How Pradhan Mantri Awas Yojana (PMAY) helps to build your dream home?

Pradhan Mantri Awas Yojana (PMAY) is a housing scheme launched by the Government of India in June 2015. The goal of the scheme is helping to build your dream home. And to provide affordable housing for all by the year 2022. The scheme is targeted toward providing affordable housing for the economically weaker sections (EWS), lower-income groups (LIGs), and middle-income groups (MIGs) of society.

The scheme provides financial assistance to eligible beneficiaries for the construction or enhancement of a house. The financial assistance is provided in the form of a subsidy, which is credited directly to the beneficiary’s account. The subsidy amount varies based on the income group of the beneficiary, the location of the house, and the cost of construction.

Eligible Criteria for PMAY

• To be eligible for the scheme, the beneficiary must be a first-time homebuyer and should not own any other pucca house. The beneficiary’s annual income should be within the limits specified for the respective income group.
• Additionally, the beneficiary should not be a defaulter of any housing loan availed from any financial institution or government agency.
• To apply for the scheme, the beneficiary must first visit the official PMAY website and check their eligibility. If eligible, the beneficiary can then register on the website and fill out the application form. The form must be accompanied by the required documents, including proof of income, identity, and ownership of the land on which the house is to be constructed. The beneficiary must also submit an estimate of the cost of construction.
• After the application is submitted, it’s verified by the concerned authorities. If the application is found to be complete and eligible, the subsidy is credited directly to the beneficiary’s account. The beneficiary can then use the subsidy amount to construct or enhance their house.

Importance of CLSS in PMAY

• The Credit Linked Subsidy Scheme (CLSS) is a component of the Pradhan Mantri Awas Yojana (PMAY) launched by the Government of India. The scheme is designed to provide subsidies on home loans to eligible beneficiaries from the economically weaker sections (EWS), lower-income groups (LIGs), and middle-income groups (MIGs) of society.
• Under the CLSS, eligible beneficiaries can receive a subsidy on their home loan interest rate, which can be as much as 6.5% for EWS and LIG, and 4% for MIG-I and MIG-II, respectively. The subsidy is credited directly to the beneficiary’s account and is linked to the home loan account.
• The main goal of the CLSS is to make home loans more affordable for the targeted groups, who often face difficulties in obtaining home loans due to their income levels. By reducing the cost of borrowing, the CLSS aims to increase the affordability of homes and encourage more people to buy their own homes.
• To be eligible for the CLSS, the beneficiary must be a first-time homebuyer and should not own any other pucca house. The beneficiary’s annual income should be within the limits specified for the respective income group. Additionally, the beneficiary should not be a defaulter of any housing loan availed from any financial institution or government agency.
• To apply for the CLSS, eligible beneficiaries must first visit the official PMAY website and check their eligibility. If eligible, the beneficiary can then approach a bank or housing finance company to avail of the home loan with the benefit of a subsidy.
• The bank or housing finance company will then verify the application and credit the subsidy amount to the home loan account of the beneficiary.

Sections of PMAY

The Pradhan Mantri Awas Yojana (PMAY) has two main sections:

1. Pradhan Mantri Awas Yojana — Urban (PMAY-U): This section of the scheme targets urban areas and aims to provide affordable housing for all in the urban areas by the year 2022. This section of the scheme provides financial assistance for the construction or enhancement of houses for economically weaker sections (EWS), lower-income groups (LIGs), and middle-income groups (MIGs) of society in urban areas.
2. Pradhan Mantri Awas Yojana — Gramin (PMAY-G): This section of the scheme targets rural areas and aims to provide affordable housing for all in the rural areas by the year 2022. This section of the scheme provides financial assistance for the construction or enhancement of houses for economically weaker sections (EWS), lower income groups (LIGs), and above-the-poverty-line (APL) households in rural areas.
3. Both sections of the scheme provide financial assistance in the form of a subsidy, which is credited directly to the beneficiary’s account. The subsidy amount varies based on the income group of the beneficiary, the location of the house, and the cost of construction. Eligible beneficiaries can apply for the scheme through the official PMAY website by checking their eligibility, registering, filling out the application form, and submitting the required documents.

Who are all not Eligible for PMAY Scheme?

Certain criteria must be met to be eligible for the Pradhan Mantri Awas Yojana (PMAY) scheme. If an individual does not meet these criteria, they may not be eligible for the scheme. Some of the reasons why an individual may not be eligible for the PMAY scheme include:

1. Not being a first-time homebuyer: The PMAY scheme is targeted toward individuals who are looking to buy or construct their first house. If an individual already owns a pucca house, they may not be eligible for the scheme.
2. Income levels: The PMAY scheme has different income limits for different income groups. If an individual’s annual income is above the limit specified for their respective income group, they may not be eligible for the scheme.
3. Defaulting on previous housing loans: If an individual has defaulted on any housing loan availed from any financial institution or government agency, they may not be eligible for the scheme.
4. Not meeting the property standards: The PMAY scheme has certain property standards that need to be met by the beneficiaries, if the property does not meet the standards then the individual may not be eligible for the scheme.
5. ​​Not having the required documents: The PMAY scheme requires certain documents like proof of income, proof of identity, and proof of ownership of the land to be submitted along with the application form. If the applicant does not have these documents, the application may be rejected.

It is always a good idea for an individual to check their eligibility for the PMAY scheme before applying, to avoid disappointment. If an individual is not eligible for the scheme, they may consider other options such as taking a loan from a bank or housing finance company or looking into other government housing schemes.

Needed documents to apply for PMAY Scheme

To apply for the Pradhan Mantri Awas Yojana (PMAY) scheme, certain documents are required to be submitted along with the application form. These documents are used to verify the applicant’s identity, income, and ownership of the land on which the house is to be constructed. The specific documents required may vary depending on the section of PMAY (PMAY-U or PMAY-G) and the income group of the applicant. Some of the documents that may be required for the PMAY scheme are:

1. Proof of identity: This could be a government-issued photo ID such as an Aadhaar card, PAN card, passport, voter ID, or driving license.
2. Proof of income: This could be a salary slip, income tax return, or bank statement that shows the applicant’s income.
3. Proof of ownership of the land: This could be a land title deed, a sale deed, or any other document that establishes the applicant’s ownership of the land on which the house is to be constructed.
4. Proof of residence: This could be a ration card, voter ID card, passport, or any other document that proves the applicant’s residence.
5. BPL (Below Poverty Line) certificate (for PMAY-G): This certificate is issued by the Gram Panchayat or the Block Development Officer, certifying that the applicant belongs to the BPL category.
6. Property papers: These include the title deed, land tax receipt, and other related documents of the property.
7. Construction cost estimate: This is an estimate of the cost of construction of the house, prepared by a registered architect or engineer.
8. Home loan sanction letter (for CLSS): This letter is issued by the bank or housing finance company, which confirms that the applicant has availed of a home loan and is eligible for the subsidy under the CLSS.

It is important to note that the above list of documents is not exhaustive. The specific documents required may vary depending on the applicant’s specific situation and the section of PMAY they are applying for. It is always a good idea to check the official PMAY website for the most up-to-date list of required documents.

Conclusion

• In conclusion, PMAY is a housing scheme launched by the Government of India that aims to build your dream homes and provide affordable housing for all.
• It provides financial assistance as a subsidy to eligible beneficiaries for the construction or enhancement of a house.
• To apply for the scheme, eligible beneficiaries must visit the official PMAY website, register, fill out the application form, and submit the required documents.

The scheme is a great opportunity for those who are looking to buy or construct their own house but are facing financial constraints.