PMAY Urban Extension: Key Updates, Benefits & Impact

Housing is a basic need of life, but with inflation in land prices in India, it remains a fantasy for most. Pradhan Mantri Awas Yojana (PMAY) aids you in becoming a homebuyer on easy conditions and helps to make housing affordable to all.

PMAY-Urban Housing for All is one of the major flagship programs being executed by the Government of India. The scheme responds to the urban housing shortage among the EWS/LIG and MIG categories, including the slum dwellers, by securing a pucca house for all the entitled urban households by the year 2022 when the nation concludes 75 years of independence.

The scheme, launched on June 25, 2015, aims to give all-weather pucca houses to the eligible beneficiaries in the urban areas across the whole country. Urban areas cover all statutory towns as per 2011 Census and towns notified subsequently, including Notified Planning/ Development Areas. PMAY(U) follows a demand-driven method wherein the Housing inadequacy is decided based on demand assessment by States/Union Territories.

The key stakeholders playing a crucial role in the execution and triumph of PMAY(U) are State Level Nodal Agencies (SLNAs), Urban Local Bodies (ULBs)/ Implementing Agencies (IAs), Central Nodal Agencies (CNAs), and Primary Lending Institutions (PLIs).

The Union Cabinet, chaired by our hon’ble Prime Minister Shri Narendra Modi, has approved the Ministry of Housing and Urban Affairs (MoHUA) proposal. The proposal aimed to extend the Pradhan Mantri Awas Yojana-Urban (PMAY-U) scheme till December 31, 2024, wherein financial assistance is to be furnished for the completion of already sanctioned 122.69 lakh houses up to March 31, 2022, according to an official statement.

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In 2017, the original projected request was 100 lakh houses. Against this initial demand, 102 lakh houses have been under construction, and out of these, 62 lakh houses have been built.

The Central assistance granted since 2015 is INR 2.03 lakh crore against the INR 20,000 crore in 2004-2014. Up to March 31, 2022, a central subsidy of INR 1.18 lakh crore has already been given, and approximately INR 85,000 crores will be given till December 31, 2024.

Features and Benefits PMAY Scheme

• The subsidised rate of interest, extended by the scheme, is up to 6.5 % on housing loans provided to all beneficiaries applying for loans with a tenure of up to 20 years.
• However, interest rate subsidy changes based on the income levels:
• Up to 6 lakh per annum - Credit-linked subsidy of 6.5% will be granted for loan amounts up to Rs 6 lakhs.
• Up to 12 lakh per annum - People making up to Rs 12 lakh per annum will get a 4% interest subsidy on a loan grant of Rs 9 lakh.
• Up to 18 lakh per annum - People drawing up to Rs 18 lakh per annum income category will be eligible for a 3% subsidy on a loan amount of Rs 12 lakhs.
• Any further loan beyond the subsidised loan amount will be at a non-subsidised rate of interest.
• Houses will be constructed using sustainable and environmentally-safe technologies.
• Under the PMAY scheme, elderly and differently-abled citizens can avail the preference of having a house on the ground floor.

You can enjoy the PMAY-U advantages if you want to buy a new house. You may even take a loan for the construction of your house. Moreover, you may be astounded to know that PMAY also applies for ameliorating a ‘kutcha’ house to a ‘pucca’ house under the Credit Linked Subsidy Scheme (CLSS) component.

The Key Beneficiaries under the PMAY scheme:

• Preference is given to SC, ST, OBC, PWDs, and transgenders.
• PMAY-Urban applies to debtors belonging to the:

1. Economically Weaker Section (EWS) - With annual family income of up to three lakh rupees.
2. Low Income Group (LIG) - With annual family income of up to six lakh rupees.
3. Middle Income Groups (MIG) - With annual family income of up to eighteen lakh rupees.

The Central Government has also made several provisions for trans-genders, widows, elderly people, and differently abled individuals.

The executive executes the scheme through four verticals: Beneficiary Led Construction/ Enhancement (BLC), In-situ Slum Redevelopment (ISSR), Affordable Housing in Partnership (AHP), and Credit Linked Subsidy Scheme (CLSS).

Must Read: How Much Time Does it Take to Get a PMAY CLSS Subsidy

The continuation of the scheme based on the request of States/Union Territories up to December 31, 2024, will help in the completion of already sanctioned houses under BLC, AHP & ISSR verticals.

In a nutshell, Pradhan Mantri Awas Yojana is an evolutionary step to help fulfil your aspiration of owning a home. It fills you with enthusiasm to seek a bank or a private housing finance company for a home loan, especially when the EMIs can turn out to be cheaper.

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