the PMAY scheme is all about and should clear any confusion that you might have.