A Survey for PM Awas Yojana

 The main reason that brought the idea of affordable housing schemes in India is fast paced urbanization. As urbanization in cities advanced the standard of living which further gives rise to the cost of living. Therefore, citizens of India who especially migrate from rural areas to urban areas are not able to meet the gap between their owning capacity in monetary terms and city’s cost of living. They end up living in rented houses, houses under construction, indecent houses without proper or basic necessary facilities or they live in slums. At one hand where we see growth and urbanization in the cities on the other hand we see accumulation of slums. Builders and developers in urban cities concentrate on building high end and luxury projects and it gets difficult for economically weaker section (EWS) and lower Income group (LIG) to own a house in these areas. There need to be some solution to the problem.

 The vision of our Honorable Prime Minister, Mr. Narendra Modi for ‘Acche Din in India’ brings ‘Housing for all’ scheme. To construct affordable houses where all standardize residential facilities will be provided in one place. There are 305 cities in total 9 states of India to see construction of affordable houses under PMAY, especially for urban poor.

 The Housing for All Yojana will provide component of Credit Linked Subsidy on home loans to those who fall under the category of EWS and LIG with an interest subsidy at the rate of 6.5 % for tenure of 15 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.

 A Pradhan Mantri Awas Yojna (PMAY eligible family comprises a husband, a wife and unmarried children. Eligible family 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.Pradhan Mantri Awas Yojna

 The scheme will provide a credit linked subsidy of Rs 1.00 Lakh to 2.30 Lakh to the home buyers. 1. The subsidy will be generated by central government treasury. 2. Credit linked subsidy granted to LIG and EWS segments of urban population. 3. Subsidiary is being implemented as a Central Sector Scheme whereas other components as Centrally Sponsored Scheme (CSS).

 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 are 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.

 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 ICICI Bank branch.  Do I have to give any additional documents to avail this subsidy?  No, except a declaration of not owning a pucca house, there are no additional documents. Customers not having income proof would require submitting an Affidavit.  Is there any loan amount limit on this scheme?  No, there is no loan amount limit under this category of loans.

 Pradhan Mantri Awas Yojana  Minus One, Raheja Mall, Sohna Road, Gurgaon –  Phone  -  Website-