|Current ongoing PMAY projects in Gurgaon & Sohna Haryana|
The Pradhan Mantri Awas Yojana (PMAY) in GURGAON haryana- Support HUDA Affordable Housing Policy Flats. The Customer Can Get Subsidy as given below, if he/she eligible –
PM Narendra Modi announces new Housing Schemes with rebates/discounts on Home Loan interest rates under Pradhan Mantri Awas Yojana (PMAY). Two new middle income categories have been created under the Pradhan Mantri Awaas Yojana in urban areas. Home loans of up to 9 lakhs, will get a 4% interest benefit. For home loans of up to 12 lakhs, an interest rate waiver of 3% will be provided. In villages, those wanting to build or expand their homes will get loans of up to 2 lakh, with a 3% interest relief.
Pradhan Mantri Awas Yojna (PMAY) renamed from Housing for all by 2022 scheme has been launched by the government. The PM Awas Yojna aims to provide affordable homes to about 20 million families within next 7 years i.e. from 2015 to 2022. EWS and LIG categories of the urban society will be the main beneficiaries of the scheme.
Below are the quick links to access the detailed information about PM Awas Yojna 2015 housing scheme such as subsidy information, loan facility, facilities of the housing projects, application forms and procedure and much more.
The following demographics are eligible for the scheme:
- Indian citizens who are women may apply. No other demographic will be considered as long as they are women.
- People who belong to the low income group i.e. LIG and economically weaker sections also known as EWG in the society, may also apply. EWS households with an annual income up to Rs. 3 Lakh, LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh
- Scheduled tribes and castes will also be eligible.
- Senior citizens and differently abled will be given special priorities for ground floor housing.
Pradhan Mantri Awas Yojana or Housing for all by 2022 Scheme –
Objectives of the PMAY Scheme:
Based on recent estimates, as of September 2016, the population of the urban dwellers in India increased at an alarming rate and is expected to see a greater rate of growth in the following years. It is said that by 2050, urban dwelling population will rise to 814 million people. The calculation predicted is almost twice the number that already reside in urban areas. The major challenges also include providing people with housing options that are affordable and other major related concerns such as sanitation along with sustainable development. The Ministry also has to ensure a sustainable and safe environment for the urban population.
- The main objective of the Pradhan Mantri Awas Yojana is housing that is affordable for all by the year 2022.
- It also intends to make it accessible to demographics that are specific such as economically challenged groups, women along people belonging to minorities such as Scheduled Castes and Scheduled Tribes.
- The Government’s other goal is directly in association with some of the most ignored demographics which include widows, lower income group members, transgender and henceforth provide them with sustainable and affordable housing scheme.
- Special preferences for ground floor properties will be given to differently abled and senior citizens if required.
- Registration is mandatory to avail the benefits of this scheme which includes the strict beneficiary names to be mothers or wives.
- This scheme launch is intended to target urban areas of the following options to States or Union Territories as well as cities as mention earlier.
Important Things to Know About Urban PMAY (Basic Features)
- Subsidy interest rate is provided at 6.5% on housing loan for the term of 15 years to all the beneficiaries.
- Differently abled and senior citizens get preference in allocation of ground floors under this scheme.
- Sustainable and eco-friendly technologies would be used for construction.
- The scheme covers entire urban areas in the country which includes 4041 statutory towns with the first priority given to 500 Class I cities. This will be done in 3 phases.
- The credit linked subsidy aspect of the PMAY scheme gets implemented in India in all statutory towns from the initial stages itself.
Urban PMAY EMI Calculation through Interest Rates and Subsidy:
The EMI calculated will be significantly low under this scheme as the current home loan rate is 10.50% but will be reduced down to a whopping 6.5%, as mentioned earlier. Based on this interest rate the monthly installment payable for this loan, let’s say of Rs. 6 lakh for a term of 15 years would come to approximately Rs. 6,632. But the revised rates will allow a higher reduction which will reduce it to EMI of Rs. 4050 at 6.5%. So, people get to benefit a lowering of one-third of what they were paying earlier, which is Rs. 2000. There are 4 aspects of the subsidies:
- An average Rs. 1 lakh Central Grant will be given to the PMAY scheme subscriber.
- 6.50% subsidy will be given EWS & LIG through the credit linked subsidy scheme.
- 1.50 lakh worth of Central Assistance is supposed to be given to each beneficiary for enhancing housing stock especially for urban poor, as long as 35% of dwelling units of these projects that have been proposed are considered for the EWS category.
- Also, a sum of Rs. 1.5 lakh Central Assistance is supposed to be given to the urban poor who are eligible to build new homes or renovate existing homes.
The 3 Phases of the Urban PMAY Scheme:
Here is how the scheme will be played out in 3 phases:
Phase 1: It was expected to start by 2015. 100 cities across the country are targeted and the list can be found in the application form. This phase is supposed to end in March 2017. The cities under this scheme are expected to enjoy affordable housing under the scheme based on the PMAY objectives.
Phase 2: It should ideally start by April 2017 targeting 200 cities in the country and end by March 2017. The objectives remain the same.
Phase 3: The concluding phase will last for 3 years but with the target of all the remaining cities under the scheme. The phase is expected to begin in 2019 and end by March 2022.
Beneficiary of PMAY:
The beneficiary of this scheme is defined as the following:
- A family unit that includes a husband, a wife and children who are yet to be married.
- He/she/they must not own a constructed house in the Indian subcontinent to avail this scheme.
- He/she/they should be meeting the income requirements of the scheme.
Income Requirements of the Beneficiary for PMAY: The economically weaker sections consist of families with a yearly income of less than 3 lakhs. People who belong to annual income group of Rs. 3 lakhs and up to Rs. 6 lakhs will fall under lower income groups or LIG.
What is Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme?
Credit Linked Subsidy, is a scheme launched by our honourable Prime Minister Shri Narendra Modi for Economically Weaker Section (EWS) and Low Income Group (LIG). The beneficiary would be eligible for interest subsidy on purchase/construction of a house. The scheme is also available for enhancement of a dwelling unit.
Who can avail Credit Linked Subsidy Scheme?
A beneficiary is defined as:
A family comprising of husband, wife and unmarried children
Beneficiary should not own a pucca house either in their name or in the name of any member of their family in any part of India to receive central assistance under the Mission
Meeting income criteria defined under the scheme
What are the income norms for EWS and LIG categories?
The income norms for EWS/LIG categories are defined as follows:
EWS households with an annual income up to Rs. 3 Lakh
LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh
What is the applicable interest subsidy and the loan amount?
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 15 years or during tenure of loan whichever is lower on the initial Rs. 6 Lakh. Any additional loan/s beyond Rs. 6 Lakh, will be at nonsubsidised rate.
How will I receive the interest subsidy benefit?
The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.
For example, the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.
*The above example is for illustration purpose only and will depend on the actual amount received or any changes done by NHB on the same.
What is the size of dwelling units under Credit Linked Subsidy Scheme?
The Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component should be up to 30 sq. m. for EWS category and up to 60 sq. m. for LIG category. However, the beneficiary can construct a bigger house.
Where can I apply for Credit Linked Subsidy Scheme (CLSS)?
You can apply for Housing Loan under CLSS at any Govt or private Bank branch.
Do I have to give any additional documents to avail this subsidy?
No, there is no additional documents except a Declaration of not owning a pucca house. Customers not having income proof would require to submit an Affidavit.
Is there any loan amount limit on this scheme?
No, there is no loan amount limit under this category of loans.
I have a small business, can I avail Home Loan under this scheme?
Yes, you can avail this facility, if you qualify for the income criteria defined under this scheme.
Illustration / Summary :
Pradhan Mantri Awas Yojana is a government subsidy scheme for families buying their first house, though there is no upper Loan Amount and Tenure cap for the scheme, however the subsidy benefit would be available on the initial Rs. 6 Lakh. It would be computed at a rate of interest of 6.5% p.a on a maximum amount of Rs. 6 Lakh or the loan amount whichever is lower for 15 years tenure with discounting rate of 9%. For 6 Lakh the interest subsidy comes to around Rs. 2,20,000. Hence an upfront subsidy of Rs. 2,20,000 would be claimed by the bank from NHB and the same would be adjusted against the outstanding amount in the Loan Account. The loan outstanding would reduce and result in lower EMI of approximately Rs. 2,000.
Under the PM Awas Yojna, differently-abled and older persons of the society will be given preference in the allotment of ground floors under the PM Awas Yojana Scheme. The housing units constructed under the scheme will also witness the use of more eco friendly, innovative and sustainable housing construction technologies.