PMAY- its features and benefits for the homebuyers
For those who wish to buy their first home, PMAY can be seen as a boon which can help you save up to 2.67 lakhs* of rupees in the EMI interest paid on home loans. Few of the recent projects of JSB such as JSB Spring Field, JSB Jyoti Residency and JSB Serene Tower are covered under PMAY (Urban) scheme and buyers can take a huge advantage of this affordable housing scheme while buying their dream home. Yet we understand that very little is known about PMAY. So, we have written this blog to explain the basic tenants of PMAY(Urban) and how it can benefit homebuyers, especially those who fall in the MIG category.
What is PMAY?
Launched on 25th June 2015, the PMAY or Pradhan Mantri Awas Yojana is a scheme offering affordable housing to all. It is one of the flagship missions of the Central Government of India and implemented by the Ministry of Housing and Urban Affairs (MoHUA). The mission of PMAY is to provide affordable houses/flats to all those who fall in the EWS, LIG and MIG categories.
What do EWS, LIG and MIG categories stand for?
- EWS stands for Economically Weaker
- SectionLIG stands for Low Income Group
- MIG stands for Middle Income Group
What are the criteria of EWS, LIG and MIG categories for the scheme?
Individuals of any one of the following categories should have a certain annual income to benefit from PMAY. For instance, EWS households should have an annual income of Rs. 3 lakhs, whereas LIG households should have between Rs. 3 lakhs to Rs. 6 lakhs and MIG should have Rs. 6 lakhs to Rs. 12 lakhs (MIG-I) or Rs. 12 lakhs to Rs. 18 lakhs (MIG-II)
What is PMAY (Urban)?
PMAY urban scheme also written as PMAY (U) addresses urban housing shortage among the EWS, LIG and MIG categories by ensuring a home to all eligible urban households by the year 2022.
Is the PMAY scheme similar nationwide?
With different states following their specific guidelines, the PMAY mission offers us the flexibility to choose from its four options to meet the housing demands. Accordingly, each state can formulate, approve and implement the project under the various schemes.
- In-Situ Redevelopment: Lands are leveraged in urban areas to utilise and construct residential establishments for slum dwellers
- Affordable Housing in Partnership: The government partners with both public and private sectors to develop affordable housing projects for beneficiaries.
- Credit Linked Subsidy Scheme: Popularly known as CLSS, this scheme offers an interest subsidy of up to 6.5% on home loans. Additionally, beneficiaries can also apply for home loans for a tenure of 20 years.
- Enhancement and construction of beneficiary-led house: EWS category of individuals who are ineligible on the above PMAY schemes can receive the “enhanced and construction of beneficiary-led” financial aid of up to Rs. 1.5 lakhs from the GOI.
Under which scheme are JSB Jyoti residency, JSB Spring Field and JSB Serene Towers covered?
All the three projects are covered under credit link subsidy scheme under PMAY (Urban) – Credit Linked Subsidy Scheme (CLSS).
What is the CLSS scheme?
The Credit Linked Subsidy Scheme was introduced for the MIG category of people and approved in 2017. Under this PMAY scheme, the beneficiaries of the EWS, LIG and MIG categories seeking home loans can enjoy interest subsidy of up to 2.67 lakhs per dwelling unit/flat. However, it must be noted here that the amount of interest subsidies varies depending on the income category a homebuyer belongs to.
What are the interest subsidies available to MIG category?
The scheme offers up to 6.5% subsidy rate to each beneficiary taking housing loans for a tenure of 20 years. There are different categories to the home loan interest rate subsidiaries as well:
- The credit linked subsidy at 4% will be available for loan amount up to Rs. 9 lakhs in case of MIG-I. Though the Banks can sanction home loans more than Rs. 9 lakhs but the subsidy will be restricted to Rs. 9 lakhs only.
- The credit linked subsidy at 3% will be available for loan amount up to Rs. 12 lakhs in case of MIG-II. Though the Banks can sanction home loans more than Rs. 12 lakhs but the subsidy will be restricted to Rs. 12 lakhs only.
- The maximum subsidy-eligible on home loan interest rate is Rs. 2.35 lakhs for homebuyers under MIG-I and 2.30 lakhs for the MIG-II category.
Is there any other benefits that we can seek while buying JSB homes under the CLSS scheme?
Yes, under PMAY CLSS scheme, you can also get up to 4% GST* rebate on the current 5% GST while buying a flat or unit with the carpet area less than 90 sq. mts. Hence the effective rate of GST will be 1%. JSB Spring Field, JSB Jyoti Residency and JSB Serene Towers are the projects where you can look for units with carpet area under 90 sq. mts. and enjoy the rebate in the GST.
Is PMAY made available in the state of Assam?
Like every state, the Prime Minister Awas Yojana is also available in Assam and caters to both rural and urban areas. In Assam the CLSS scheme has another component named Apun Ghar Scheme . Under this scheme government employees can seek home loans with an interest rate subsidy of 3.5% up to Rs. 15 lakhs for a duration of 20 years. An applicant must be employed in any government department for minimum 5 years to be eligible under this scheme.
What are the eligibilities for becoming beneficiary for the PMAY (Urban) scheme?
The eligibility for each homebuyer is unique depending on their household income and what class or category they belong to out of EWS, LIG and MIG. However, we are noting down few of the eligibilities below for homebuyers belonging to MIG category.
The beneficiaries have been defined as a family comprising of husband, wife and unmarried children.
- In case of married couple, either of the spouses or both together in joint ownership will be eligible for a single dwelling unit, subject to income eligibility of the household under the scheme.
- The carpet area of house under this Scheme should be up to 160 sq. mts. for MIG-I beneficiaries and up to 200 sq. mts. for MIG-II beneficiaries.
- To check whether or not you fall into the beneficiary category, click on the official Pradhan Mantri Awas Yojana website.
Conclusion
JSB Infrastructures is an award-winning real estate company, dedicated to developing high-quality yet affordable properties in Assam. We have been constructing high-end gated communities in Upper Assam with projects at Tinsukia and Dibrugarh for the past 10 years. To get an insight into our projects, visit JSB Infrastructures- Projects
Conditions applied* :
- The amount of interest subsidy varies depending on the income category a homebuyer belongs to.
- GST rates and all other rates of subsidy may vary in the future as per the updated government norms related to the scheme.