Jun 132016

PM Awas Scheme

Prime Minister Awas Scheme comes with the purpose of building more than 2 crore houses across the country within 2022. This scheme is introduced by the Indian government to provide housing facilities for all of the citizens within the country. The scheme was launched by the Prime Minister of India on 2015.

PM Awas Scheme

  • PM Awas Scheme

The scheme was introduced in 2015 and it will conclude in 2022 when the government will ensure housing facilities for all. This is a bold step taken by the Indian government to provide affordable housing facilities to its citizens. The primary mission of this scheme would be providing housing facilities to the people belonging in economically weaker section (EWS) and low income group (LIG) of the society. The main recipients of this scheme will be the poor people and the people who can’t afford housing facilities. This scheme has set its vision to provide these people with housing facilities within 2022.

  • Objectives of PM Awas Scheme

  • Ensuring availability of house loan to the people belonging in EWS and LIG category of the society.
  • Providing housing facilities at an affordable rate.
  • Ensuring a house for all of the citizens.
  • To build 2 crore houses across the whole country and end the slum problem of the country.
  • Redevelopment of the slums.
  • Key Features of PM Awas Scheme

  • A financial assistance will be granted by the Central government and that can range from Rs. 1, 00, 000 -2, 30, 000. This financial assistance will be provided to the people belonging in EWS and LIG category so that they can afford a house.
  • This scheme is also known as a pro-woman scheme as applications from female beneficiaries will be accepted more often than not.
  • The government will give extra care to the differently able people and the aged people by providing them the preference for ground floor houses.
  • Government has ensured that they will provide financial assistance for interest rates on loans availed for the scheme. The financial assistance of interest rate will be 6.5%.
  • The government promises to build eco-friendly houses.
  • Phases of PM Awas Scheme

Here is a table below to showcase the phases and the course of action in those phases.

Phases Start Date End Date Course of Action
Phase I April, 2015 March, 2017 To provide 100 cities with affordable housing facilities by developing houses in those cities.
Phase II April, 2017 March, 2019 Apart from the 1st hundred cities which were provided in the 1st phase, this phase will provide additional 200 cities in India with housing facilities.
Phase III April, 2019 March, 2022 In this phase, the government aims to provide all remaining cities with housing facilities across the nation.
  • Eligibility for PM Awas Scheme

To avail this scheme, one has to belong in the EWS or LIG category of the society. According to the scheme, the EWS households are described as the households having a yearly income of not more than Rs. 3, 00, 000 and the LIG households are defined as the households having a yearly income of more than Rs. 3, 00, 000 to not more than Rs. 6, 00, 000.  Combined owners from the same family are also eligible for this scheme.

  • Beneficiaries of the scheme

The beneficiaries of this scheme would be the individuals from EWS and LIG category of the society who are seeking housing loans from banks and other institutions.  Mainly the beneficiaries of this scheme would be-

  1. Women
  2. People from Scheduled Casts (SC)
  3. People from Scheduled Tribes (ST)
  4. Economically weaker section (EWS)
  • How to apply

To apply for this scheme, one has to download the form for PM Awas Scheme online and then print it. After filling the form, one has to submit it in the concerned office.

  • Required Documents

To avail this scheme, an individual has to submit the required documents. The documents are dully filled in application form, self affidavit income certificate, pan card or voter ID card of applicant, nationality identification proof, proof of category, address proof and income proof. In other words, the applicants must have to provide the documents concerning his proof of identity, address and his earnings.

  • Loan under PM Awas Scheme

Under the PM Awas Scheme, ICICI will provide housing loans at a subsidized interest rate of 6.5% annually for the loan amount of Rs. 6, 00, 000 (Max) which is lot lesser than the general interest rate which is 10.5%.  This financial assistance will be credit-linked. Along with the subsidized interest rate, ICICI will also provide easy options of EMI.

  • How to apply for loans under PM Awas Scheme

The applicants will have to apply for housing loan offers directly. The applicants can apply for housing loans under Credit Linked Subsidy Scheme at any of the ICICI branch.

  • Subsidy Facility

  • The current interest rate of house loan is 10.5% whereas the subsidy facility under this scheme will provide an interest rate of 6.5% only.
  • The subsidy would be available for the construction of new houses as well as the addition of rooms, kitchen, toilet, etc to the existing house.
  • Subsidy will offer the people belonging in EWS and LIG with the chance to enjoy affordable housing facilities.
  • Urban poor people can avail the subsidy to construct houses and they will be offered with easy EMIs and a low interest rate.
  • Interest Rate

The interest rate for the people seeking house loans is 6.5%. The normal interest rate of house loan is 10.5%. It is actually a subsidized rate to help the EWS and LIG of the society.

  • Tax benefits under PM Awas Scheme

The government has exempted tax for the developers and the buyers under this scheme. The developers and the buyers have been released from their tax payments and they will not have to provide tax for this project. They have also been released from the 5.6% service tax.

  • Flat Size under PM Awas Scheme

The carpet area of the flat will differ as per the income group of the applicant. For the people of EWS category, the carpet area of the flat will be up to 30 square meters and for the people of LIG category, the carpet area will be up to 60 square meters.

  • Affiliated Banks

Almost all National Housing Banks (NHB) is affiliated with this scheme. To avail the home loan, it would be wise to visit the nearest NHB bank for an individual.

  • Benefits of PM Awas Scheme

  • Housing facilities for all
  • Special care to the differently able and old citizens
  • Subsidized interest rate for EWS and LIG
  • Special services for the women
  • Slum development
  • Extra Care to the people from Scheduled Casts and Scheduled Tribes
  • Building of 2 crore houses.

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