Pradhan Mantri Awas Yojana (PMAY)
Housing is one of the basic social conditions that determine the quality of life and welfare of people and places. Rapid urbanization has placed remarkable strain on housing and services land in the urban areas. The Pradhan Mantri Awas Yojana was launched on 25 June 2015 by the Hon’ble Prime Minister Sri Narendra Modi to address this strategic need. It aims to construct about 2 crore houses in the country from 2015 to 2022. People who will be benefited through this scheme include: homeless citizens, poor urban people and citizens belonging to EWS and LIG categories.
Pradhan Mantri Awas Yojana (Urban) has implemented Credit Linked Subsidy Scheme for EWS/LIG (CLSS for EWS/LIG) in order to expand institutional credit flow to the housing needs of the urban poor.
It aims to construct about 2 crore houses in the country from 2015 to 2022.
- Beneficiaries of Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy.
- Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions (PLI), resulting in reduced effective housing loan and Equated Monthly Installment (EMI).
- The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
- Preference is given to manual scavengers, women (with overriding preference to widows), persons belonging to SC / ST / OBC, Minorities and Persons with disabilities and Transgender community.
Home Ownership
The houses constructed/acquired under the PMAY – Urban scheme should be in the name of a woman of the household or in joint ownership with her husband, and only in case when there is no adult female member in the family, the house can be in the name of male member of the household.
Coverage
All Statutory Towns as per Census 2011 and towns notified subsequently, including planning area as notified with respect to Statutory Town.
Purpose
New construction, acquisition and addition of rooms, kitchen, toilet etc. to existing dwelling as incremental housing.
Beneficiaries
- Beneficiary family will comprise husband, wife and unmarried children.
- The beneficiary family should not own a pucca house in the name of any member of the family in any part of India.
- EWS Households – annual income up to Rs. 3,00,000/- .
- LIG Households – annual income between Rs. 3,00,001/- up to Rs. 6,00,000/- .
- MIG 1 – annual income between Rs. 6 – 12 lakhs.
- MIG 2 – annual income between Rs. 12 – 18 lakhs.
Subsidy and Loan details
- EWS/LIG – Interest Rate Subsidy of 6.5% for a loan amount up to Rs. 6,00,000.
- MIG 1 – Interest Rate Subsidy of 4% for a loan amount up to Rs. 9,00,000.
- MIG 2 – Interest Rate Subsidy of 3% for a loan amount up to Rs. 12,00,000.
- There is no cap on the loan amount or the cost of the property; however the subsidy wont apply to the additional loan amount.
Note: Assessment of your eligibility to avail the benefits of CLSS Urban is at the sole discretion of the Government of India. Contents herein are parameters outlined under the scheme for assessment of entitlement.
Home Buying Documents
When you are planning to buy your dream home, you are getting ready for a significant investment. It involves major paperwork in terms of securing a home loan from the bank and registering the property in your name.
Right from providing documents to your bank to acquiring several documents to take ownership of the property, we have to get ready for a lot paperwork.
Depending on who is buying the property, the documentation varies. You may purchase the flat in your name, jointly with your wife, or in the name of your business organization. We are listing the primary documents that you would require in this article below:
KYC - Resident of India
- Identity Proof: Copy of PAN Card – Self Attested.
- Residence proof: Driver’s License / Passport / Voters ID Card / Aadhaar Card – Self Attested.
- Photo Proof: Passport-size photographs are required per applicant.
Ownership - Private Limited Company
- Authorization: A Board Resolution authorising one of the directors to be the authorized signatory of the property buying process to sign various documents.
- Identity Proof: Copy of the PAN Card of the Company attested by the authorized signatory.
- Articles of Association & Memorandum of Agreement duly signed by the company authorities.
- Photo Proof: Passport-size photographs of the authorized signatory to buy property on behalf of Company.
Ownership - Partnership Firm
- Identity Proof: Copy of PAN Card of the Partnership Firm – attested by Partners.
- Address Proof: Copy of Partnership Deed.
- Authorization: An Authority letter signed by other partners of the Partnership Firm authorizing one of the Partners to sign and do all the operations on the firm’s behalf.
- Photo Proof: Passport-size photographs of the partner authorized to sign on behalf of Partnership Firm.
