PMAY (Pradhan Mantri Awas Yojana)

October 06, 2022

The main aim of the introduction of Pradhan Mantri Awas Yojana was the unprecedented endeavor of the “Housing For All” scheme to refurbish urban areas with affordable housing by 31st March 2022. The implementation of the Pradhan Mantri Awas Yojana Home Loan scheme was carried forth in three phases starting from 1st June 2015. The goal was to honour the 150th Birth Anniversary of Bapu- Mahatma Gandhi. There are plans to build an estimated 20 million residential units throughout the country as per the PMAY home loan scheme. Moreover, there will be credit subsidies attached to the offer namely Credit Linked Subsidy Scheme for eligible receivers like EWS, LIG, and MIG categories.

Table of Contents

How To Take A Home Loan Under PMAY

Taking a home loan under PMAY is explicated through the steps provided below.

Ascertain Your Financial Situation

The first and foremost thing to consider prior to applying for a Pradhan Mantri Awas Yojana Home Loan is to check your income capacity. This is imperative as the income threshold must fall in any of the PMAY home loans categories i.e., EWS, MIG, and LIG. As per the income, the PMAY scheme depicts the carpet area that can be offered. To estimate the potential expenses along with the financial benefits, one can consider using a home loan EMI calculator. Once a ballpark figure of the amount is attained, one can attain eligibility for PMAY home loans and proceed to fill out the application form.

Submit the PMAY Application Online

Depending on user convenience, the PMAY application can be filled either online or offline. Subsequently, follow the below-mentioned steps to apply for Pradhan Mantri Home Loan through an online approach:

  • Go to the official website of PMAY, i.e. https://pmaymis.gov.in/sitemap.aspx

PMAY Home Page

  • Navigate the section ‘Citizen Assessment’ and select the category.

Pmay Website

  • Register your Aadhaar number with the registration.

Pmay

  • After aadhaar registration, hop on to the successive application details pertaining to personal and employment details.

  • Finally, click on the ‘Save’ tab to save the filled PMAY application.

Once done with filling your loan application with the necessary demographic details, proceed with the Pradhan Mantri Awas Yojana Home Loan.

Complete the PMAY Application Submission

Post completion of the PMAY application form regardless of the medium i.e., online or offline, the next step is to pay a visit to the bank branch. To avail of the PMAY home loan subsidy, fill out the interest form to the chosen bank. Provide requested documents which include proof of income, investment details, and co-applicant details together with the PMAY application.

Eligibility Criteria for Pradhan Mantri Home Loan

  • Within the MIG category, the acceptable members are parents and unmarried children. Any children with earning capacity will not be eligible as per the MIG category.
  • The applicant should not have any registered house to their name.
  • Married couples are merely entitled to a sole subsidy.
  • There shouldn’t be any previously availed scheme by the applicant and their family under the PMAY housing loan.
  • Borrowers who exploited the PMAY scheme but eventually switched their borrowing options will not be able to apply again.
  • It is important for the MIG applicants to have their Aadhaar details updated and authenticated.

Income-based PMAY Home Loans Eligibility Guidelines

The below-mentioned points are some eligibility guidelines that must be followed for PMAY Home Loans:

EWS and LIG

As part of the eligible income of the family parameter, the applicant must have the below-mentioned household income on a yearly basis:

  • The income restriction for EWS category will be till INR 3,00,000.
  • The income range for LIG category must fall within the range of INR 3,00,000 to INR 6,00,000.

It has been mandated for women to become an owner or co-owner to avail Pradhan Mantri Awas Yojana Home Loan. It wouldn’t matter if one is making a new house purchase or merely renovating the current house, any female family member has to be the owner or co-owner of the property. This condition has been exempted from the cases where a PMAY loan is availed for the construction of a new project or renovation of an old house. Furthermore, only if there is an absence of a female member within the family that an adult male can be the sole owner.

At max, you can get the following carpet area under the EWS and LIG scheme:

  • The maximum carpet area is restricted to 30 sq. meters as per the EWS scheme.
  • The maximum carpet area is restricted to 60 sq. meters as per the LIG scheme.

MIG I and MIG II

Under the MIG I and MIG II, the eligible income of the family must fall within the range of

  • For the MIG-I category, it should be between INR 6 lakh to INR 12 lakh
  • For the MIG-II category, it should be between INR 12 lakh to INR 18 lakh

To avail of the benefits of the MIG I and MIG II category having woman ownership is not mandatory.

The maximum carpet area which you can get under these two schemes are

  • For the MIG-I scheme, you can get 160 sq. meters.
  • For the MIG-II scheme, you can get 200 sq. meters.

What is a Credit Linked Subsidy Scheme (CLSS)?

Under a Credit Linked Subsidy Scheme (CLSS), low and middle-income families can apply for a housing loan at decreased monthly installments. This scheme was a part of the government’s effort in balancing the real estate purchasing power of financially disadvantaged communities residing in urban areas. CLSS is a component of the PMAY scheme focused on creating an ecosystem where affordable housing is enriched. To be eligible for CLSS benefits, one has to fall in the category of the marginalized section with an annual income ranging from INR 3 Lakhs to INR 18 Lakhs. The scheme can be availed by getting in touch with any financial institution registered under the PMAY subsidy scheme.

Process for Claiming Benefits of PMAY Interest Subsidy

There are two nodal agencies that operate under the PMAY home loan scheme where interest subsidy is moderated. This includes the Housing and Urban Development Corporation (HUDCO) and NHB. These central government institutions have the task of moderating the assistance with respect to the pre-listed banks and NBFCs. Furthermore, the benefits receivable are smoothened holistically.

Claim the Pradhan Mantri Home Loan Interest Subsidy Benefit with the following steps:

  • After the allocation of the home loan, the lender sends the essential details of the borrower to NHB (National Housing Bank). It is done to perform data validation along with other checks.
  • Post-verification, NHB acknowledges the subsidy only to eligible borrowers.
  • The subsidy amount is allocated to the banks based on the eligible borrowers.
  • After collecting the subsidy amount sanctioned by the NHB, lenders go further with the procedure. The same amount is credited within the specific home loan accounts. Further, the amount is adjusted in the sanctioned loan accordingly.

Features and Benefits Pradhan Mantri Awas Yojana

  • The interest rate offered under the PMAY home loans is 6.50% per annum on a home loan. This capital is deployed for a duration of a maximum of 20 years. The subsidiary rate of interest goes the same for all PMAY applicants.
  • There is a special privilege for senior citizens and individuals that are differently abled. They are considered the first priority in terms of application processing.
  • The involvement of sustainable and eco-friendly practices is central to the construction of housing units.
  • The scheme encloses whole urban areas across the country, including 4041 statutory towns. The priority is given to the covered 500 Class I cities. The entire procedure will be carried out in three phases.
  • The credit-linked subsidy or CLSS itself gets implemented for all statutory towns (from an early stage).

PMAY schemes are segregated mainly into a couple of subcategories. These are EWS/LIS and MIG I and MIG II categories.

Features and Benefits of the EWS/LIG category

EWS categories are restricted to INR 3,00,000 per annum income whereas LIG categories range within INR 3,00,000 and INR 6,00,000 per annum. The maximum carpet area alloted to these categories are 30 square meters and 60 square meters respectively. The PMAY loan subsidy will be calculated for a maximum amount of INR 6,00,000 for both these categories. Moreover, an annual interest rate of 6.50% is charged on the housing loan.

The other features include the following.

Maximum Home Loan Tenure 20 years for both
Discount Rate for Calculating NPV (Net Present Value) of the interest subsidy 9% for both
Woman Ownership Mandatory for both excluding construction or renovation loans
The offer is applicable from January /2017 or later

Features and Benefits of the MIG-I/MIG-II Category

MIG I categories are restricted within a range of INR 6,00,000 and INR 12,00,000 annual income whereas MIG II categories range within INR 12,00,000 and INR 18,00,000 per annum. The maximum carpet area alloted to these categories are 160 square meters and 200 square meters respectively. The PMAY loan subsidy will be calculated for a maximum amount of INR 9,00,000 and INR 12,00,000 respectively for these categories. Moreover, an annual interest rate of 4% and 3% respectively is charged on the housing loan. Lastly, an additional subsidy amount of up to INR 2.35 Lakh is provided for MIG I category and INR 2.30 Lakh for the MIG II category.

Types of PMAY Scheme

There are two types of PMAY schemes introduced by the Government of India. These subdivisions are aimed to solve an array of problems pertaining to housing loan disbursement to people from lower-income sections. These divisions are as follows:

Pradhan Mantri Awas Yojana Gramin (PMAY-G):

Previously known as Indira Awas Yojana, the Pradhan Mantri Awas Yojana was reintroduced as the PMAY-G in the year 2016. Their main objective was to provide affordable residential units to its consumers. The benefit was narrowed down to users that were spread across the rural areas in pan India excluding the territories of Chandigarh and Delhi. The development cost involved in the scheme was shared among the central and respective state governments in the ratio of 60:40.

Pradhan Mantri Awas Yojana Urban (PMAYU):

The Pradhan Mantri Awas Yojana targets urban areas across India. Currently, in total 4,331 towns & cities are enrolled under the PMAY scheme. It will function within three distinct phases

  • Phase 1: Within Phase 1, the government set a target for covering 100 cities across various states & UTs around the nation. This target was met from April 2015 to March 2017.
  • Phase 2: As per Phase 2, further 200 cities were targeted from April 2017 to March 2019 across the nation.
  • Phase 3: In Phase 3, the target is to cover the cities left after the successful completion of Phase 1 & Phase 2. This target is all set to be met by March 2022.

Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator

The consumers of the Pradhan Mantri Awas Yojana (PMAY) subsidy have the provision to calculate the outcome of availing the housing loan in terms of the monthly breakup of the expenses. Since the vision of the Pradhan Mantri Awas Yojana Home Loan scheme was to smoothen the financial assistance procedure to weaker sections of the country, there are reduced EMI options available as well.

The calculation of PMAY loan EMI can be done by incorporating the following particulars

  • Principal amount in INR
  • The rate of interest
  • Duration of the loan tenure

PMAY Customer Care Helpline Numbers

Customers faced with a query regarding the PMAY scheme can contact the official customer helpline number as given below.

  • 011-23063285, 011-23060484
  • Alternatively, users can also send an email to their official ID given below.
  • pmaymis-mhupa@gov[Dot]in

Address

Pradhan Mantri Awas Yojana (Urban) Ministry of Housing and Urban Affairs Nirman Bhawan, New Delhi-110011

List of State Level Nodal Agencies for PMAY

The Government has assigned HUDCO, NHB, and SBI to centrally monitor the distribution of PMAY subsidy to the targetted beneficiaries. Given the vastness of the outreach, state-level nodal agencies were set up. These state-level nodal agencies for PMAY are as follows.

Nodal Agencies PDF Link- https://pmaymis.gov.in/assets/pdf/SLNA_List.pdf

Top Banks Offering Home loans Under PMAY Scheme

There is an array of public and private sector banks functioning to carry out the PMAY scheme operations. Furthermore, various Cooperative banks, RRBs, small finance banks, NBFCs, and HFCs, also play a major role in allocating housing loans. Some of the top banks offering home loans under the PMAY subsidy scheme are as follows:

Banks PDF Link – https://mohua.gov.in/upload/uploadfiles/files/CLSS%20for%20MIG%20-%20List%20of%20PLIs%20-%2031%20Dec%202017.pdf

Related Resource
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Top Housing Finance Companies in India
Home Buying Tips for 2022 
Top Home Loans for 2022

FAQs 

What is the minimum time in which the subsidy amount from PMAY gets credited to the beneficiary’s account?

The subsidy amount from PMAY is usually credited within 3 to 4 months within the beneficiary’s account. It thoroughly depends upon the verification process carried out by the government.

How to obtain Assessment ID for Pradhan Mantri Awas Yojana?

The Assessment ID is engendered by the PMAY portal. It is generated after the successful completion of the registration process. You can use the ID to trace the status of your loan application.

Is a woman eligible for the PMAY scheme?

Pradhan Mantri Awas Yojana gives preference to women applicants specifically who run their families and belong to lower-income groups. Although, if any of your family members including husband and father has applied for the same then your application will be rejected.

What special benefits are given to senior citizens?

PMAY grants special benefits to senior citizens by providing them home on ground floors. Moreover, you need to make sure that you get into the process at the early stages as the same has to be shared with the differently abled applicants too. So, don’t miss the opportunity by being a late applicant.

What does DBT stand for?

DBT stands for Direct Benefit Transfer. As per DBT, all beneficiaries receive the associated funds in an installment pattern. As per the scheme it will be directly credited within the beneficiary’s accounts. The applicant doesn’t have to run to offices and banks, multiple times.

What is the purpose of Geo Tag?

It is crucial to maintain transparency within the housing project. With geo tag metadata will be added with a photograph that will be present at your home location on the map. It will help in retaining recent satellite imagery to depict the project's progress. With the help of geo tag you will be able to remotely monitor the housing unit.

For how long will the PMAY scheme last?

The PMAY home loans project is expected to last by 2022. The target is to have beneficiaries across all regions by the end of 2020. The construction of the project and residency might take a longer time.

What is the required annual income for PMAY?

As per PMAY, the beneficiary can’t have an annual income of more than INR 18 lakhs. Although, there are no predefined lower limits for the income requirement.

What is the role of the Central Nodal Agency in the PMAY project?

The central nodal agencies are responsible for carrying out the verification process. After the completion of verification, the eligible beneficiaries are disbursed with a subsidy amount that is directly sent to the applicant’s account. In simple words, they perform the credit-linked subsidy.

What is the meaning of carpet area in Pradhan Mantri Awas Yojana?

The carpet area stands for the area that is enclosed within the walls. It is the actual area for laying the carpet. This area is computed excluding the inner wall’s thickness.

What is FAR in the Pradhan Mantri Home Loan Scheme?

Go through the following equation to easily understand what FAR depicts: Floor Area Ratio = Total enclosed area x 100 / Plot area. Although, certain cities might have varied FAR definitions

Can you apply for PMAY without an Aadhaar Card?

To apply for PMAY through online mode, it is compulsory to own an Aadhaar Card. It is recommended to get your Aadhar Number via the nearest CSC or Common Service Centre. Do this as soon as possible as it can interrupt your PMAY application.

Is there any registration fee associated with PMAY?

You have to pay INR 25 in addition to service tax as an application fee. This fee will be paid at Common Service Centres. In addition, you don’t have to pay any fee when you apply for PMAY online.

What is the process to apply for the PM Awas Yojana Online?

Visit the official portal of PM Awas Yojana. The entire process is quick and easy. Enter your Aadhar number and follow on-screen directions. You just have to fill the form with basic personal details and that’s it. You are done.

How can you check the PMAY Application Status?

To track the PMAY application status, all you need to do is log in to the website at https://pmaymis.gov.in. From the available tab select the tracking option and follow up the shown directions. It will show the status of your PMAY application.

Can I edit the details after the submission of the PMAY application?

1. Visit the PMAY official portal 2. Enter the availed application reference number in addition to Aadhaar details 3. Select the “Edit” option 4. Edit the existing details with the correct ones

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