PM Awas Yojana

Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana – Awas Yojana Complete Details

PMAY Pradhan Mantri Awas Yojana (Urban Only ) – Pradhan Mantri House for All Scheme, Complete Details | Notification | Subsidy | Loan

Owning a home is probably the best achievement for any individual . For those who earn handsome amount of money, this is not a big thing. But for financially weaker section this is a big deal. Pradhan Mantri Narendra Modi has come forward to help such people under Pradhan Mantri Awas Yojana . This Awas Yojana is of two type – 1) Pradhan Mantri Awas Yojana (Urban or Shehari) 2) Pradhan Mantri Gramin Awas Yojana (Rural). In this article, we are focusing on Awas Yojana (Shehari).

There is a lot to know about Pradhan Mantri Awas Yojana like what does it has to offer ? Who can apply ? What is the procedure to apply and lots and lots of similar questions. Through this article our aim is to provide every piece of information regarding this scheme. So, kindly read the complete article to so that you can understand everything that is to know about this scheme.

Pradhan Mantri Awas Yojana

What is this Scheme ?

Prime Minister Narendra Modi has a vision. He wants that when the nation celebrates 75 years of Independence i.e. in 2022, people has a reason to celebrate. He want to deliver Pucca houses to financially weaker sections. To complete this huge task Pradhan Mantri Awas yojana scheme has been released. Under this scheme affordable Pucca Houses with water facility, toilet facility, 24*7 electricity supply and access will be built.

How "Pradhan Mantri Awas Yojana" Operates?

This scheme is being carried out in 4 components. This means that there are 4 different types in which this scheme will take place. These 4 components are –
  • Transforming Slum Areas i.e. Slum Rehabilitation of Slum Dwellers - This components will be carried out with the help of private developers using land as resource.
  • Credit Linked Subsidy
    1. Under this component, weaker economical section will be given subsidy on home loans taken by Urban Poor (EWS/LIG) 2. This subsidy will be available for the loans availed for new construction and addition of rooms(kitchen, toilet etc.). 3. This subsidy will only be available for loan amounts upto 6 Lakhs upto 12 lakhs. For Loan of amount more than 12 lakh, no subsidy will be given.
  • Affordable Housing In Partnership – This component is a supply side intervention. Under this component, financial assistance to EWS (Economically Weaker Section) houses being built with different partnerships by States/UTs/Cities, will be given
  • Beneficiary led Individual house construction or Enhancement– Under this component, assistance to eligible families belonging to EWS categories will be given. This assistance will be given to either construct new houses or enhance the existing houses on their own. A central assistance of Rs. 1.5 lakh will be given under this component

This scheme will remain functional from 17th June 2016 to 31s March 2022

Who is Eligible to Apply – Beneficiary or Target Group

  • Beneficiary i.e. the interested individual (or his/her family member) should not own a pucca house. In simple terms it means that the applicant should be first time home buyer.
  • Only the applicants belonging to LIG (Lower Income Group) & Economically Weaker Section (EWS) are eligible. Here is detailed info –

EWS – Annual income should not exceed Rs. 3 Lakhs per annum

LIG – Annual income should not exceed Rs. 6 Lakhs per annum

Awas Yojana – Carpet Area

The carpet area of the houses being constructed would be –

  • For Economically Weaker Section (EWS) Applicants – 30 square meters
  • For Lower Income Group (LIG) Applicants – 60 square meters

Pradhan Mantri Awas Yojana – Loan,Subsidy & Interest Rates

Earlier in this article, we discussed about Credit linked subsidy. In this section we will discuss about it in details and we will also discuss about the Awas yojana loan.
Loan Amount Interest Rate Notes
Upto 6 Lakhs 6.5 per annum This interest rate is fixed. It would not have any effect from RBI rate
Upto 9 Lakhs 4% concession on current interest rate This depends on the current interest rate being provided. if current interest rate is 9 % than the applicant has to pay (9-4) = 5% interest
Upto 12 Lakhs 3% concession on current interest rate This depends on the current interest rate being provided. if current interest rate is 9 % than the applicant has to pay (9-3) = 6% interest
Other conditions regarding Awas Yojana Loan –
  • The tenure of the home loan shall be maximum of 15 years
  • In the above table you can see that the concession in the interest rate is given for loan upto 12 Lakh. You might be wondering what will happen if the loan amount exceeds 12 Lakh. In that case, subsidized interest rate will be valid for 12 Lakh and for the remaining amount no concession will be given

Once the applicant is allotted a home under Awas yojana, he will have the freedom to choose subsidized loan through any participating bank. These banks could be Scheduled commercial banks, Regional Rural Banks, Housing finance companies, State Cooperative banks or any other approved institutions.

Subsidy Under Pradhan Mantri Awas Yojana

Under this scheme, the subsidy amount will be credited upfront to the beneficiary loan account. This will result in reduced EMI. Any one can calculate the subsidy using this great tool –

PM Awas Yojana Subsidy Calculator
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