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Guidelines on Pradhan Mantri Awaas Yojana

In the 10th edition of 'Dhan ki Baat', Monu Ratra, CEO, India Infoline Housing Finance Ltd. informs about the benefits of Pradhan Mantri Awaas Yojana.

2950 views  1 Dec 2017

Pradhan Mantri Awas Yojana – Affordable Housing for All

"Pradhan Mantri Awas Yojana – Housing for All (Urban)" takes you closer to your dream of owning a house. It provides you with the requisite support needed to build a home. The project will be implemented till 2022 and it provides central assistance to implementing agencies for providing houses to all eligible families/beneficiaries.

The mission seeks to address the housing requirement of the urban poor including slum dwellers through following programme verticals:

  • Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
  • Promotion of Affordable Housing for weaker section through Credit Linked Subsidy Scheme (CLSS)
  • Affordable Housing in Partnership with Public & Private sectors
  • Subsidy for beneficiary-led individual house construction /enhancement.

Slum Rehabilitation

Under this program, slum redevelopment is implemented using Central or State Government's land as resource. Extra TDR/FSI/FAR is required to make these schemes financially operable.

Affordable Housing in Partnership

Under this program, housing provision to the economically weaker section is ensured by States and Union Territories by partnering with public and private sectors. This can be done through public agencies or even through private industries, etc. All EWS houses constructed under this program are eligible for Central Assistance to the tune of Rs 1.5 lakhs each.

Beneficiary-led individual house construction or enhancement

Under this category, families enjoy Central Assistance of Rs1.5lakh for the construction/enhancement of their houses. However, such projects need to be approved by SLSMC before commencement. The assistance amount is paid out by state governments in 3-4 installments depending on the construction status of the house. However, the last installment will be paid only after the construction is complete.

Credit Linked Subsidy Scheme (CLSS)

CLSS has two sub-schemes namely EWS/LIG and MIG (MIG 1 & MIG 2) based on Income Criteria of the Beneficiary family/household.

EWS/LIG - Scheme is effective from June 17, 2015 & valid till year 2022.

  1. Annual Household/beneficiary family Income shall not exceed Rs6lakh
  2. The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India.
  3. Adult female head of the family/household shall be owner/co-owner in the property.
  4. The Carpet Area of the property shall be up to 30 & 60 sqmtr in case of EWS & LIG, respectively. However, beneficiary can construct a bigger house but the subsidy would be limited to 30 & 60 sqmtrs only.
  5. Property shall fall within the list of statutory towns.
  6. Beneficiary family is eligible for an interest subsidy at the rate of 6.5 % for a tenure of 20 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 %.
  7. Credit Linked Subsidy for EWS/LIG is available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at non-subsidized rate.

MIG - Scheme is effective from January 01, 2017 which is valid till year 2019.

  1. Annual Household/beneficiary family Income shall be b/w Rs. 6-12 lakhs under MIG 1 & 12-18 Lakhs under MIG 2.
  2. The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India.
  3. Female ownership advisable, however, not mandatory.
  4. Property shall fall within the list of statutory towns.
  5. The carpet Area of the property shall not exceed 120 & 150 sqmtr in case of MIG 1 & MIG 2 respectively.
  6. Beneficiary family is eligible for an interest subsidy at the rate of 4 % in case of MIG 1 & 3% in case of MIG 2 for tenure of 20 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 %.
  7. Credit Linked Subsidy for EWS/LIG is available only for loan amounts up to Rs 9 Lakh & 12 Lakh for MIG 1 & MIG 2 respectively and additional loans beyond the specified amount, if any, will be at non-subsidized rate.

Beneficiary Family/Household means Husband, wife and unmarried children. An adult earning member irrespective of its marital status be considered as separate household.

Setup

Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Accordingly, the CNAs have entered into Memorandum of Understanding (MOU) with various PLIs.

CNAs MOU signed with PLIs for implementation of EWS/LIG MOU signed with PLIs for implementation of MIG
NHB 183 176
HUDCO 67 59
Total 250 235