Launched on 25th June 2015, Pradhan Mantri Awas Yojana-Urban is a flagship mission of the Indian government, implemented by the Ministry of Housing and Urban Affairs (MoHUA). This housing mission aims to address the issue of urban housing shortage among Low Income Group (LIG), Economic Weaker Section (EWS) and Middle Income Group (MIG) categories involving slum residents by offering a pucca house to all eligible urban households by 2022.
The Pradhan Mantri Awas Yojana-Urban adopts a demand-driven approach where the housing shortage is decided on the basis of demand assessment by State and Union Territories. If we talk about the top players of PMAY-U, State Level Nodal Agencies (SLAs), Implementing Agencies (IAs), and Primary Lending Institutions (PLIs) are the key stakeholders who play a great role in the success and implementation of PMAY-Urban.
The mission focuses on covering the overall urban areas containing the Notified Planning Areas, Statutory Towns, Special Area Development Authorities or any such authority under State legislation entrusted with the working of urban regulations and planning. Besides this, the mission also promotes women's empowerment by offering the ownership of homes in the name of the female member or a joint name. In some cases, preference is also given to specially-abled persons, SCs, STs, OBCs, senior citizens, minorities, transgender, single women and other vulnerable and weaker section of the urban society.
Key Features of PMAYU
The top features of PMAY HFA are as stated below:
Beneficiaries of Pradhan Mantri Awas Yojana-Urban scheme 2022 will receive an interest rate subsidy of 6.5% on home loans dependent on the income slab.
Home loans can be taken to purchase a resale home or for home construction.
Loan tenure is up to 20 years.
Sustainable and eco-friendly technologies will be used for the properties.
Specially abled persons and senior citizens will be prioritized for ground floor housing.
Basic utility services like electricity, gas connection and water will also be involved.
PMAY Urban 2022 Eligibility Criteria
The eligibility under the PMAY-Urban scheme is determined on the basis of total household income as given below:
Economic Weaker Sections (EWS): Household income up to Rs.3 lakh.
Middle Income Group -I (MIG-I): Household income Rs.6 lakh to Rs.12 lakh.
Middle Income Group-II (MIG-II): Household income is Rs.12 lakh to Rs.18 lakh.
Low Income Group (LIG): Household income is Rs.3 lakh to Rs.6 lakh.
All the applicants applying for the PMAYU scheme in the LIG, MIG-I and MIG-II categories are eligible for the CLSS, i.e. Credit-Linked Subsidy Scheme. On the other hand, applicants in the LIG category are eligible for complete assistance under PMAY.
Calculating Subsidy Under PMAY-U
For home loan amounts of up to Rs.6 lakh, the credit-linked subsidy is 6.5%. All applicants in the Rs.12 lakh per annum income category will receive a subsidy of 4% on Rs.9 lakh home loan amount. Those in the Rs.18 lakh per annum group will get a subsidy of 3% on Rs.12 lakh home loan amount. This applies to loans with 20 years of tenure. One thing to note here is that loan amounts beyond the subsidized amount won't be eligible for an interest subsidy.
For your information, the interest subsidy amount is the NPV, i.e. Net Present Value, which is calculated at a 9% discount rate. The interest subsidy reduces the amount of your home loan, which later results in a reduction in your interest amount as well.
In order to calculate the PMAY subsidy, let us take the category of income of up to Rs. 12 lakh/annum.
Original Home Loan Amount: Rs.9 lakh
Housing Loan Rate of Interest: 9% p.a.
Total Interest Over the Period of 20 Years: Rs.10.43 lakh
With PMAY-Urban interest subsidy:
Maximum Subsidised Loan Amount: Rs.9 lakh
Eligible Subsidy: 4%
Net present Value (NPV) of Interest Subsidy: Rs. 2.35 lakh
Revised Loan Amount: Rs. 6.65 lakh
Housing Loan Interest Rate: 9%
Total Interest Over 20 Years: Rs.7.70 lakh
Total savings in interest: Rs.272445
Total savings in EMI: Rs.2114
Guidelines for PM Awas Yojana 2022- Urban
The guidelines for Pradhan Mantri Awas Yojana-Urban 2022 are as follows:
No family member must own a pucca house in their name in any part of the country.
Married couples are eligible for a single house, either under single or joint ownership.
The beneficiary family comprises husband and wife and any unmarried daughters or sons.
Beneficiaries must not have availed help from any other government housing scheme.
Aadhar numbers of the family members must be provided during the loan application process.
An adult earning family member (irrespective of marital status) will be considered a separate household if they don't own a pucca house in any part of India.
List of Top PMAY-U Programmes
The list of top PMAY-Urban programmes is as follows:
1. Affordable Housing in Partnership (AHP)
Under the AHP program, housing for the Economic Weaker Sections (EWS) category will be constructed in partnership with the private and public sectors. The government of India will offer assistance of up to Rs.1.5 lakh per home. AHP will be eligible for fund assistance from the Central Government if atleast 35% of its housing is for the EWS class of the society and if there are at least 250 homes in the project. The rest of the homes can be for any income group.
2. Affordable Housing Through Credit-Linked Subsidy
Under the Affordable Housing Through Credit-Linked Subsidy scheme, an interest subsidy is offered to beneficiaries of up to Rs.2.67 lakh, specifics of which are determined on the basis of their income category.
3. Subsidy for Beneficiary-Led Construction (BLC) or Enhancement
This is offered to the EWS class families to construct a new home or enhance their existing home. Central help of up to Rs.1.5 lakh can be availed for this. Also, there must be a minimum addition of 9.0 square meters of carpet addition to the residential unit.
4. In-Situ Slum Redevelopment
Under In-Situ Slum Redevopmemt scheme, the government of India will get into a partnership with private firms with a motive of building houses for slum dwellers on the land on which slum is located. For each eligible house, a rehabilitation grant of Rs.1 lakh will be offered.
Frequently Asked Questions (FAQs)
1. Can I Apply for the PMAY-U scheme if my parents own a property in India?
If you fall under any of the income categories stated above, you can apply for the PMAY-U scheme even if your parents own a house. This is because adult earning members are considered a separate household, but make sure you don't own a pucca house anywhere else in your name.
2. Will I be eligible for the PMAY-U scheme if I have a plot of land?
Yes, if you fulfil all the eligibility criteria of PMAY-U, you can avail of the subsidy under the Beneficiary-led individual House Construction scheme.
3. Can a married couple in India apply for two separate interest subsidies for two separate home loans under the PMAY-Urban scheme?
No, a married couple is only allowed and eligible for a single house under the PMAY-scheme.