PradhanMantri Aawas Yojana 2021- Everything you need to know

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The Pradhanmantri Aawas Yojna (PMAY) was implemented by the Ministry of Housing and Urban Affairs to address the urgent shortage of urban housing among Economic Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG). 

The mission was launched on June 25, 2015, and it intends to provide housing for all, including the slum dwellers in urban areas by the year 2022. If you are looking for a flat in Kolkata, knowing the particulars of the scheme is vital. So, let’s dig right into it.

The Eligibility criteria for PMAY 

As part of the mission, the Pradhanmantri Aawas Yojna provides a credit-linked subsidy scheme. This partly helps you to fund your home purchase. 

The first scheme covers the Economically Weaker Sections (EWS) and those under the Low-Income Group (LIG). The second credit-linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) is known as CLSS for MIG I and MIG II. 

Particulars for EWS and LIG

• Through the scheme, you can acquire a flat in Kolkata or construct residential units in the 4,041 statutory towns as listed per the 2011 census.  Additional 274 towns are separately notified by the state government.
• The maximum subsidy under this scheme is Rs 2,67,280. However, the amount can be reduced if the loan amount is less than Rs 6 lakhs. 
• You are entitled to the subsidy benefit only for loans that are disbursed on or after June 17, 2015.
• Under this scheme, the house to be constructed or acquired should have woman ownership (i.e. it should be in the name of the female head of the household) or it should have co-ownership (i.e. in the joint name of the male head of the household and his wife). In case, there is no adult female member in the family, it can be acquired in the name of the male head of the household.
• Annual family income should be up to Rs 3 lakhs for EWS and above Rs 3 lakhs and up to Rs 6 lakhs for LIG. 
• House area for EWS should be a carpet area of up to 30 sq metres; and a Carpet area up to 60 sq metres for LIG.
• Rate of interest subsidy for both EWS and LIG is the same i.e. 6.50% 
• Maximum loan eligible for subsidy of Rs 6 lakhs is again the same for both EWS and LIG. 
• Maximum loan tenure of 20 years is also the same for both EWS and LIG.

Particulars for MIG

• Annual family income should be between Rs 6 lakhs to Rs 12 lakhs for MIG I between Rs 12 lakhs to Rs 18 lakhs for MIG II. 
• House area of your flat at Kolkata for MIG I should be a unit carpet area of up to 160 sq metres; and a Carpet area up to 200 sq metres for MIG II.
• Rate of interest subsidy p.a. for MIG I is 4% and MIG II is 3% 
• Maximum loan housing interest subsidy is Rs 9 lakhs for both MIG I and Rs 12 lakhs for MIG II.
• Maximum loan tenure of 20 years is the same for both MIG I and MIG II.
• The woman ownership or co-ownership of the house is not mandatory for MIG I and MIG II. 

How does PMAY work?

Let’s suppose you are looking for ready to move in flats in Kolkata and you fall in the MIG II category and you intend to purchase a house that costs Rs 60 lakh. You make a mandatory minimum down payment of 20%, i.e. Rs 12 lakh. Now, the remaining balance of Rs 48 lakh can be paid off through a loan. 

However, under the Pradhanmantri Aawas Yojna, you get a subsidy of 3%. You are hence eligible for Rs 12 lakh. Now, your home loan interest rate is applicable on the balance of Rs 36 lakh.

Pradhan Mantri Awas Yojana – Urban (PMAY-U)

The Pradhan Mantri Awas Yojana – Urban (PMAY-U) is a sub-scheme under PMAY that provides assistance through central agencies of States/Union Territories (UTs) and Central Nodal Agencies (CNAs). It includes 4331 towns and cities. 

The flagship mission of PMAY-U is to provide houses to all eligible beneficiaries or families as per the validated demand for houses for about 1.12 cr. Although PMAY-U has capped the carpet area for Economically Weaker Section (EWS) at up to 30 sq. mt., States/UTs are eligible to increase the size of houses with the approval of the Ministry.

The progress so far:

• Sanctioned Houses: 114.04 Lakhs
• Completed Houses: 51.83 Lakhs 
• Grounded Houses: 88.64 Lakhs 
• Committed Central Assistance: I.85 Lakh Cr. 
• Released Central Assistance: 113179 Cr. 
• Total Investment: 7.52 Lakh Cr. 

PradhanMantri Awaas Yojana –Gramin (PMAY-G)

To address the rural housing problem, the Pradhan Mantri Awaas Yojana –Gramin (PMAY-G) was implemented in view of the Government’s commitment to provide “Housing for All’’ by 2022. Pradhan Mantri Awaas Yojana Rural or Gramin was initially called Indira Awas Yojana, however, it was renamed PMAY-G w.e.f. 1st April 2016.

The scheme intends to provide a pucca house, with basic amenities, to all homeless people, including those who are staying in kutcha and dilapidated houses.

The selection of beneficiaries is one of the most important features of PMAY-G. They are identified through the housing deprivation parameters in the Socio-Economic and Caste Census (SECC). 

As such the beneficiaries include scheduled castes and scheduled tribes, minorities under BL, free bonded labourers, people living who are houseless, or those living in 0,1 and 2 kutcha wall and kutcha roof houses.

The progress so far: 

• Sanctioned Houses: 2,08,91,387
• Completed Houses: 1,62,02,194
• Registered Houses: 2,20,07,799

Documents required for PMAY

If you intend to apply for the PMAY scheme for the purchase of your 3 bhk flat in Kolkata, below are some of the documents or details that you will need to provide, among others as stated by your bank:

• Aadhaar number
• Supporting consent document to use Aadhaar on behalf of the beneficiary
• MGNREGA-registered beneficiary job card number
• Swachh Bharat Mission (SBM) number of the beneficiary
• Bank account details

How to apply for Pradhanmantri Aawas Yojna Online?

How to apply for PMAY offline?

If you wish to apply offline, you need to fill up a form available at Common Service Centres. The price of these forms is nominal, about Rs 25 + GST. 

Use the Pradhanmantri Aawas Yojna for an affordable home

With the countdown to 2022 ticking faster than usual now, the government will need to pace up the speed of construction under the Pradhan Mantri Awas Yojna (PMAY) to achieve its 2022 Housing for All target. Furthermore, make sure you have done your research and evaluated all the options before you venture out the possibility of affordable housing for buying flats in Kolkata.