PMAY

What is PMAY Scheme?

Housing For All Scheme (Pradhan Mantri Awas Yojana – Urban) (PMAY-U) is a flagship Mission that is being implemented by the Ministry of Housing and Urban Affairs (MoHUA), Government of India. It was launched on 25 June 2015.

• The Housing For All Scheme's aim is to address the lack of urban housing among EWS/LIG and MIG categories, including slum dwellers, by guaranteeing a pucca house to all qualified urban households by 2022. The time period was chosen in 2022 because the country would have achieved 75 years of independence.
• The Housing deficit under PMAY(U) is determined based on demand assessments made by the States and Union Territories.
• The primary players who contribute significantly to the implementation and success of PMAY are:
  • State-Level Nodal Agencies (SLNAs)
  • Urban Local Bodies (ULBs)
  • Implementing Agencies (IAs)
  • Central Nodal Agencies (CNAs)
  • Primary Lending Institutions (PLIs).

Eligibility of housing for all schemes

• Any household with an annual income between Rs. 3 lakh and Rs. 18 lakh is eligible for this program.
• A pucca house cannot be currently owned by the applicant or any member of their family elsewhere in the nation.
• On a home that has already been constructed, the beneficiary is not eligible to receive PMAY benefits.
• If the applicant is married and owns their property jointly, any of them may receive a single subsidy.

Scope of Housing For All Scheme

The functional period of the Housing For All Scheme in India is from 2015 to 2022. It is implemented as a Centrally Sponsored Scheme (CSS), excluding the component of credit-linked subsidy, which will be implemented as a Central Sector Scheme. The Pradhan Mantri Awas Yojana covers the entire urban area, which also includes the following:

• Statutory Towns
• Notified Planning Areas
• Development Authorities
• Special Area Development Authorities
• Industrial Development Authorities

PMAY (Urban)

There are four types of PMAY (Urban) schemes:

• Economically Weaker Sections (EWS): This scheme is for families with an annual income of up to Rs. 3 lakh.
• Lower Income Group (LIG): This scheme is for families with an annual income of Rs. 3 lakh to Rs. 6 lakh.
• Middle Income Group (MIG) I: This scheme is for families with an annual income of Rs. 6 lakh to Rs. 12 lakh.
• Middle Income Group (MIG) II: This scheme is for families with an annual income of Rs. 12 lakh to Rs. 18 lakh.

PMAY (Gramin)

There are two types of PMAY (Gramin) schemes:

• Individual House Construction/Improvement: This scheme provides financial help to eligible beneficiaries. This is for the construction or improvement of their houses.
• Group Housing Ventures: This scheme provides financial help to groups of eligible beneficiaries. This is for the construction of group housing ventures.

Components of Housing For All Scheme

There are four components of the Housing For All Scheme listed below.

In-situ Slum Redevelopment (ISSR)

• Central assistance of Rs. 1 lakh per house is available for all houses constructed for eligible slum residents under the ISSR component.
• The State/UT Government de-notify slums after rebuilding.
• States and cities are allowed the freedom to use this central assistance for the redevelopment of additional slums.

Credit Linked Subsidy Scheme (CLSS)

Beneficiaries of the Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG-II), and other such institutions, are eligible for interest subsidies of 6.5%, 4%, and 3% on loans up to Rs. 6 lahks, Rs. 9 lahks, and Rs. 12 lahks, respectively, for purchasing, building new homes, or improving existing homes.

Affordable Housing in Partnership (AHP)

• The Indian government offers Central Assistance under AHP in the amount of Rs. 1.5 lakh for every EWS housing.
• A project for affordable housing may include a mix of homes for various income levels. It will only be qualified for Central Assistance if at least 35% of the project’s homes fall under the EWS category.

Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E)

• Eligible households from EWS categories are given central assistance up to Rs. 1.5 lakh per EWS category for home building or improvement.
• The Urban Local Bodies validate the building plan and information that the beneficiary has provided. Based on the information, they determine land ownership and other information like economic situation and eligibility.

Beneficiaries of the Housing For All Scheme

The beneficiaries under the Housing For All Scheme in India are listed in the table below.

• The EWS group of beneficiaries is eligible for assistance in all four verticals of the Pradhan Mantri Awas Yojana (PMAY). The LIG and MIG categories are only eligible for assistance under the Credit Linked Subsidy Scheme (CLSS) component.
• To be identified as an EWS or LIG recipient under PMAY, an individual loan applicant must provide self-certification or an affidavit as evidence of income.
• A beneficiary family will consist of a husband, wife, and unmarried daughters or sons.
• To qualify for central aid under PMAY, the beneficiary family cannot own a pucca house in any area of India.
• Houses are given with female member ownership or shared ownership.
• People with disabilities, the elderly, minority groups, and vulnerable groups in society are given preference.

Achievements and Development of PMAY

• PMAY has made significant progress in providing affordable housing to economically weaker sections. It ensures that every Indian will have a pucca house by 2022.
• PMAY provides subsidized interest rates on home loans for both urban and rural beneficiaries. This makes homeownership more affordable.
• The scheme promotes the construction of affordable housing units. This is particularly true for the economically disadvantaged sections of society.
• PMAY addresses the housing needs of both urban and rural areas, catering to a wide spectrum of the population.
• The scheme has encouraged financial inclusion by making it easier for beneficiaries to avail of housing loans.
• PMAY gives preference to female members of the household as joint owners or beneficiaries. This promotes women's empowerment and property rights.
• The scheme encourages the use of innovative construction techniques and technologies to expedite housing construction.
• Beneficiaries can avail of home loans at significantly lower interest rates. This makes housing more affordable.
• CLSS, under PMAY, offers interest subsidies on home loans. This reduces the overall cost of the house for beneficiaries.

Key Points of Housing For all Scheme

Some of the key features of the PMAY scheme are listed below.

• The Housing for All scheme in India program offers participants who take up a house loan for up to 20 years a reduced interest rate of 6.50% per year.
• For the medium-income group (MIG), the interest on housing loans for the purchase or construction of homes will be subsidized (including repurchase).
• Technologies that are durable and friendly to the environment will be used during construction.

Conclusion

The housing for all programme is a great way to help the underprivileged in rural and urban areas as well as those who are economically disadvantaged. To put the program into action, the Indian government has undertaken numerous actions and initiatives. The aim will be accomplished if the plan is carried out in accordance with the provisions.