PMAY Manual

The aim of Prime Minister Narendra Modi to provide homes for everyone not only inspired confidence in those who had shied away from real estate investment due to high expenses, but it also inspired builders and developers.

Pradhan Mantri Awas Yojana (PMAY) policy, which was introduced on June 1, 2015, aimed to provide urban and rural poor people with pucca affordable housing choices. The program included a wide range of incentive offers for developers in an effort to encourage the effective construction of affordable housing and assist them in overcoming financial concerns.

The ambitious project comprises numerous strategies and plans for the benefit of all stakeholders concerned.

Let’s dive to learn more about the scheme’s key components and how it will benefit homebuyers and the real estate sector.

PMAY is a Central Government effort to provide affordable housing choices for Lower Income Groups (LIG) and Economically Weaker Sections (EWS). The program was initially launched exclusively for homebuyers in the LIG and EWS, but it has since been expanded to include customers in the Middle-Income Group (MIG).

In order to expedite completion, the massive project has been separated into two parts: PMAY-Urban and PMAY-Gramin.

Under PMAY-Urban, overcrowded slums are the main focus. There, temporary housing units will be replaced with pucca or permanent homes and supplied to slum residents as well as other groups from the LIG, EWS, and MIG segments. The PMAY-Garmin program includes rural communities. Those who rent an apartment or have a home they are building can apply for this program.

Basically, the PMAY programme has two essential components: First, it will provide LIG, EWS, and MIG segments with reasonably priced permanent homes. Second, it has implemented the Credit Linked Subsidy Scheme (CLSS) on loans obtained for building new structures, upgrading existing house.  

• A pucca house cannot be owned by the beneficiary or anybody associated with him or her in any region of India.

• If a married couple owns a home together, only one of them will be eligible for a single subsidy, whether it be the spouse or both of them.

• The recipient should not have previously received any benefits under PMAY or central aid under any housing programme run by the government.

• The goal is to provide homes for everyone by 2022. Additionally, it strives to provide homes for certain groups, such as women, economically challenged individuals, and members of minorities, including Scheduled Castes and Scheduled Tribes.

• For the benefit of India’s urban poor, cheap homes will be built in a few selected cities and towns utilising eco-friendly construction techniques. If beneficiaries of the PM Awas Yojana use a loan to purchase or construct a home, they are also eligible for interest subsidies under the Credit Linked Subsidy Scheme.

• A beneficiary family will consist of the wife, husband, and any unmarried sons, daughters, or both.

• A beneficiary family is not permitted to own a pucca house in any region of the country, either in their own name or on behalf of a member of their family (India).

• Every beneficiary of the PMAY Scheme would receive a subsidised interest rate on housing loans for a 20-year period of 6.50% p.a.

• Senior citizens and people with disabilities shall be given preference in the partition of ground floors.

• Construction would be done with environmentally friendly and secure technology.

• The plan includes all urban areas throughout the nation, including 4041 legislative towns, with 500 Class I cities receiving top consideration. Three steps will be taken to complete that.

• The credit-linked subsidy component of the PM Awas Yojana is implemented in India from the very beginning in all legislative towns.

The housing scheme is divided into two parts: PMAY (Gramin) and PMAY (Urban).

under PMAY Rural The government set a goal to build four crore affordable homes in rural areas of the country by 2022 under PMAY (Gramin) or PMAY (Rural). Beneficiaries would be chosen from a list provided by the 2011 Socio-Economic Caste Census.

The central and state governments would split the cost of the residential unit. The financial aid would be distributed 60:40 in plain areas and 90:10 in northeastern and hilly states

All plain areas would receive a total of Rs 1.2 lakh in cash assistance, while hilly areas will receive Rs 1.3 lakh. To include a dedicated cooking space, the unit’s size has been raised to 25 square meters. The unit’s previous size was 20 square meters.

There is also the option of a home loan. A loan of up to Rs 70,000 can be easily obtained by the chosen beneficiary for the building of the home. Homebuyers who participate in the housing program may be eligible for a loan of up to Rs 2 lakh for home upkeep or improvement. Such housing loans will receive a 3% interest subsidy. Recently, it has been suggested to increase the subsidy rate for physically disabled people to 5%.

In accordance with PMAY, the government approved almost 39 lakh dwellings for the fiscal year (FY) 2016–17. (Gramin). A total of 19 lakh dwellings have been built from that. About 24 lakh dwellings were sanctioned by the Center during FY 2017–18. of which somewhat more than 7 lakh dwellings have been built.

PMAY (Urban) has been implemented in order to give people, particularly slum residents, who live in urban centres around the country an affordable housing solution. By 2022, up to 18 million slum houses are anticipated to be needed, as has been noted. To satisfy the predicted housing demand, the initiative plans to create around 20 million affordable houses.

There are four subcategories within the PMAY program for urban areas:

• Rehabilitation of slum inhabitants with the cooperation of private developers using land as a resource
• Promotion of affordable housing for the poorer sections through credit-linked subsidies
• Assistance with affordable housing in collaboration with the public and private sectors
• Financial support for beneficiary-driven individual home improvement

The beneficiary family must not be the owner of a pucca house in his or her name or in the name of any member of their family in any region of India in order to qualify for financial assistance from the government under the PMAY (Urban) plan.

The government decided to build affordable housing in around 500 Class 1 cities across the country. The construction of homes will take place in three phases:

• Phase I (April 2015 – March 2017) – 100 cities chosen from States/UTs are included.
• Phase II (April 2017 – March 2019) – more than 200 cities are included.
• Cover all remaining cities in Phase III (April 2019–March 2022).

The PMAY-G list for 2021–22 can be downloaded in PDF format by following the steps listed below.

• Go to the “Awaassoft” section of the official PMAY-G website, playing.nic.in, and click the “Report” tab.

• List of PMAYs
• A new window containing the “Social Audit Reports” section must be chosen after clicking “Report.” The “Beneficiary information for Verification” option must be chosen.
• Check and save the PMAY Gramin List.
• You must fill out the required fields in the “Selection Filters” before moving on to the next step.
• First, select the year for which they want to review the PM Awas Yojana Gramin list (for example, 2021–2022). (PMAY LIST 2021-22).
• Choosing “Pradhan Mantri Awaas Yojana Gramin” is the second choice.
• After that, select the third option, “Name of State.”
• Select the fourth option, “District,” to continue.
• Select “Block” under the fifth choice.
• The sixth option is the “Panchayat” name, which you must select.
• You may get the Pradhan Mantri Awas Yojana Gramin list of recipients by clicking “Submit” here (PMAY-G List 2021-22).
• The village name, registration number, beneficiary name, beneficiary’s father or mother’s name, the name assigned to the house, the sanction number, the sanctioned amount, the installment paid, the amount made available through the PMAYG program, and the status of the house on the PMAYG list of beneficiaries can all be found in this step.

Here is a list of steps you can take to check if your name is on the PMAY List 2022–23 if you registered under PMAY Gramin 2022–23.

• Visit https://pmaymis.gov.in/ to access the PM Awas Yojana-Gramin website.
• Select the “Stakeholders” option from the menu.
• It is necessary to click on “Indira Awas Yojana (IAY)/PMAYG Beneficiary.”
• You can search for your name on the Pradhan Mantri Awas Yojana Gramin list here using one of two methods:
• 2022–2023 PMAY Gramin List
• With Registration Number: If your name appears on the list after entering your registration number in the required field and clicking “Submit,” the pertinent information will be displayed on your screen.
• Without a Registration Number: If you don’t have a Registration Number, select the second option, “Advanced Search.” Please provide the requested information, such as the State, District, Block, Panchayat, etc. The computer will then ask you for:
• Name, BPL Number, Account Number; Sanction Order; Father or Husband’s Name
• After entering all the required data, click “Search” and check for your name in the list of results.

The Pradhan Mantri Awas Yojana 2021–22 can be split into two parts based on the regions they serve.

Pradhan Mantri Awas Yojana Gramin (PMAY-G): This program aims to provide low-cost housing options for those living in rural parts of India (Except Delhi and Chandigarh). The cost of affordable housing units is divided 60:40 by the Union Government and the State Governments under the Pradhan Mantri Awas Yojana Gramin cost-sharing program. The cost of affordable housing under the PMAY Gramin program is split 90:10 into the North-eastern States.

Pradhan Mantri Awas Yojana Urban (PMAY-U): The Pradhan Mantri Awas Yojana Urban (PMAY-U) initiative aims to provide affordable housing units in India’s urban districts. There are currently over 4300 municipalities participating in the program. The Pradhan Mantri Awas Yojana Urban is now being conducted in three phases, and they are as follows:

• Phase 1: The Pradhan Mantri Awas Yojana Urban Phase 1 program covered more than 100 cities from various States and Union territories. The initial phase of Pradhan Mantri Awas Yojana Urban was completed between April 2015 and March 2017.
• Phase 2: Between April 2017 and March 2019, Pradhan Mantri Awas Yojana Urban’s second phase expanded to more than 200 additional cities spread across a number of States and union territories.
• Phase 3: The Pradhan Mantri Awas Yojana Urban’s Phase 3 focuses on the cities that weren’t covered by the program’s Phases 1 and 2. The Union Government plans to complete the Pradhan Mantri Awas Yojana Urban phase 3 implementation by March 2022.

To qualify for the Credit Linked Subsidy Scheme (CLSS) under PMAY 2022, which provides a subsidy on the interest on home loans, the applicant must meet the following income conditions.

For the Lower Income Group (LIG)/Economically Weaker (EWS) segment

• the family may consist of the husband, wife, unmarried daughters, and unmarried sons.
• The annual household income must range from Rs. 3 lakh (for LIG) to Rs. 5 lakh (for MIG).
• The maximum amount of the subsidy is Rs. 6 lakh. After this, standard home loan interest rates will take effect.
• One of the property’s co-owners must be a female.

For Middle-Income Groups I and II

• The yearly income threshold for MIG I is between Rs. 6 lakh and Rs. 12 lakh. The annual income must be between Rs. 12 lakh and Rs. 18 lakh for the MIG II income group.
• If there is a female co-owner of the designated property, that co-owner will be given preference
• If there is an adult member who makes money, that member will different treated.

As the PMAY scheme was established to help the less fortunate obtain suitable accommodation. The Union government is subsidizing the mortgage taken out to buy the property. A user can check the beneficiary-specific money released under the PMAY using the following processes.

• As a first step, go to the official PMAY website at https://pmaymis.gov.in/default.aspx.
• On the home page, click Search Beneficiary.
• From the menu, choose “Beneficiary Wise Funds Released.”
• When requested, enter the registered mobile number.
• Check Beneficiary-Wise Funds Released under PMAY
• After clicking “Get OTP,” enter the received OTP.

The recipient status of funds distributed in the form of Central aid, State Share, and ULB share will be displayed on a screen after the necessary information has been entered.

When your PMAY subsidy application is granted, the central nodal agency (CNA), which is also known as a premier lending institution (PLI) in official paperwork, transfers monies to the bank that the recipient used to obtain his home loan. The borrower’s home loan account will then receive credit for this sum from the bank. The main balance of your outstanding home loan will then be reduced by this sum. Therefore, if you received a PMAY subsidy of Rs. 2 lakh and your outstanding loan balance is Rs. 30 lakh, the subsidy will cause the balance to drop to Rs. 28 lakh.

Any bank or NBFC can offer subsidized house loans, but these organizations must be approved by the Ministry of Housing and Urban Affairs. A list of financial firms that provide PMAY housing loans is provided below:

Public Sector Banks offering PMAY Home Loan

• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• IDBI Bank Ltd.
• Indian Bank
• Indian Overseas Bank
• Punjab & Sind Bank
• Punjab National Bank
• State Bank of India
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

Private Sector Banks offering PMAY Home Loan

• Axis Bank Ltd.
• Bandhan Bank Ltd.
• Catholic Syrian Bank
• City Union Bank
• DCB Bank Ltd.
• Dhanlaxmi Bank Ltd.
• ICICI Bank Ltd.
• IDFC Bank Ltd.
• J&K Bank
• Karnataka Bank Ltd.
• Karur Vysya Bank Ltd.
• Kotak Mahindra Bank Ltd.
• Lakshmi Vilas Bank
• Nanital Bank Ltd.
• SBM Bank (Mauritius) Ltd.
• South Indian Bank Ltd.
• Tamilnad Mercantile Bank Ltd.
• The Federal Bank Ltd.
• Yes Bank

There are also many regional rural banks, co-operative banks, housing finance companies and small finance banks which offer PMAY home loans.

In order to provide home loans under several verticals of the PMAY, a large number of banks, housing finance companies, regional rural banks, cooperative banks, and non-banking finance companies (NFCs) have partnered with the central nodal agencies, HUDCO, SBI, and NHB. These financial institutions, which are officially referred to as the primary lending institutions (PLIs) under the official PMAY documentation, are as numerous as 244 according to official figures provided in 2017. They also provide individual home buyers with the credit-linked subsidy, among other loans under the programme. The top state-run and commercial lenders providing credit subsidies on home loans under the PMAY scheme are listed below.

1. What is Pradhan Mantri Awas Yojana?

On June 25, 2015, the Pradhan Mantri Awas Yojana (Urban) was introduced with the goal of providing pucca houses to all eligible persons by 2022 in urban areas.

2. What is CLSS (Credit Linked Subsidy Scheme)?

The Credit Linked Subsidy Scheme (CLSS) for Middle-Income Groups (MIG), MIG I, and MIG II, was first approved for introduction in 2017. The programme was first extended through March 2020, and on May 14, 2020, the government announced a second one-year extension of the CLSS deadline for affordable housing, bringing it forward to March 2021.

3. Who is eligible for the PMAY scheme?

The main objective of the plan is to provide housing for everyone. Therefore, it seems sense that everyone who already owns a home or who has a family member who owns a property is excluded from the benefits of PMAY. According to the regulation, “The recipient family should not own a pucca house and the beneficiary family should not have availed central assistance under any housing scheme from Government of India.” A beneficiary family consists of a husband, a wife, and any unmarried sons or daughters.

4. How does the scheme operate?

For example, a person in the LIG category wishes to purchase a Rs. 15 lakh property. After making the required minimum 20% down payment, or Rs. 3 lakh, the remaining Rs. 12 lakh can be arranged through a loan. However, under PMAY, a 6.5 percent subsidy was only available up to Rs 6 lakh; as a result, the lender’s house loan interest rate will apply to the remaining Rs 6 lakh.

5. What exactly is a carpet area?

The actual carpet area is the space bounded by the walls. The inner walls’ thickness is not included in this area.

6. How much carpet area would you receive under the plan?

The size of the house under PMAY-CLSS varies depending on the category. For homes eligible for interest subsidies under the CLSS, the carpet area is 30 square metres for EWS homes and 60 square metres for LIG homes. The carpet space for MIG under PMAY (Urban) was up to 200 square metres for MIG II and up to 160 square metres for MIG I.

7. Is it possible for a beneficiary to use the benefit for more than one component?

No. A participant of the PMAY programme is only eligible to receive benefits from one component.

8. Will a person with a plot but no construction be eligible for benefits?

If the beneficiary meets the requirements of the scheme, then yes, they may be covered by the subsidy for beneficiary-led individual dwelling development.