The Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana (PMAY) is a Government of India initiative to provide affordable housing to the urban poor, with a goal of constructing 2 crores (20 million) affordable houses by March 31, 2022. It is divided into two parts: Pradhan Mantri Awas Yojana (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (PMAY-G and PMAY-R) for the rural poor. This scheme is linked to other schemes to ensure that houses have a toilet, an electricity connection, an LPG link, access to drinking water, and Jan Dhan banking facilities, among other things. As of December 28, 2019, a total of 1 crore homes have been approved against a total demand of 1.12 crore.
The government will provide an interest subsidy of 6.5 percent (for EWS and LIG), 4 percent for MIG-I, and 3 percent for MIG-II on housing loans obtained by beneficiaries for a period of 20 years under the credit link subsidy scheme (CLSS) from the start of a loan. The houses under the Pradhan Mantri Awas Yojana would be built using eco-friendly technology, and preference would be given to differently-abled and elderly people when allotting ground floors in any PMAY housing scheme.
The government approved an Rs.43,922 crore (US$5.8 billion) investment for the building projects of 6,83,724 houses for the urban poor, including an Rs.10,050 crore (US$1.3 billion) central assistance commitment by April 2016.
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Criteria for Eligibility:
(a) The beneficiary’s maximum age is 70 years.
(b) EWS (Economical Weaker Section) family income limit is 3 lakhs per annum, LIG (Lower Income Group) family income limit is 6 lakhs per annum, (MIG-I) income between 6 lakhs and 12 lakhs per annum, (MIG-II) income between 12 lakhs and 18 lakhs per annum.
c) The beneficiary must not own a home in any part of India in the name of any family member.
d) The loan applicant must not have received any federal or state government subsidy or benefit for buying a home through the PMAY scheme.
e) At the moment, the loan should not own any property in their name or with any of the family members.
PMAY’s three phases try to imagine beginning and completing house construction work as follows:
- PMAY Phase 1 will run from April 2015 to March 2017 and will cover 100 cities.
- PMAY Phase 2 will run from April 2017 to March 2019, covering an additional 200 cities.
- PMAY Phase 3 will run from April 2019 to March 2022, covering the remaining cities. Covered states and cities.
The government approved the start of urban poor housing development in 2,508 cities and towns in 26 states on 25 April 2016.
The construction of 1,86,777 additional houses for the benefit of the urban poor was approved in February 2018, with an investment of 11,169 crore and central assistance of 2,797 crores, bringing the number of houses approved to 39,25,240, including subsumed RAY scheme, of the targeted 1 crore houses by March 2022.
- Chhattisgarh has 1,000 cities and towns.
- Jammu and Kashmir have 19 cities and towns.
- Jharkhnd contains 15 cities/towns.
- Madhya Pradesh has 74 cities and towns.
- Haryana, 53,290 houses in 38 cities and towns, with a 4,322 crore investment (c. Feb 2018).
- Tamil Nadu, 40,623 houses in 65 cities and towns, with a $2,314 crore investment (c. Feb 2018).
- Karnataka, 32,656 houses in 95 cities, 1,461 crores invested (c. Feb 2018).
- Gujarat, 15,584 houses in 45 cities and towns, with a 946 crore investment (c. Feb 2018).
- Maharashtra, 12,123 houses in 13 cities and towns, 868 crores invested (c. Feb 2018).
- Kerala, 9,461 houses in 52 cities, 284 crores invested (c. Feb 2018).
Private contributors IIFL Home Loans have been assisting beneficiaries across the country in obtaining Credit Linked Subsidy under the Pradhan Mantri Awas Yojana. Until August 17, 2017, the company assisted 4187 beneficiaries in obtaining government subsidies. People who qualify for this scheme can get subsidized home loans from ICICI Bank. Under this scheme, AU Housing Finance Limited also provides subsidy-based financing. Home First Finance Company also helps beneficiaries in obtaining credit-linked subsidies under the Pradhan Mantri Awas Yojana in various parts of India.
The “Rajiv Awas Yojana (RAY)” was an Indian government program that tried to help slum dwellers find proper housing while simultaneously addressing the processes that formed and reproduced slums. The Ministry of Housing and Urban Poverty from the government of India introduced this. From 2013 to 2014, the program was a Centrally Sponsored Scheme. The scheme aimed at removing slums in India by 2022 by providing people with free shelter or housing. It began as a pilot project before going into mission mode. During India’s 12th Five Year Plan, the government set aside 32,230 crores (US$4.2 billion) for its implementation. The Rajiv Awas Yojana is expected to benefit one million people.
The states were to select sites in consultation with the Centre, with priority given to district headquarters, cities of religious heritage, and cities of tourist importance, with due consideration given to the criterion of the city’s pace of growth, the presence of slums within the city, and the predominance of Scheduled Caste, Scheduled Tribe, and minority population, as well as other weaker and vulnerable elements of society. SBI has now reduced the interest rate on home loans exceeding 75 lakh by 10 basis points. The rate will be 8.55-8.6 percent beginning June 15, 2017.
Affordable Rental Housing Complexes (ARHCs) the Ministry of Housing and Urban Affairs has launched the Affordable Rental Housing Complexes (ARHCs), a sub-scheme of the Pradhan Mantri Awas Yojana – Urban (PMAY-U). This will make it easier for urban migrants and the poor in the industrial sector as well as the non-formal urban economy to find dignified, affordable rental housing close to their workplace. The ARHC scheme will be implemented in two ways:
Using existing government-funded vacant houses to convert into ARHCs via public-private partnerships or public agencies ARHC construction, operation, and maintenance by public/private entities on their own vacant land.
ARHC recipients are urban migrants/poor from EWS/LIG categories. ARHCs will be a mix of single/double bedroom Dwelling Units and a Dormitory of 4/6 beds with all common facilities that will be exclusively used for rental housing for a minimum of 25 years.
These complexes will provide a dignified living environment for urban migrants/poor near their workplaces at affordable rates. This will liberate existing vacant housing stock and make it available in urban areas. It’ll stimulate new investment openings and foster entrepreneurship in the rental housing sector by encouraging private and public realities to efficiently use vacant land for the development of ARHCs.
Progress for the State
India is participating in the Global Housing Technology Challenge (GHTC).
The Global Housing Technology Challenge-India (GHTC-India) was launched by MoHUA with the thing of relating and popularisation a handbasket of innovative construction technologies from around the world for the housing construction sector that’s sustainable, eco-friendly, and disaster-flexible. Six Light House Projects (LHPs), each with nearly 1,000 houses and allied services, are being built using innovative technologies selected through GHTC-India that are appropriate for the region’s geo-climatic and hazard conditions. These LHPs are demonstrating the rapid construction of ready-to-live mass housing, which will be more economical, sustainable, of high quality, and durable than traditional brick and mortar construction.
CLSS AWAS Portal (CLAP)
CLSS Awas Portal (CLAP), a web-based monitoring system, is a shared platform for all stakeholders, i.e. MoHUA, Central Nodal Agencies, Primary Lending Institutions, Beneficiaries, and Citizens are all connected in real-time. The platform streamlines application processing and allows beneficiaries to track their subsidy status. CLSS tracker has also been incorporated into PMAY(U) mobile App and UMANG platform.
How Does One Apply for a House Under Pradhan? Mantri Awas Yojana
The Ministry of Housing and Urban Development has established a simple yet effective process for people to apply for a house under the scheme. The form is basically two pages long and requires the user to fill out all of their personal information. Here’s a page-by-page breakdown of how each page looks:
Page 1: “Enter Aadhaar Number.” When the Aadhaar number is verified, the application advances to the next page. The government uses the Aadhaar number to ensure that an individual applies for the scheme and does not defraud the system.
Page 2: Enter the applicant’s personal information. He or she must provide information about the state in which they live, the head of the family, current residential address, and other pertinent information.
The other three components – Beneficiaries of the Housing for All by 2022 Scheme include the Economically Weaker Sections (EWS), Middle Income Groups (MIGs), and Lower Income Groups (LIGs). EWS has an annual income cap of Rs.3 lakh. LIG can earn a maximum annual income of between Rs.3 lakh and Rs.6 lakh. MIG has an annual income cap of Rs.6 lakh to Rs.18 lakh. MIG and LIG categories can use the CLSS component. In contrast, EWS is eligible for help in all verticals.
Dwellers in Slums – A slum is an area where 60 to 70 households, or approximately 300 people, live in substandard housing. How does one apply for the Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana can be applied in two ways:
The Pradhan Mantri Awas Yojana website allows you to apply directly online. There are various forms that must be completed depending on the type of benefit sought. Filling out the form requires the use of an Aadhar card. Beneficiaries who choose the credit-linked subsidy scheme can approach impaneled banks that offer home loans directly. The subsidy will be paid directly to the bank, reducing the borrower’s loan balance.
Those who want to apply for the PM Awas Yojana offline can do so by filling out a form at a Common Service Centre (CSC) run by the state governments. Offline forms are available for Rs. 25 plus GST. It should be noted that no private individuals or businesses are permitted to collect money in order to benefit from this scheme.