Pradhan Mantri Awas Yojana Urban

Pradhan Mantri Awas Yojana is a government scheme introduced in 2015 by the Prime Minister of India, Shri Narendra Modi. PMAY urban scheme is a sub-scheme of the 

Yojana focuses on eradicating poverty by providing housing facilities to the less privileged section of the country in the urban areas. 

Pradhan Mantri Awas Yojana was introduced with the Housing For All (HFA) mission in the country. The main objective of the mission is to help the less privileged ones with poor backgrounds to improve their lifestyles and lead the life of their dreams. Two sub-schemes of the PMAY Yojana evolved when it was introduced in 2015- Pradhan Mantri Awas Yojana Urban and Pradhan Mantri Awas Yojana Rural/ PMAY Gramin. These two schemes focus on different areas of the country.

PMAY urban scheme mainly focuses on those who reside in marginal urban areas. Providing houses to eligible families is the main objective of the scheme.

Providing them with houses with water connectivity, electricity, proper toilets, and other necessities is the primary goal of the Pradhan Mantri Awas Yojna Shahri. Eradicating poverty is another of the priority goals of the scheme which eventually leads to the economic development of the country in the bigger picture. 

The Prime Minister Awas Yojana (PMAY) is a scheme introduced by the Prime Minister of India in 2015. It aims at helping the less privileged section of the country to have a dignified and hygienic lifestyle. The main objective of the scheme is to help a big part of the country to have a dignified lifestyle that will eventually help in the growth of the country in general from a socio-economic perspective.

Prime Minister Awas Yojana Shahri addresses one of the major issues in the country- the shortage of pucca houses in rural and urban places in India. Several sections have evolved as parts of the main scheme to make the path easier for the future- Affordable Rental Housing Complexes (ARHCS), Global Housing Technology Challenge, and CLSS Awas Portal. The scheme contains two major sub-schemes- 

1. Pradhan Mantri Awas Yojana Urban (PMAY-U)- It is targeted to those who live in the urban space of the country and come from less privileged families and currently fall under the low income/ medium income groups.
2. Pradhan Mantri Awas Yojana Rural (PMAY-G)- This scheme targets those who reside in the rural spaces in the country. It aims at providing affordable houses to the rural less-privileged people with houses that have water connections, electricity, proper toilets, and other basic necessities.

The PMAY urban scheme is a sub-scheme of the Yojana that mainly focuses on those who have a lower income and come from a less privileged background in the urban spaces. Urban housing is the main focus of the scheme that focuses on the betterment of the lifestyle of thousands of people who do not have a proper house with sanitary systems, water connection or electricity.

Additional Info: 10 Important FAQs About Pradhan Mantri Awas Yojana

The PMAY Urban scheme has unique features and offers several benefits to the customers. Make sure you go through the features of the scheme before you apply for the loan.

• The Pradhan Mantri Awas Yojana Shahri/ urban is granted to those who are intending to buy a new house or extend an already-existing one.
• In the middle of the tenure of a home loan, you can decide to shift your home loan to another bank if you wish.
• Women applicants are given preference over men applicants in this scheme. They are encouraged to be homeowners or co-applicants.
• Those who belong to the low-income group, economically weaker group, and middle-income group are eligible to apply for the scheme.
• The PM Shahri Awas Yojana grants home loans to those who are single earners of their families and are first time buyers of homes in India.
• As part of the scheme, houses are built with eco-friendly technology and materials that cause no harm to the ecosystem.
• Those who apply for the scheme must have valid bank accounts, Aadhaar cards, and permanent account numbers.
• The UTs (State/Union Territories) have the authority to determine a cut-off when it comes to the eligibility of the PMAY urban beneficiaries.
• If you decide to shift your loan to another lender in the middle of your tenure, no benefits of the PM Awas Yojana Shahri scheme
• The progress of your house will always be tracked as per the policies under the BLC component of the PMAY urban scheme.
• If you already have another home loan to repay, you will not be eligible to apply for this scheme.

• In order to be eligible for the Pradhan Mantri Awas Yojana Urban scheme, beneficiaries should not own a pucca house in any part of the country. 
• Even if the applicant has family members who own pucca houses in any part of the country, they will not be eligible.
• For married couples, individuals and joint ownerships are allowed to avail of this scheme.
• Only those who belong to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group- I (MIG- I), Middle Income Group-II (MIG II) sections are eligible to apply for this scheme.
• The property that you buy with the scheme has to have amenities including sanitation, water, electricity, sewerage, roads, and other basic necessities.
• Applicants should have valid Aadhaar cards to apply for this home loan scheme successfully.
• Those who decide to switch the loan to another lender during the tenure cannot claim any benefits after transferring.
• In the case of a home loan balance transfer, only the loans that have been availed on or after January 1, 2017, can be transferred to another lender during the tenure.

These are the major PMAY urban eligibility points to keep in mind if you are intending to apply for the scheme soon.

• A family that includes a wife, a husband, sons and daughters who are not married
• Someone who is the single owner in a family can be considered to be a PMAY scheme beneficiary irrespective of their marital status. However, if they already own a pucca house, they are not eligible to apply for the loan.
• Those who are members of the Economically Weaker Section (EWS) - who earn less than 3 lakh per year.
• Those who earn around 3 lakh to 6 lakh per year come under the Low Income Group (LIG).
• Families that earn up to 12 lakh to 18 lakh come under the Middle Income Group-II (MIG- II).
• Families that earn around 6 lakh to 12 lakh come under Middle Income Group-I (MIG- I).
• Women who fall under the LIG and EWS income groups are also encouraged to apply for the PMAY scheme. 
• Castes such as OBC, ST, and SC are eligible to apply for the loan.

Take a look at the chart to understand the differences between the rates applied to different people from different backgrounds and incomes.

The home loan scheme differs from one person to the other based on their monthly income and other details. 

Make sure you compare and analyse the difference between the rates before applying for the PMAY urban scheme.

The Pradhan Mantri Awas Yojana Shahri contains several sub-components and sub-schemes that are implemented by the ministry of India to make sure the goal of the scheme is fulfilled.

The major components that the PMAY Urban contains are listed below:

1. In-situ Slum Redevelopment (ISSR)

As per the ISSR component, central assistance of 1lakh is granted to those who construct new houses. The state holds the flexibility to deploy assistance for other slums that are being redeveloped.

        2. Beneficiary-led Individual House Enhancement/ Construction (BLC-N/ BLC-E)

Central assistance of around 1.5,00,00 is provided to those who belong to the EWS group for individual house building/extension of an existing house.

        3. Affordable Housing in Partnership (AHP)

As per the AHP component, central assistance of up to 1.5 lakh is provided to the EWS groups. State and cities also have the flexibility to extend other concessions, including land at affordable cost state shares, stamp duty, etc., to the borrowers
 

        4. Credit Linked Subsidy Scheme (CLSS)

Those who belong to the EWS section/ LIG section or the MIG- I and MIG- II group are eligible to take home loans for an interest subsidy of 3% to 6.5% for a loan amount of six lakh nine lakh, or 12,00,00 depending on their demands.

The major documents that one must keep while applying for the Pradhan Mantri Awas Yojana scheme include:

• Proof of address – Aadhar card, voter card, property tax documents, life insurance policy documents, etc.
• Proof of identity – voter card, Aadhaar card, PAN card, passport, driving license (anyone document).
• Proof of income – bank statements for the last six months, salary slips of the previous two months.
• Having a PAN card is mandatory when applying for the scheme.
• For self-employed people, factory/firm establishment certificates, sales tax receipts and other documents confirming the existence of the workplace need to be submitted.
• Property documents- rent agreement on stamp papers, sales agreement, property registration certificates, copy of payment receipts of the builder (if required).