Pradhan Mantri Awas Yojana (Housing for All Scheme)

On the New Year, 2017’s eve, Prime Minister Narendra Modi announced the Pradhan Mantri Awas Yojana (PMAY) a housing scheme for all. It’s the vision of our Honorable Prime Minister Shri Narendra Modi that everyone has their own home by 2022. It is a mission which has been initiated on 25th June 2015. Pradhan Mantri Awas Yojana (PMAY) or Housing for all is a housing strategy for everyone who belongs to reduce income category, economically weaker section (EWS) and Lower/Middle Income Group (LIG/MIG) in India. The plan comes with an aim of constructing more than two crores homes during the length and breadth of the nation within a period of following seven years. States/UTs will have flexibility to include in the Mission, the Planning area as notified with respect to Statutory Town and which surrounds the concerned Municipal area.

On the basis of cooperative federalism, The Mission provides flexibility to the States/UTs for choosing the best options among following 4 verticals of the “Housing for All Mission” to meet their housing demand.

Four Main Schemes under Pradhan Mantri Awas Yojana (PMAY)

1.Beneficiary-Led construction or enhancement Subsidy:

For individuals of EWS category (A family with an annual income up to Rs. 3 Lakhs) a central assistance of Rs.1.5 Lakhs per beneficiary has been proposed for new house or enhancement under PMAY. Also it has been said that the cities should prepare an integrated project for such beneficiaries.

2. In Situ Slum Rehabilitation:

In this Government of India grant Rs 1 Lakhs per house. Here the term “In-situ” refers to a land as a resource which is used with private participation under Pradhan Mantri Awas Yojana (PMAY) Scheme.

3. Affordable Housing in Partnership:

Under Pradhan Mantri Awas Yojana a central assistance of Rs. 1.5 Lakhs per EWS House has been proposed. Here States should construct houses with private sector or public sector including agencies where 35% of all constructed houses are for EWS category.

4. Affordable houses through Credit Linked Subsidy Scheme (CLSS) for EWS/LIG:

Credit Linked Subsidy Scheme is a Central Sector scheme, while other 3 components are implemented as Centrally Sponsored schemes under Pradhan Mantri Awas Yojana (PMAY) Scheme. Under this scheme beneficiaries of EWS and (Lower Income Group) LIG (A family with an annual income between Rs. 3 Lakhs to 6 Lakhs) seeking housing loans from Banks and others. Under this credit linked subsidy will be only for the loan amounts up to 6 Lakhs. Any amount above 6 Lakhs will be at nonsubsidized rate. The interest subsidy will be credited upfront at the rate of 6.5% for tenure of 15 years or tenure of loan whichever is lower at NPV basis which discount rate is 9%.

Key Points of Pradhan Mantri Awas Yojana (PMAY):

  1. The scheme benefit is available for construction as well as the enhancement of existing house.
  2. A cut-off date should be finalized by States/Union Territories for eligibility of beneficiary.
  3. The beneficiary is defined as a family comprising of husband, wife and unmarried children. An adult earning member (irrespective of marital status) can be treated as a separate household. Further the beneficiary should not have any pucca house anywhere in India.
  4. The houses acquired under Pradhan Mantri Awas Yojana (PMAY) should be in the title of female head of the household or in the joint name of male head of household and his wife. This is the perfect example of encouraging Women Empowerment.
  5. Beneficiary should provide AADHAAR card, Bank A/C No. and PAN no. to avail the benefits.
  6. The advantage of Pradhan Mantri Awas Yojana (PMAY) scheme can be taken once and under only one vertical only.
  7. Houses will deemed to be completed only after the requisite infrastructure, particularly power supply, water supply and drainage/sanitation is made available.
  8. Progress to be monitored through geo tagged photographs of houses under Beneficiary Led Construction (BLC) vertical.

CLSS Scheme for Middle Income Group (MIG) Under PMAY Scheme:

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced an interest subsidy scheme for acquisition/ construction of houses (including re-purchase) to cater to the Middle Income Group also under Pradhan Mantri Awas Yojana (PMAY) called ‘Credit Linked Subsidy Scheme (CLSS) for MIG’ given the projected growth of urbanization in India and the increasing housing demands. CLSS for MIG has been implemented initially in 2017 for a period of one year w.e.f. 01 January 2017 as a Central Sector Scheme.
Scheme will support acquisition/construction of houses (including re-purchase) of 90 sq m (for MIG I) and 110 sq m (for MIG II) carpet area as per income eligibility with basic amenities like water supply, toilet, sanitation, sewerage, road, electricity, etc.
Prime Minister Narendra Modi had announced interest subsidy of 4 percent on housing loans of about Rs. 9 lakh for all individuals with an income of Rs12 lakh yearly and also of 3 percentage subsidy on housing loans of approximately Rs.12 lakh for people earning Rs. 18 lakh. This home loan interest subsidy scheme is part of this authorities ‘Housing for All’ initiative under Pradhan Mantri Awas Yojana . Additional loans outside of the specified limit, if any, will probably be in non-subsidized rate.

A centralized web enabled Management Information System (MIS) has been developed for PMAY(Urban) which can be reached at The system serves as a bridge between the Ministry, State/UT Government, State level Nodal Agencies (SLNA), ULBs and other stake holders and acts as a source of structured information of approved projects, survey details, beneficiary information etc.

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