Pradhan Mantri Awas Yojana (PMAY) is one of the major schemes of the government, Which is the Credit Linked Subsidy Scheme (CLSS) and is categorized as urban and rural-based on annual income level to provide applicable benefits of subsidy on interest rates on home loans. It was launched by Prime Minister Narendra Modi on 25 June 2015 aims to ensure “Housing for all by 2022”. The scheme is aimed at achieving the government’s objective of housing for all. Characteristics of this scheme are:
- Only those people can apply for this scheme whose annual income does not exceed Rs 18 lakh per annum.
- The government had set a target of constructing 1.12 crore houses in the country’s urban areas over seven years from 2015 to 2022.
- India’s government initiative to provide interest subsidy on housing loans for the Economically Weaker Section (EWS). ) or Low Income Group (LIG), for the acquisition and construction of a house.
- For the Middle Income Group (MIG), the interest subsidy provided on housing loans to acquire or construct houses, including repurchase.
- The interest subsidy upfront on the outstanding principal. It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awas Yojana (Gramin) for the rural poor (PMAY-G and PMAY-R).
- Under the scheme, middle-income homebuyers with an annual income of Rs 6-18 lakhs can avail of the benefit of subsidized interest on their home loans.
- The rental housing scheme under PMAY offered a business opportunity to the private sector, to build more rental housing.
- Eco-friendly and sustainable technologies will be used for construction.
- More than 50 lakh houses are sanctioned solely in the name of female beneficiaries.
- More than 80 lakh houses are sanctioned jointly in the name of husband and wife.
- From 1st April 2021, Middle Income Group (MIG) means those earning individuals who have an annual income of Rs 6 lakh to Rs 18 lakh, they are no more eligible for a subsidy of up to Rs 2.35 lakh under PMAY scheme. However, the PMAY subsidy of up to Rs 2.67 lakh for LIG (Lower Income Group) and EWS (Economically Weaker Section) would continue till 31st March 2022.
# What is Pradhan Mantri Awas Yojana women
Pradhan Mantri Awas Yojana (PMAY) will be provided to women in cities as well as villages, which are designed to encourage homeownership among women. As per the PMAY guidelines, the government has made it necessary for a family to register at least one female member as a new house owner under the flagship housing program. In addition, women borrowers, like their male counterparts, can avail of interest rate relaxation on home loans under PMAY, which is now linked to the Credit-Linked Subsidy Scheme (CLSS).
CLSS allows women borrowers to avail interest subsidies on their home loans. The benefits of CLSS are divided into four sections which are described below.
1. Economically Weaker Section (EWS),
2. Low Income Group (LIG),
3. Middle Income Group – 1 (MIG-I),
4. Middle Income Group-2 (MIG-II)
Women get more benefits than men under this scheme. The government will give a subsidy of up to 2.67 lakh to the female applicant. However, a condition has been laid for this that it should be the first house of the applicant’s woman. That is, the benefit of the scheme is given only after buying the first house. Special priority given to women under PMAY to ensure there is a roof over their heads.
# How does PMAY help women?
With the help of this plan, you can get a house on a very low budget. Additionally-
- Women borrowers get special interest rates and benefits under PMAY.
- Many banks offer additional discounts and benefits for women borrowers.
- A simple and easy process to apply for a house under the PMAY scheme has been prepared by the Ministry of Housing and Urban Development.
- The form only needs to be filled by the borrowers with the required details.
# Benefits of PMAY for women
Here are some benefits of PMAY for women-
- Housing loans for women are available at the rate of 8.25% p.a.
- Under this scheme, the EMI for a housing loan of Rs 1 lakh will be Rs 853.
- This scheme can be availed for a period of up to 30 years
- Loan up to Rs 12 lakh can be taken under this scheme
- There is no prepayment fee under this plan
- In this scheme, the interest is calculated on the daily reducing balance
The income criteria for different household categories are defined as follows:
|Maximum Annual Income of the Applicant (Annual earning)||Upto Rs. 3 Lakh||₹ 3 Lakh -₹ 6 Lakh||₹ 6 Lakh – ₹ 12 Lakh||₹ 12 Lakh- ₹ 18 Lakh|
|Maximum Home Loan Amount||Rs. 6 Lakh||Rs. 6 Lakh||Rs. 9 Lakh||Rs. 12 Lakh|
|Maximum Interest Subsidy amount||Rs. 2.67 Lakh||Rs. 2.67 Lakh||Rs. 2.35 Lakh||Rs. 2.30 Lakh|
|PMAY Carpet area (Max)||30 sq. m.||60 sq. m.||160 sq. m.||200 sq. m.|
Economically Weaker Section (EWS): This category is very beneficial for women as women borrowers falling under EWS and LIG can avail interest subsidy of 6.5 percent on home loans up to Rs.6 lakh. Also, normal interest rates will be applicable in addition to the said portion of the loan.
Middle Income Group (MIG) – MIG-I borrowers can avail an interest subsidy of 4 percent on home loans up to Rs 9 lakh, and those availing of the scheme under MIG-II are likely to enjoy a subsidy of 3 percent on loans up to Rs 12.
# What are the documents required to apply for the PMAY subsidy scheme?
Following documents are required to avail the benefits of Pradhan Mantri Awas Yojana :
- Age Proof Document – Copy of your Passport / Driving License / Life Insurance Policy / Birth Certificate / PAN Card / School Leaving Certificate
- Affidavit cum declaration which proves that the beneficiary family does not have a pucca house
- Declaration for under-construction property, if applicable – Construction agreement with the developer or builder, Valuation certificate for the property you wish to buy, Receipt of advance payment for the property you wish to buy
- Identity Proof Document – Aadhar Card / PAN Card / Driving License / Voter ID Card
- Copy of Address Proof – Bank Statement/Property Registration Document/Property Tax Receipt/Voter ID Card
- Salary proof document (for each earning member of the household) – a copy of the last three months salary slip/appointment letter / annual increment letter / attested true copy of Form 16
- Income proof document – a copy of your salary account bank details for the last six months
- Existing loan details – to be provided through bank details
- Processing Fee Check – To be issued from Salary Account of Salaried Customers or Business Account of Self Employed Customers
- No Objection Certificates (NOC) from Competent Authority or any housing society
# How to apply for PMAY Online?
To apply online for Pradhan Mantri Awas Yojana follow below steps:
- Identify the category under which you qualify for PMAY
- After that log on to the official website http://pmaymis.gov.in/
- Click on ‘Citizen Assessment’ under the main menu
- Click on ‘Benefits under the 3 components’
- Enter your Aadhaar details ( Aadhaar Number without spaces in the provided box and click ‘check’
- Upon entering the correct Aadhaar Number, you will fill the online PMAY application with your personal, income, and bank account details, and current residential address.
- Enter the captcha code,
- Verify the details for accuracy and click on ‘Save button.
# Pradhan Mantri Awas Yojana Gramin
Features & Benefits
The main benefits of PMAY Gramin scheme are:
- It promotes housing facilities in all rural areas in India except Delhi and Chandigarh.
- The main objective of this scheme is to assist the applicants in constructing a pucca house.
- This scheme aims to construct 1 crore houses for the rural poor by 2022.
- The budget for this scheme is ₹ 81,975 crore.
This scheme does not apply to people living in Delhi and Chandigarh:
- For people living in plain and hilly areas, they will be given an allowance of ₹ 1,20,000 and ₹ 1,30,000 respectively.
- The unit size of the house can be up to 25 sq meters which will also include a dedicated cooking area.
- A loan amount of up to ₹ 70,000 is available to the beneficiary for construction of the house, which is optional.
Beneficiary List for PMAY Gramin
Beneficiaries of this PMAY scheme will be identified as per data available from the Socio-Economic and Caste Census (SECC) and include –
- Scheduled castes and scheduled tribes.
- Non-SC/ST and minorities under BPL.
- Freed bonded labourers.
- Widows and next of kin of paramilitary forces and individuals killed in action, ex-servicemen, and those under a retirement scheme.
Documents required for PM Gramin Awas Yojana
- Form: Application form duly signed.
- ID proof: PAN Card, Voter ID, Driving License, Aadhaar Card, etc.
- Address Proof: Voter Card, Passport, Aadhaar Card, latest utility bill or rent agreement
- Income proof:
In case of salaried employee – 6 months’ salary slip, latest form 16 or bank statements of last 6 months.
In case of self-employed – IT Returns along with computation for the last 2 financial years, Balance Sheet and Profit & Loss Account.
Frequently Asked Questions(FAQs)
# What will be the Rebate offered in interest by banks?
Most of the banks in India offer concessional interest rates to women home buyers to spend on the property. Many banks offer special home loan rates to women borrowers. Rates vary by profession and the amount of finance applied by these borrowers. You would also like to know, that female borrowers can get an average 0.05% discount in interest rate as compared to their male counterparts.
# Is Partial exemption of stamp duty available?
Some state governments in India additionally provide partial exemption on stamp duty for buyers registering property in the name of a woman, either as a sole proprietor or joint proprietor. This exemption varies from around 1 to 2% on stamp liability if the property is in the name of a woman.
# What are the tax benefits of buying a house in the name of a woman?
If you are thinking of buying a house in a woman’s name, you too can take advantage of some of its tax benefits. For example, if the house is self-occupied, an interest deduction of up to Rs 2 lakh is included in each financial year. If the husband and wife are joint owners of a property and the wife has a different income source, both can claim separate tax deductions. But the deduction will depend on the ownership share of each co-owner.
# What is the exception in women’s ownership of property in the EWS/LIG scheme?
Adult female membership is required in the property structure. In the absence of an adult female member in the family, the property can be registered in the name of only one male member.
# What is the definition of family/beneficiary family for EWS/LIG and MIG?
For EWS/LIG – Husband, wife, and unmarried children constitute the family/beneficiary family
For MIG – Husband, Wife and Unmarried Children, An adult earning member (considered as a detached household irrespective of marital status).
# How will the subsidy amount be decided i.e. the loan amount will decrease or the tenure?
The subsidy amount will not be adjusted against tenure. The effect of subsidy will be adjusted against the principal amount only, further affecting the EMI amount.
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