Pradhan Mantri Awas Yojana (PMAY) is an initiative by Government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 31 March 2022. It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) for the rural poor. This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc. Total 88 lakhs houses are approved against the total demand of 1.12Cr as of 29 Aug 2019.
Who are all eligible?
The scheme is primarily aimed at providing housing for all. Therefore, understandably, all those who already own a home or any of their family member own a home, are kept out of the benefits of PMAY.
The rule says, “The beneficiary family should not own a house and the beneficiary family should not have availed of central assistance under any housing scheme from Government of India.” A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters. To avoid duplication, beneficiary family members have to provide their Aadhaar numbers while applying for the loan.
But, as per the guidelines, “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.”
So, even if children (married or unmarried) are staying with their parents in a house owned by the parents (or on rent, in the same or another city), they can opt for PMAY provided they are earning and don’t own any other home.
For a married couple living on rent and even if their parents own a home, will anyhow is treated as a separate household. However, if they wish to avail PMAY benefits, they will be eligible for a single house, bought by either of the spouses or both together in joint ownership.
Documents Required For Pradhan Mantri Awas Yojana:
1) Identity proof
PAN Card and any one of the following documents such as Voter ID Card, Aadhar Card, Passport, Driving License, Credit Card with Photo, Government body issued photo ID Card and letter from public authority or public servant verifying the applicant’s identity with photo (he/she should not be more than 30 years old)
2) Address proof
You can present any of the following documents like:
– Voter ID Card
– Aadhar Card
– Passport
– Latest Electricity Bill
– Rent agreement on stamp paper
– Bank account statements reflecting the applicant’s address of commercial nationalized banks
– Credit card statements which are not older than 3 months
– Life insurance policy
– Residence address certificate letter provided by an employer on the letterhead of the company
– Sale deed copy of the residential property
– Property or municipal tax receipt
– Post office saving bank account statement
– Family pension or pension payment orders issued to retired employees by Public Sector Undertaking and Government departments
– Letter of allotment of accommodation from employer published by Central or State Governments departments
3) Proof of income
You will need to provide all the below-mentioned documents such as:
– Salary Slips of last 2 months
– Last 6 months bank statement of the Salaried account
– Latest Form 16/Income Tax Returns (ITRs)
4) Other documents
Documents related to ongoing loans along with 6 months repayment bank statements or paid EMIs papers
5) Property documents
You will need to submit all documents such as:
– Copy of complete property’s documents – chain as applicable
– Copy of agreement to sell, if executed
– Copy of buyer agreement and allotment letter
– Copy of payment receipts made to the developer
All these property documents required are valid wherever applicable.
How to apply For PM Awas Yojana
PMAY Application can be obtained and filled through two methods. Applicants can either obtain the application form at a nominal cost of Rs.25/- from the Common Service Centres established by the government of states and Union Territories.
The second mode of registration is the online mode in which applicants can register through the official website of the Ministry. As application for third phase is currently available, eligible candidates can apply.
Visit official portal of PMAY
Applicants firstly have to visit the official website of the Ministry i.e. http://pmaymis.gov.in. Once you will open the website, homepage will appear on the website
Select the Citizen Assessment link
On the homepage of the website, you have to click on the “Citizen Assessment”. You have to select the relevant option from “for slum dwellers” and “benefits under other 3 components”.
– for slum dwellers
– for benefits under other 3 components
Enter Aadhar Number
On selecting the relevant option, you will be redirected to the Check Aadhar No. Existence page where you have to enter your Aadhar No. in the space provided.
Fill required details
You will be redirected to the application page. Here you have to fill all the details such as name of the beneficiary, contact details, all personal details, income details, bank account and all the other required information.
Save the PMAY application
Once you have filled all the details in the form, you have to mark the disclaimer, enter the captcha code and click on save option. Application is complete and you can take a printout of the filled in application form.
Benefits Of PM Awas Yojana:
1. Large subsidy for every citizen
- For those who fall under the EWS/LIG category, home loan interest rates are subsidised by 6.5% for a tenor of 20 years.
- For those who fall under the mid-level MIG category, the home loan interest rate is subsidised by 4% on a maximum loan amount of Rs.9 lakh for a tenor of 20 years.
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For those who fall under the MIG 2 category, the home loan interest rate is subsidised by 3% on a maximum principal amount of Rs.12 lakh for a tenor of 20 years.
2. Housing for all strata of society
Under the PMAY scheme, the government seeks to construct 2 crore affordable houses in prominent urban areas for those who are eligible to avail the scheme. The construction of these homes has already begun in states such as Maharashtra, West Bengal, Tamil Nadu, etc. Through these houses, the government will be able to uplift the standard of living for many.
3. Housing development in every corner of the country
The PMAY scheme is not restricted only to the urban areas; equal importance is also being given to the rural development of low- and middle-income groups. In rural areas, apart from raising the standard of living for low-income group individuals, the schemes undertaken by Pradhan Mantri Awas Yojana guarantee development in the rural real estate sector and associated industries.
4. Benefits for women and minorities
PMAY makes female homeownership a mandatory clause and mentions the house should be registered in a women’s name even in cases when she is not buying the property. Additionally, preference provisions exist for salaried women, widows, transgender people, the disabled, minorities and seniors to avail the Pradhan Mantri Awas Yojana scheme and become homeowners. In case you buy a home under this scheme as a senior citizen, you can be assured of ground floor accommodation since the scheme has specially added this as a mandatory clause to allow senior citizens more comfort.
5. Benefit from eco-friendly homes
The developers have been instructed to build houses using eco-friendly construction technology and materials under this scheme. This will ensure limited damage on the environment in and around construction sites and will lower pollution scales by keeping it under check too.
With the knowledge of these PMAY benefits, you can now check the Pradhan Mantri Awas Yojana eligibility criteria to see whether you qualify as a contender. Once you know you are eligible, you can then apply for a Home Loan under PMAY with lenders like Bajaj Finserv. This will allow you to avail the benefits of PMAY scheme along with the flexible terms of repayment, thereby adding affordability to your home purchase
