Why Pradhaan Mantri Awas Yojana was initiated by the Central Government?

Introduction

India has an ever-growing population with a developing economy. A lot of citizens reside in miserable conditions. They dream of having a decent house with all the amenities.

The Government of India recognized the demand for housing. As a path towards development, they initiated a scheme in 2015. It was “Pradhaan Mantri Awas Yojana”. The scheme covered the EWS, LIG & MIG category people in rural and urban areas.

EWS stands for Economically Weaker Society. They belong to an unreserved category of society. These people have an income of less than 8 lakh per annum.

LIG stands for Low Income Group. These households have an annual income of between Rs.3 to 6 lakh.

MIG stands for Middle Income Group. It includes the households with an income of Rs. 6 to Rs.12 lakh annually.

Let’s read all about PMAY.

What is Pradhan Mantri Awas Yojana?

The Ministry of Housing and Urban Affairs implemented a flagship mission for Indian citizens. It was Pradhan Mantri Awas Yojana. The scheme came into action from 25th June 2015.

PMAY focused on the shortage of urban housing for the EWS/LIG & MIG category. The scheme chooses a demand driven approach. Besides this, State/ Union Territories perform demand assessment through which the shortage of housing is decided.

The PMAY is divided into two types as per the region. They are-

• Pradhaan Mantri Awas Yojana Gram/ Rural (PMAY-G/R)

It focuses on the issue to provide a house for all rural people living in India.

• Pradhaan Mantri Awas Yojana Urban (PMAY-U)

It focuses on the issues of house shortage for EWS & MIG in urban areas.

There are numerous bodies that play a crucial role in the success and application of PMAY. These bodies are-

• Urban local bodies
• Central Nodal Agency
• State level Nodal Agency
• Primary leading institutions, and
• Implementing Agencies.

What is CLSS- Credit Linked Subsidy Scheme?

There are numerous people who fall under the EWS/LIG AND MIG I & II category. These people seek loans from

• Banks,
• Private institutions and
• Housing finance companies.

To aid them, the CLSS was launched under the PMAY. It provides subsidies for new houses and additional housing.

It provides a total loan of up to Rs 6 lakh at 6.5% interest rate for EWS & LIG. The MIG-I gets the loan of up to Rs.9 lakh at the interest rate of 4%. Besides this, the MIG-II gets the loan of upto RS.12 lakh at the interest rate of 3%.

Note:If there are any additional loans, it will be provided at a non subsidized rate.

What is the scope of PMAY?

The urban area mission ”Housing for all” aims to offer central assistance for all the scheme application agencies. It ensures to provide a house to all the people who are qualified for the scheme.

What are the perks of PMAY?

The perks of PMAY are-

• A house of ground-floor for differently able persons and senior citizens.
• Subsidized home loan at interest rate for a period of 20 years. It is provided to all the scheme eligible applicants.
• Built environment friendly homes for Indian citizens.
• Provide solid residence for slum dwellers of in situ rehabilitation.
• Offer affordable housing for people of different society sections.

What are the typical features of the PMAY?

• Housing units with electricity, water, toilet and kitchen for all weather.
• Empowering women via the clause of co-ownership.
• Better life quality of urban poor
• Sufficient social and physical framework.
• Ownership security.

What are the components of PMAY (U)?

There are three components of the PMAY(U). They are-

In-situ Slum Redevelopment (ISSR)

There are some eligible slum dwellers under the component of ISSR. The component uses land as a resource with the assistance of private announcements. There is guidance under the guideline of PMAY. The guideline states that after redevelopment, denouncement of slums is done by the State/Union Government.

Under this component, central assistance of Rs.1 Lakh is provided to all the allowed houses. The states/cities are given the resilience to perform other re-development of slums. There is an addition of the FSI/FSR or TDR for the states/ cities to make projects financially workable.

For privately owned land slums, the FSI/FSR or TDR is provided to land owners of cities/states. It is as per the scheme policy.

BLC- Beneficiary Led Construction

The central Government provides support of up to Rs. 1.5 lakh per EWS house. This assistance is for EWS category households.

The recipient submits the building plan and the urban local bodies verifies the information.

AHP- Affordable Housing Partnership

The AHP includes private and public sector related agencies. Under it, 35% of the construction is done for the EWS category.

The Central Government provides help of up to Rs. 1.5 lakh per EWS house.

What is the eligible criteria under the PMAY?

The eligible criteria under the PMAY are as follows-

• The applicant/household should not have a pucca house in any region of the nation.
• He/She should not hold central or state help under any other house scheme from the Indian Government.
• One adult female member should be included in the property ownership. She should be a co-partner of the property.

What are the categories of beneficiaries?

• The EWS(Economically weaker section) of urban residence should have annual income of up to 3 lakh.
• The LIG (Low Income Group) should have a yearly income in between Rs 3 lakh – Rs 6 lakh.
• The MIG-I yearly income should range from Rs 6 lakh – Rs 12 lakh.
• The MIG-II should have yearly income from Rs 12 lakh – Rs 18 lakh.
• The womens’ who are under the LIG & EWS category.
• The minority applicant should be as per the census data of caste and socio-economic. It includes the following:
  • Free bonded laborers
  • Schedule tribes
  • Non SC/ST & minorities under below poverty line.
  • Schedule caste
  • Paramilitary forces widows
  • Blood relatives and widows of ex-servicemen.

What is the application process for the PMAY?

You can apply for the PMAY in both offline and online mode. In online mode, you need to follow the steps mentioned below:

1. Visit the official site of PMAY.
2. Verify your Aadhaar card.
3. Fill up the application form by putting your particular information.
4. Tap on the “save” button.
5. A system generated application number is sent to the applicant.

In offline mode, you need to perform the following activities:

1. Visit the nearby Common Service Center.
2. Duly fill up the application form.
3. Attach all the required documents.
4. Submit it at the center.

What are the documents required under the scheme?

You will require the below-mentioned documents for the scheme:

1. Appropriately filled and signed application form
2. Identity proof
3. Income evidence
4. Address proof
5. Salary slip if the applicant is employed on a salary basis.
6. The IT return, balance sheet, etc. if the applicant is self-employed.
7. Property related documents.

Conclusion

The PMAY scheme has played an important role to offer affordable housing for all Indian citizens. It has fulfilled the assumed growth of urbanization and demand for a house in India.

As per Ministry of housing and urban affairs, 122.69 lakhs houses are sanctioned with the central assistance of 118020 cr.