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Pradhan Mantri Awas Yojana – Urban is an initiative by the Government of India which ensures to provide housing for all in urban areas by the year 2022.

This scheme came into effect from 17th June 2015; moreover, it also provides assistance to the implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) to achieve the aim of providing houses to all eligible families/ beneficiaries against the validated demand for houses for about Rs. 1.12 crores.

As per PMAY(U) guidelines, the size of a house for Economically Weaker Section (EWS) can range up to 30 square meter carpet area, however, States/UTs have the authority to tweak the size of houses in consultation and upon approval of the Ministry.

Following the trail of the government’s constant efforts towards the empowerment of women from EWS and LIG, unlike earlier schemes, PMAY-U has made a mandatory provision for the female head of the family to be entitled as the owner or co-owner of the house.

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PMAY Urban – Key Features

The mission focuses to address the housing urban poor including slum dwellers’ requirements through the following initiatives:

  • Relocating the Slum Dwellers with the participation of private developers using land as a resource.
  • Promotion of Affordable Housing for weaker section of the urban areas through a credit-linked subsidy scheme (CLSS)
  • Affordable Housing in association with Public & Private sectors.
  • Subsidy for beneficiary-led individual house construction.

Eligibility Criteria of the PMAY Urban

The Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG), i.e. MIG I and MIG II, which was initially approved for implementation in the year 2017, was later extended up to March 2020. However, on May 14, 2020, the government again announced the extension of the deadline for the affordable housing CLSS scheme for one year, that is till March 2021.

Let’s check out the eligibility of PMAY-U, who is eligible for the MIG category within a family, who all can apply, how much is the subsidy provided in rupee terms and how is the subsidy impacting the loan amount.

The Middle-income Earners

The new category of MIG has slabs, viz. the MIG-I which will comprise of households having an annual income ranging from Rs 6,00,001 up to Rs 12,00,000.

The second Middle Income Group (MIG)- II will comprise of households having an annual income between Rs 12,00,001 to Rs 18, 00,000.

This means that anyone who is earning between Rs 6 lakh up to Rs 18 lakh per annum can avail of the subsidized loan benefits of given that all the other conditions are met.

Let’s understand this in a better way with the help of a table explaining the details of both MIG 1 and II

DetailsMIG I – PMAY UrbanMIG II – PMAY Urban
Household annual income6-12 lakh12-18 lakh
Loan amount for interest subsidy9 lakh12 lakh
Interest subsidy4%3%
Dwelling unit carpet area160 square meter200 square meter
Max loan tenure (in years)2020
NPV subsidyRs. 2.35 lakhsRs. 2.30 lakhs

Note: 1 sq mt = 10.7639 sq ft

The scheme is designed for providing a house for all. So, this implies that those who already own a home or any of their family members own a home cannot avail of the benefits of PMAY.

Subsidy

Individuals in the MIG – I category will be eligible for a 4% interest subsidy on a loan amount up to Rs 9 lakh, and in the case of the MIG – II slab, individuals will get a 3% subsidy on a loan amount up to Rs 12 lakhs.

In case an additional loan is needed, the lender will provide it but the additional loans beyond the subsidized loan amount will be provided at a non-subsidized rate.

Key Elements Related to the PM Awas Yojana Urban

Beneficiary: A beneficiary family consists of a husband, wife, and unmarried children. The beneficiary family should not have a pucca house in their name (an all-weather dwelling unit) in any part of India.

Central Nodal Agencies: Nodal Agencies are identified by the Ministry for the purposes of implementation of the Credit linked subsidy component of the scheme.

Implementing Agencies: These are the agencies such as Urban Local Bodies, Development Authorities, Housing Boards, etc. that are selected by the State Government/SLSMC for implementing PMAY HFA Urban mission.

Economically Weaker Section(EWS): EWS households are the households having an yearly income up to Rs. 3 lakhs. States/UTs shall have the flexibility to change the annual income criteria as per the local conditions in consultation with the Centre.

EWS House: EWS house can be defined as an all-weather single unit or a unit in a multi-storeyed superstructure having a carpet area of up to 30 sq. m. with adequate basic civic services and amenities like proper toilet, water facility, electricity supply, etc. States can evaluate the area of EWS as per their local needs with information to the Ministry.

As per the data of the Ministry of Housing and Urban Affairs, the pace of progress of PMAY-U in all states and union territories, as of 1st July 2019 are as follows:

PMAY (Urban) Progress

  • Sanctioned Houses: 96.57 lakhs
  • Grounded Houses: 60.95 lakhs
  • Completed Houses: 32.70 lakhs
  • Occupied Houses: 31.33 lakhs

Fund Sanctioned by Central Govt and Utilized

  • Central Assistance Released: Rs. 57914 crores
  • Total Investment: Rs. 570282 crores

How to apply for the PMAY scheme online?

Step 1 – Go to the PMAY official website, i.e. pmaymis.gov.in

Step 2 – Choose the ‘Citizen Assessment’ option and click on the appropriate choice: “For Slum Dwellers”

Step 3 – Enter your “Aadhaar Card” details

Step 4 – It will then redirect you to the application page, where you can fill out all the details correctly.

Step 5 – The details to be filled are name, contact number, other personal details such as bank account, and your income details, among others.

Step 6 – Once this step is completed, choose the ‘Save’ option and enter the given captcha code.

Step 7 – Finally, hit the ‘Save’ button. Your application is now complete; take a print out of the same

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