Under the Pradhan Mantri Awas Yojana (PMAY), the Constitutional rate of GST will be applicable on the construction of the house under the declared credit link subsidy scheme for EWS, LIG, MIG One and MIG One.
The GST exemption limit has been increased from 1 year to 3 years on viability gap funding received by the airport being built under the Regional Connectivity Scheme.
|Scheme Launced by||Central Government|
|Scheme Name||Pradhan Mantri Awas Yojana or Housing for all 2022 Scheme|
|Scheme Implemented by||2015 – 2022 (July 17, 2015 – APRIL 31, 2022)|
|Duration of the Scheme||7 Years|
|Eligible||EWS/LIG (Economically Weaker Section/ Lower Income Group)|
|Annual Income for EWS||₹3,00,000.00|
|Annual Income for LIG||₹300000 to up to ₹6,00,000.00|
|Credit-Linked Subsidy for EWS/LIG||YES|
GST and its implication on Affordable Housing segment: Customers are charged 12% as GST on the cost of under-construction flat. Accordingly, the cost of an Affordable Housing Flat of say Rs. 20 lacs will increase to Rs. 22.4 lacs, increasing the additional burden on home buyer.
Also, as GST cannot be considered as part of the value of property while availing the loan, the entire GST amount is required to be paid by the customer himself, thus increasing his own contribution to Rs. 4.4. lacs on a total cost of Rs. 22.4 lacs (this works out to 20% of the flat cost. In addition to this, customer also needs to pay processing fee, stamp duty insurance etc. taking the own contribution to about 30%).
Under the PMAY scheme, the application of the beneficiaries of the fourth category will be accepted and 50 thousand rupees will be transferred to the lump-sum account for the construction of the building. While the system was yet to take up the building after the application was accepted. The first installment foundation went after the foundation. This move of the government will benefit lakhs of people.
Under the new rules the beneficiaries will be given a second installment of Rs 1.50 lakh before the linter (roof). On completion of the construction work, 50 thousand rupees will be given as the last installment. Chief Secretary Manoj Kumar Singh has issued the order in this regard. In this way, a total of 2.50 lakh rupees will be given to help the beneficiary to build a house.
By March 31, 2018, 56.90 lakh beneficiaries have been sanctioned for the construction of 51 lakh houses. 51.39 lakh beneficiaries have got the first installment. 31.03 lakh beneficiaries have constructed the roof of their houses and the construction of 16.05 lakh beneficiaries is nearing completion. The highest number of beneficiaries of rural households in Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal is the highest. The people of these states have built their own houses within the stipulated time frame.
|Subsidies Explained||Earlier Scheme (2015) – CLSS for EWS/LIG||Revised Scheme (2017) – CLSS for MIG|
|Loan Amount||Up to Rs. 6 Lakh||Up to Rs. 9 Lakh||Up to Rs. 12 Lakh|
|Eligibility Criteria||EWS (Annual income of Up to Rs. 3 Lakh) and LIG (Income of up to Rs. 6 Lakh per annum). Women to be the co-owner along with the beneficiary.||MIG 1 – Up to Rs. 12 Lakh per annum||MIG 2 – Up to Rs. 18 Lakh per annum|
|Subsidy Calculation for a loan tenure of up to 15 years||6.5%||4%||3%|
|Subsidy Amount||Rs. 2.2 Lakh for a loan of 6 lakh||Rs. 2.35 Lakh for a loan of Rs 9 Lakh||Rs. 2.3 Lakh for a loan of Rs. 12 Lakh|
|Interest Rates and Subsidy|
|Loan Amount||Rs. 12 Lakh||Rs. 9 Lakh or More||Rs. 12 Lakh or More|
|Amount Eligible for Subsidy||Rs. 6 Lakh||Rs. 9 Lakh||Rs. 12 Lakh|
|Subsidy Amount||2.2 Lakh||2.35 Lakh||2.3 Lakh|
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
A beneficiary family will comprise husband, wife and unmarried children. The beneficiary family should not own a pucca house (an all weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India.
STEPS TO APPLY for HOUSING FOR ALL 2022 – PMAY SCHEME
Step1. Firstly logged into the official website i.e. http://mhupa.gov.in
Step2. Find and Open ‘Schemes/Missions‘ section visible on web page.
Step3. Click on to the ‘Pradhan Mantri Awas Yojana‘ link given under this section.
Step4. Now download the ‘Application form for Housing for All 2022‘ link visible on web page.
Step5. Now fill all mandatory details asking in application form and submit form to the concern department.
The EMI to be paid on the loans taken for this scheme will be reduced to significant amount under this scheme. The housing loan currently are available at a interested rate of 10.50%. As per the calculation, the EMI on such loan of ₹6 lakh for 15 year time would comes out to be ₹6,632.39. As per the PM Awas Scheme, due to 6.50 subsidy the new EMI will be ₹4050. So there is a benefit of ₹2000 in the EMI itself.
Component 1 – Central Grant of ₹1 Lakh(Average) would be provided to the beneficiary.
Component 2 – Subsidy of 6.50 % will be provided to EWS & LIG via credit linked subsidy scheme.
Component 3 – Central Assistance of ₹1.50 lakh will be provided to each beneficiary for promoting housing stock for urban poor, provided 35 percent of dwelling units of the projects proposed are earmarked for EWS category.
Component 4 – Central Assistance of ₹1.50 lakhs will be provided to eligible urban poor, who can build new house or undertake improvements of existing houses.
PRADHAN MANTRI AWAS YOJANA LOAN EMI CALCULATOR
EWS households are defined as households having an annual income up to ₹3,00,000. States/UTs shall have the flexibility to redefine the annual income criteria as per local conditions in consultation with the Centre.
LIG households are defined as households having an annual income between ₹3,00,001 up to ₹6,00,000. States/UTs shall have the flexibility to redefine the annual income criteria as per local conditions in consultation with the Centre.
A compact area of at least 300 population or about 60-70 households of poorly built congested tenements, in unhygienic environment usually with inadequate infrastructure and lacking in proper sanitary and drinking water facilities.
The credit linked subsidy will be available only for loan amounts upto ₹6 lakhs and additional loans beyond ₹6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).
The subsidy would be disbursed to the beneficiaries account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount.
An affordable housing project can be a mix of houses for different categories (EWS, LIG, and HIG etc) but it will be eligible for central assistance, if at least 35% of the houses in the project are for EWS category and a single project has at least 250 houses. CSMC, however, can reduce the requirement of minimum number of houses in one project on the request of State Government.
The PM Awas Yojana would start in the year 2015 and would be spread for implementation till the year 2022 and would be carried out in three sustainable phases:
Pradhan Mantri Awas Yojana Phase 1: The Phase 1 of PM Awas Yojana would span from April 2015 to APRIL 2017 and a total of 100 cities would see the developmental work started and completed during this phase.
Pradhan Mantri Awas Yojana Phase 2: The Phase 2 of Pradhan Mantri Awas Yojana would span from April 2017 to APRIL 2019 and during this phase, a total of 200 more cities would be covered and developed.
Pradhan Mantri Awas Yojana Phase 3: The Phase 3 of PMAY would span from April 2019 to APRIL 2022 and during this phase the left over cities would be covered and developed.
The Beneficiaries of Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana would target specific groups from the society, which are:
- Women, irrespective of caste and religion
- Economically Weaker Section of Society (EWS)
- Scheduled Tribes (ST)
- Scheduled Casts (SC)
The Government of India would be granting a subsidy to people from these categories so that they buy a home for themselves and their families. The subsidy amount may range from ₹1 lakh to ₹2.30 lakh.
USER SEARCH QUERIES ON PRADHAN MANTRI AWAS YOJANA – JANUARY 2019
|USER SEARCHES ON PRADHAN MANTRI AWAS YOJANA||RISING %||UPDATED ON|
|pmay scheme details in telugu||+200%||18.12.2018|
|pmay list 2018 west bengal||+80%||18.12.2018|
|pmay list 2018 rajasthan||+80%||18.12.2018|
|pmay helpline number||+80%||18.12.2018|
|pmay eligibility criteria||+80%||18.12.2018|
|pmay list west bengal||+60%||18.12.2018|
|pmay west bengal||+50%||18.12.2018|
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