All you Need to Know about Pradhan Mantri Awas Yojna (PMAY) Urban
Pradhan Mantri Awas Yojna Urban, abbreviated as PMAY-U, is a flagship program of the Indian Government. The Ministry of Housing and Urban Affairs (MoHUA) administers this program under the prominent leadership of Prime Minister Narendra Modi.
The program was first launched on 25th June 2015 with the sole mission of addressing urban housing issues in the country. The project aimed at providing all-weather pucca houses to urban Middle-Income Groups (MIG) and Economically Weaker Sections (EWA)/Lower Income Groups (LIG) by the year 2022. The scheme applies to all the urban areas in India, including Notified Planning/ Development Areas and all statutory towns as of the Census of 2011.
The Government of India sanctioned a 2,03,427 crores budget to develop 123 lakhs houses in the urban area. As of August 2022, 62 lakhs houses have been completed, while 40 lakh houses are under construction. The Government further received proposals from the States/UTs for 40 lakh houses during the last 2 years of the scheme, owing to which the project timeline has been extended till 31st December 2024.
PMAY-U Progress Statistics
The table below provides the statistics reflecting the progress of the Urban Awas Yojna Scheme as of 10 October 2022.
|Construction of Houses (number in Lakhs)||Demand||Sanctioned||Grounded/Under Construction||Completed/Delivered|
|Financial Progress (Rupees in Lakhs)||Committed||Released||Expenditure||UC Received|
Verticals of PMAY Urban
States/UTs/Central Nodal Agencies are responsible for connecting all the eligible beneficiaries to the urban PMAY scheme. These agencies use four main verticals to effectively implement the Urban Awas Yojna, which are discussed below.
1. Beneficiary Led Construction/ Enhancement (BLC)
Under this scheme, eligible families from EWS categories may receive up to Rs. 1.5 lakh in central assistance, which they can use to build or improve their own homes. To be eligible for the benefit under this component, the existing home must have an addition of at least 9.0 square meters of carpet area.
The Urban Local Bodies verify the information and building plan provided by the beneficiary to confirm land ownership and other information like economic status and eligibility. Using the Direct Benefit Transfer (DBT) method, States and UTs can deposit Central Assistance and any applicable State, UT, and ULB shares straight into beneficiaries' bank accounts.
2. Affordable Housing in Partnership (AHP)
The Indian Government provides Central Assistance under AHP at Rs. 1.5 lakh per EWS house. However, a project for affordable housing will only be eligible for Central Assistance if at least 35% of the homes are for EWS households. It may include a variety of homes for various types of households.
The States and UTs establish an upper limit on the sale price of these homes to make EWS homes affordable and accessible to the intended beneficiaries. The state and cities also provide additional advantages like their State Share, reasonably priced land, and stamp duty exemption under this scheme.
3. In-situ Slum Redevelopment (ISSR)
By utilizing the untapped potential of the land underneath slums, In-Situ Slum Redevelopment seeks to integrate slum residents into the formal urban settlement. Under this scheme, every house constructed using land as a resource with the involvement of private developers is eligible for central assistance of Rs. 1 lakh per house.
The guidelines suggest that the State/UT Government de-notify slums after redevelopment. States and cities have the freedom to use this central assistance to redevelop other slums as they see fit. Further, states or Cities contribute more FSI/FAR or TDR to make projects financially viable. According to state or local policy, slums on privately owned land are given additional FSI/FAR or TDR to the landowner. However, in such a situation, no Central Assistance may be used.
4. Credit Linked Subsidy Scheme (CLSS)
Under this PM Awas Urban scheme, beneficiaries from EWS/LIG, MIG-1 and MIG-2 are provided housing loans up to Rs. 6 Lakh, Rs. 9 Lakh, and Rs. 12 Lakh at interest subsidy of 6.5%, 4%, and 3% respectively. To direct this subsidy to the beneficiaries through lending institutions and to track the progress, the Ministry has designated the Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB), and State Bank of India (SBI) as Central Nodal Agencies (CNAs). The CLAP portal significantly aids the Ministry in reducing complaints by streamlining the processes of the CLSS vertical.
Important Aspects of PMAY-U
To seek the maximum benefit of the Pradhan Mantri Awas Yojna Urban you must consider the following aspects of the scheme:
- Houses should have a maximum carpet area of 30 square meters and access to essential facilities like electricity, water supply, waste disposal, and sewerage following the mission. In addition, projects for affordable housing, partnership initiatives, and slum redevelopment should take into account the provision of basic civic infrastructure. Additionally, the States/UTs will be free to choose the house's size and other amenities at the State level in consultation with the Ministry, but without further financial support from the Centre.
- Along with the National Building Code (NBC) and other pertinent Bureau of Indian Standards (BIS) codes, homes constructed under the PMAY-U program must meet structural safety requirements against earthquakes, floods, cyclones, landslides, etc. In addition, toilets ought to be included in all newly built or expanded homes.
- The Awas Yojna Urban requires that all houses built or purchased with federal funding be jointly owned by the male and female heads of household or owned in the name of the female head of household. Only if there is no female adult family member may the house be registered in the name of the male family member.
Benefits of PMAY-U
The Urban Awas Yojna entails numerous benefits for people belonging to low-income groups, some of which are listed below:
- Based on the income slab, beneficiaries receive up to a 6.5% interest rate subsidy on housing loans.
- You can get a loan to build a house or buy a pre-owned house.
- The maximum term for loan repayment is 20 years.
- Priority for ground-floor housing will be given to senior citizens and specially-abled people.
- The buildings will make use of environment-friendly and sustainable technologies.
- You will have access to basic amenities like water, electricity, and gas supply.
Eligibility Criteria for Urban Awas Yojna
To qualify for government assistance, each applicant must meet the eligibility requirements established by the PMAY committee. Six different groups of potential applicants have been formed following this criterion, as illustrated below:
- Economically Weaker Section: EWS individuals fall into this category if their annual household income is under Rs. 3 lakhs. However, the applicant must offer sufficient evidence before the government to confirm their claims that they are from the EWS.
- Light Income Group: People who fall into the LIG category typically have a yearly household income of between Rs. 3 lakh and Rs. 6 lakhs. They must also provide sufficient evidence of their financial standing to seek housing benefits under PM Awas Yojna urban.
- Middle Income Group (MIG-1): The MIG1 classification applies to people with annual household incomes under Rs. 12 lakhs. For the construction of a home, these people are eligible for loans of up to Rs. 9 lakhs.
- Middle Income Group (MIG-2): People who fall under MIG2 of the PMAY program have annual household incomes of between Rs. 12 and Rs. 18 lakhs. Loans up to Rs. 12 lakhs are available to these people.
- Minorities: Minorities include people who are members of SC, ST, or OBC groups. These individuals must present the necessary caste and income certificates in to confirm their eligibility for the PMAY program.
- Women: Women belonging to EWS/LIG categories are also eligible to apply for the PMAY-U scheme.
Additional Guideline for Eligibility
Apart from following the PMAY Urban List of eligibility criteria, you must also consider the following eligibility specifications:
- A beneficiary family must have a husband, wife, and unmarried children.
- In no region of India should any of the family members be the owner of a pucca house.
- The intended recipients shouldn't have used financial aid from any other government housing programs.
- If an adult household member does not own a pucca house anywhere in India, they will be treated as a separate household (regardless of their marital status).
- Family members' Aadhaar numbers must be provided when applying for a loan.
- Married couples are permitted to own a single home either jointly or solely.
Necessary Documents for PMAY-U Application
The documents required for the PMAY-U application are:
- Aadhaar card
- Buyer builder agreement or ATS copy
- Sanction letter for the loan
- PAN card
- Stamp paper/affidavit
Application Process for PMAY-U
Before applying for the Pradhan Mantri Awas Yojana, you should explore the PMAY Urban List to check your presence under beneficiaries.
The process to Check your Name in PMAY-U List
To seek benefit from the Urban Awas Yojna you need to see if your name is there on PMAY Urban list. The process to check your name in the list is as follows:
Step 1: Go to pmaymis.gov.in
Step 2: Click on 'Search Beneficiary' from the top navigation panel, and you will be redirected to the search page.
Step 3: On the top navigation panel of the search page, click on 'Search' and a drop-down menu will appear. Select 'Search Beneficiary' from the menu.
Step 4: Enter your ADHAAR number and click on show.
Step 5: You can see beneficiaries' details if your Aadhaar number is listed in the database.
Online Application Process
For the Pradhan Mantri Awas Yojana - Housing for All, applications can be submitted online or offline. Online application enables more people to take benefit from this urban housing program. However, people can also apply offline for this scheme at a Common Service Centre (CSC) in their town.
But before applying you must know the two categories under which you can avail of the PMAY-U scheme; these categories are:
- Under Other 3 Components: EWS, MIG-1, MIG-2, and LIG are classified under the Housing for All by 2022 scheme of the PMAY-U program. The MIGs and LIG categories can only avail the CLSS vertical of the PMAY-U program, while the EWS category is eligible under all verticals for assistance.
- Slum Dwellers: Typically, a slum is a poorly built region with a population of about 300 people or 60-70 houses. The people in the slum live in unhygienic conditions due to a lack of proper infrastructure, drinking water, and sanitation facilities. These slum dwellers can apply for housing assistance under the Housing for All by 2024 scheme.
Once you know under which category your financial aid request falls, you can fill out the application form online following the step-by-step procedure given below:
Step 1: Log in to pmaymis.gov.in.
Step 2: On the top navigation panel, click on 'Citizen Assessment.' A drop-down menu will appear. Click on the applicable choice: 'For Slum Dwellers' or 'Benefits under other 3 components.'
Step 3: Enter your ADHAAR Card number and click on Check.
Step 4: You will be redirected to the application page. Fill in the application form with the necessary details.
Step 5: After filling in the information, click on save and fill in the Captcha code. Again, click on save to submit your application.
Subsidy Calculator Under PMAY-U
It is possible to calculate the discount you would be eligible for on a home loan obtained through the PMAY program using an application called a home loan subsidy calculator. You only need to enter the information about your loan, such as the interest rate, principal, etc., to calculate the subsidy on your PMAY scheme. Following that, the application will calculate the subsidy you would get from getting a home loan. Listed below are the steps to access the home loan subsidy calculator on the PMAY-U website.
Step 1: Visit pmaymis.gov.in.
Step 2: The Subsidy Calculator can be accessed by selecting "Subsidy Calculator" from the navigation panel. You will be redirected to the CLSS Awas Portal (CLAP).
Step 3: Enter the necessary information on the page, including the family income, loan amount, tenure, and other details.
Step 4: Your subsidy information will be generated and displayed on the page immediately.
Pradhan Mantri Awas Yojna-Urban is a thoughtful initiative undertaken to develop the housing infrastructure of the Urban areas. It aims to uplift the underprivileged people of society by providing them with well-designed pucca houses with access to all the basic amenities like water, sanitation, sewage, electricity, and gas supply.
The program is implemented in coalition with States and Union Territories to ensure efficiency and effectiveness. This initiative categorically addresses the needs of people by creating different schemes based on income category and living conditions. This categorization allows lower-income and middle-income households to avail the benefits of the housing scheme's benefits and secure interest subsidies in housing loans.
Furthermore, the scheme empowers women by mandating joint ownership of males and females in the PMAY-U-approved houses. Overall, the Awas Yojna Urban is an empowering mission that helps improve the living standards of the urban poor by providing them with the necessary aid to overcome their poverty-stricken living conditions.
Who is not eligible to avail of the PMAY-U benefit?
People who already own a pucca house in the urban region or have benefitted from the state/central initiated housing scheme in the past are not eligible for the urban Awas Yojna. Besides, if people have an annual family income of more than 18 lakhs, they are also not eligible to benefit from this scheme.
What does FAR stand for in the PMAY-U scheme?
FAR stands for the Floor Area Ratio. Precisely, FAR can be calculated using the below-given formula:
What does a Central Nodal Agency represent in the PMAY-U Scheme?
Certain direct concern offices have been designated as Central Nodal Agencies by the Housing Ministry of Housing & Urban Affairs or the Government to support and carry out the activities and functions concerning PMAY Credit linked subsidy.
Is it possible to sell the house acquired through the PMAY-U scheme?
The purpose of the PMAY-U initiative is to raise the living standard of the urban poor by allowing them to live in well-constructed pucca houses. Therefore, after acquiring a house under this scheme you cannot sell it within 5 years of buying it because the house is allocated for your welfare and well-being, not for resale purposes.