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Plan your housing needs under Pradhan Mantri Awas Yojana (PMAY)

Are you looking to buy your own home? Wait and look out for the benefits which Pradhan Mantri Awas Yojana has for all its income level groups of customers.

Introduced on 25 June 2015, Pradhan Mantri Awas Yojana aims towards catering the ever increasing demands of housing in urban regions. Under the scheme of Housing for All by 2022 scheme, the Government plans to pursue the construction of 20 million(2 crores) homes in the urban areas of India. Out of 20 million homes, about 18 million will be constructed in order to fulfill the requirements of slum households which is growing at a decadal growth rate of 34%. The remaining 2 million homes will be offered to non-slum urban poor.

As per the current estimates, the urban population of India constitutes of about 414 million which is set to witness an exceptional growth in the coming years. By the year 2050, it is expected to reach up to 814 million people, a rise in about 400 million from existing levels. The basic facilities covered under this scheme would be affordable housing, sanitation, infrastructure and a secured environment are the biggest challenges for the India's well-wishers , also known as the Government of India. In the current scenario, the housing development in the cities is being dominated by the private real estate developers who determines the areas and the housing cost for the final consumers. This is the actual reason why the real estate prices have risen drastically over the past couple of decades leaving the common man with only dreaming of owning a house.

Pradhan Mantri Awas Yojana (pmay) – Housing for all by 2022

Under the guidelines for the Pradhan Mantri Awas Yojana , the main emphasis has been laid out to construct 20 million homes for those people who belong from the Lower Income Families and Economically Weaker Sections Group in the identified urban and semi-urban areas by 2022. The Central Government has already aimed for the subsidy of ₹ 2 lakhs crores for this scheme. Housing for all by 2022 has primarily four classifications as :

Building or improvement of the houses led by the legatee

Affordable housing prices via Credit Linked Grant

In-Situ Slum Redevelopment with active private sector participation employing land as a resource

Reasonable housing associated with private and government funding

According to these components, government subsidy will be for an amount between ₹ 1 lakh and ₹ 2.30 lakhs depending on the beneficiary's eligibility.

Out of the 4 components discussed above, Credit linked subsidy component will be enacted as a Central Sector Scheme while remaining three components will be executed as a Centrally Sponsored Scheme(CSS).

The complete urban area comprising of 4041 statutory towns will be enclosed under the scheme with a primary focus on 500 Class I cities in three phases. Credit linked subsidy component of the scheme would be administered across the country in all statutory towns starting from the beginning itself.

Phase 1 : Under the Phase-I, housing units are mandated to be developed in the chosen 100 cities in the period from April 2015 to March 2017.

Phase 2: The next phase will enclose about 200 cities for housing development between April 2017 and March 2019.

Phase 3 : The last phase of Pradhan Mantri Awas Yojana will be administered in the remaining cities between April 2019 and March 2022.

The government will provide flexibility to the state UT/governments for deciding the best component out of the four to achieve the mission in time and fulfill the housing demands. The constitution and acceptability of the housing projects under PMAY will be done by the state/UT governments itself in order to administer the scheme faster.

After going through above details, you can easily plan out the loan amount for which you can keep aside towards deployment of constructing your own home. Not only the loan amount, you can look for having a pucca home within the duration of availing homes covered under PMAY.

PMAY Eligibility

The applicants should be a first time home buyer. In other words, a beneficiary(an interested individual or his/her family member) should not own a pucca house.

The applicants belonging to LIG(Lower Income Group) and Economically Weaker Section(EWS) group are eligible for PMAY scheme. The classification of income should be as under:

EWS-The annual income should not go beyond ₹ 3 lakhs p.a

LIG -The annual income should not go beyond ₹ 6 lakhs p.a

Awas Yojana -Carpet Area

The construction for carpet area homes would be as under:

The carpet area for economically weaker section (EWA) applicants should be 30 square metres.

The carpet area for lower-income group applicants should be 60 square metres.

PMAY Documents

1. Application form duly completed with all entries

2. Self-Affidavit Income Certificate (only if the income is below taxable limit)

3. Unique Identification - PAN Card / Aadhar No. / Voter's Card/ Driving License/ MNREGA No./ Any Other Number or A Certificate of house ownership from Revenue Authority of Beneficiary's Native District, etc.

4. Nationality Identification Proof

5. Proof of category (belonging to SC/ST/OBC/Minority etc.)

6. Copy of Address Proof

7. Income Proof - Original Salary Slip/ Salary Certificate/ Other income.

8. Latest I.T. Return/ I.T. Assessment Order/Form No. 16 if applicable

9. Statement of Bank Accounts - last 6 months

10. A brief note on the nature of business/ activity/ self-drawn attested financial statement/ business license in case of self-employed.

11. Valuation certificate from the approved Valuer, if not valued earlier.

12. The approved plan of Construction.

13. Architects/Engineers Certificate confirming the cost of construction/ cost of repairs/ Cost of improvements/ cost of Extension.

14. Architects Certificate confirming expected life, fitness, and future of Flat/ House in the case of purchase.

15. Agreement for construction with Builder/ Developer

16. NOC from Housing Society/ Competent Authority

17. Affidavit from beneficiary or an authorized area construction dealer

18. Letter of Allotment of Property

Author Bio: Shefali Sinha is a financial writer endowed with writing articles from all segments including personal loans, home loans, car loans and mutual funds. Her every article covers the general insights which every customer needs to acquaint with. Her recent article is PMAY, where every income-group customer can connect with their dreams of having a home into reality.

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I am Anvi Sharma, working with Finance Sector as Financial Writer and I like to write informative blogs about various Personal Loan, Home Loan, Car Loan, Investment, Credit Cards & Mutual Funds.

Stories by Anvi Sharma