India’s Prime Minister Narendra Modi came with a vision of housing for all when he came into power in 2014. He wishes to provide housing to low-income families by the time India completes its 75th Independence. This vision culminated to Pradhan Mantri Awas Yojana. It is an effort to offer a house to the needy. The scheme seeks to address housing concerns through the following programs:
Slum rehabilitation Credit-linked subsidy for the weaker section Affordable housing in collaboration with public and private sectors Beneficiary-led house constructionWhat is the scheme all about?
The PMAY scheme, earlier known as housing for all, came into force in 2015. It will continue until 2022. The mission is to build 2 crore houses for the eligible low-income families and beneficiaries across the country. Barring the credit-linked subsidy scheme, the remaining programs are part of Central Sponsored Scheme. The states and union territories are given the liberty to formalise and execute the plan as per the guideline defined by the mission. This ensures the scheme gets implemented in a timely fashion without any delays.
What are the eligibility criteria?
The only criterion of the PM Awas Yojana is your family members, or you should not hold a pucca house.
Also, all listed statutory towns are eligible for the scheme. The other aspects of the programme are as follows:
The slum rehabilitation and affordable housing programs in association with public and private sectors will cover basic facilities like water, road, sanitation, electricity, and basic hygiene. The care towards these basic amenities will be provided by Urban Local Body (ULB) under CLSS and beneficiary-led house.What is the implementation ideology?
PMAY is divided into four programs:
Slum rehabilitation: The slum redevelopment is done using the Central and State Government’s land as a resource. There is an additional requirement of FAR/TDR/FSI to make these schemes financially possible CLSS: The credit-linked subsidy scheme (CLSS) depends on the housing loan taken by eligible low-income families for construction purpose. The Government offers an interest subsidy of 6.5 per cent for loans taken for a 15-year term. The loan amount should be INR 6 lakh. The subsidy is not applicable for loan amount above INR 6 lakh. The scheme ensures a low EMI for Economically Weaker Section (EWS) and Low-Income Group (LIG) Affordable housing: Housing provisions are promised to EWS by States and Union Territories by partnering with public and private sectors. This program can be conducted through public agencies or private industries as well Beneficiary-led house construction: The program is applicable for those who cannot avail any of the mentioned three schemes. These families enjoy Central Assistance of INR 1.5 lakhs for construction of the houses. They need to, however, get approved by SLSMC before commencement.What is the PMAY subsidy calculator all about?
It is an instrument that allows you to calculate the discount you can avail on the housing loan obtained from the scheme. How to use the PMAY subsidy calculator? Follow the steps:
Log in to the official PMAY websiteClick on the ‘others’ option and select ‘NPV subsidy calculatorEnter your loan details such as amount, interest rates, and tenureClick on ‘calculate’You will receive information on the subsidy amount you will get from the loan
About the Author
Rudra Raghvan is an Mba student and financial advisor in Mumbai.he shares his financial experience and guides you about all your financial queries.
