PMAY Urban

PMAY U or Pradhan Mantri Awas Yojana Urban is a home loan subsidy scheme launched by the Central Government that functions in the urban areas to promote affordable urban housing to the economically weaker class in these areas. The scheme applies to all States and Union Territories. PMAY-U was launched on June 25, 2015, and aims to provide “Housing for All” by 2022.

The PM Awas Yojana Urban offers home loan subsidy schemes to four income groups.

• Economically Weaker Section: EWS is the income group earning up to ₹ 3 Lakh per annum. Applicants under this category can avail interest subsidy of up to 6.50% for a maximum home loan amount of up to ₹ 6 Lakh.
• Lower Income Group: LIG or the Lower Income Group is the income category earning in the range of ₹ 3 Lakh to ₹ 6 Lakh per annum. Applicants can avail of an interest subsidy of up to 6.50% for a home loan amounting up to ₹ 6 Lakh.
• Medium Income Group I: MIG-I is the income group earning a maximum annual income ranging from ₹ 6 Lakh to ₹ 12 Lakh. People falling within this income group can avail interest subsidy of 4% for a maximum loan amount of ₹ 9 Lakh.
• Medium Income Group II: MIG-II is the income group earning a maximum annual income between ₹ 12 Lakhs to ₹ 18 Lakh. MIG-II group holders can avail of a home loan of upto ₹ 12 Lakh with a minimum interest subsidy of 3%.

The eligibility criteria for PMAY urban scheme are

Parameters	MIG 1	MIG 2	Lower Income Group	Economically Weaker Section
Household Annual Income	₹ 6 Lakh to ₹ 12 Lakh	₹ 12 Lakh to ₹ 18 Lakh	₹ 3 Lakh to ₹ 6 Lakh	Upto ₹ 3 Lakh
Annual Subsidy	4%	3%	6.5%	6.5%
Eligible Loan amount for Interest Subsidy (₹)	₹ 9 Lakh	₹ 12 Lakh	₹ 6 Lakh	₹ 6 Lakh
Maximum Repayment Tenure	Max 20 years	Max 20 years	Max 20 years	Max 20 years
Maximum Amount of Subsidised Interest	₹ 2.35 Lakh	₹ 2.30 Lakh	₹ 2.67 Lakh	₹ 2.67 Lakh
Maximum Dwelling Unit’s Carpet Area (in sq. m.)	160	200	60	30

Currently, the applicable guidelines for PMAY Urban 2022 are:

• The PMAY applicant's family can be inclusive of husband, wife, and unmarried sons and daughters.
• The applicant and none of his family members must own a pucca house under his or her name.
• Apart from that, it must be ensured that the applicant must not have previously availed any assistance related to home loans by the Central or State Government.
• In case there are adult earning members in the house, they would be considered a separate household if they do not own a pucca house registered under their names.
• All family members must have an Aadhaar number to be provided during the loan application.
• Married couples applying for PMAY can own only a single house, whether jointly or individually.

The credit-linked subsidy is 6.5% for loan amounts of up to ₹ 6 Lakh. All in the range of ₹ 12 Lakh per annum will avail a subsidy of 4% of the ₹ 9 Lakh amount. All in the range of ₹ 18 Lakh per year will get a grant of 3% subsidy for the loan balance of ₹ 12 Lakh. This extends to loans with a 20-year tenure. Loan amounts beyond the official subsidised amount are not entitled to avail interest subsidy.

The net present value or popularly known as NPV, is the interest subsidy amount. This is computed using a discount rate of 9 per cent. The interest subsidy reduces the value of your debt and the amount of your interest too.

PMAY - U Subsidy Calculation
PMAY-U subsidy calculation is determined based on the income group of the applicant and the home loan rate of the lender. This can be well understood via an Illustration.

Suppose, Mr. A gets a home loan of ₹ 9 Lakh at an interest rate of 8.45% at an annual income of ₹ 8 Lakh . In this case, Mr. A falls under the income group MIG 1 and can avail a subsidy of ₹ 2.35 Lakh on home loan interest rates. Thus, the revised loan amount would be Rs 6.65 Lakhs. Opting for a PMAY subsidy will lead to a total savings of ₹ 3,48,960 over a tenure of 10 years.

Parameters	Regular Home Loan	PMAY Subsidy
Loan Amount	₹ 9 Lakh	₹ 9 Lakh
Loan Tenure	10 Years	10 Years
Applicable Interest Rate	8.45%	8.45%
Subsidy Amount		₹ 2.35 Lakh
Revised Loan Amount	₹ 9 Lakh	₹ 6.65 Lakh
Revised EMI	₹ 11,135	₹ 8,227
Savings on EMI		₹ 2,908
Total Savings		₹ 3,48,960

Applicants can apply for PMAY - Urban scheme through online and offline methods.

Online Method

Applicants must first understand the applicability of the PMAY scheme before applying online.

Based on their location on economic strata, individuals from the following groups can avail the advantage offered under the PMAY-U. Below is the step-by-step guide to apply online for PMAY-Urban:-

• After identifying the group, you are qualifying for PMAY, visit the official website http://pmaymis.gov.in.
• Select the applicant group and click on 'Citizen Assessment' from the main menu.
• Applicants will be forwarded to another page where their aadhaar information needs to be entered.
• Enter your personal, income and bank account information and your current residential address with the online PMAY application.
• Please enter the captcha code, verify the details.
• Applicants can track the applicant progress later by pressing "Track your assessment status" in "Citizen Assessment".

Offline Method

Applicants can apply offline for PM Awas Yojana by filling out the application form at the State Governments' Common Service Center (CSC). Applicants will have to pay ₹ 25 plus GST for the application form. It should be remembered that no private person or organisation can make money for availing benefits under this scheme.

Some of the salient features of PMAY (Housing for All) - Urban

• PMAY subsidy benefits can be availed for constructing a new house.
• PMAY-U benefits are offered for constructing a new house or enhancing an existing one.
• Women applicants are offered an additional discount on subsidy.
• The States/Union Territories can determine the cut-off date for eligibility PMAY beneficiaries.
• Eco-friendly materials and technology are used for constructing the house.
• PMAY beneficiaries are required to have Aadhaar Card/ Bank Account Number/ Permanent Account Number (PAN Card).
• All constructed houses must have a required infrastructure of power & water supply and drainage facilities.
• BLC component of PMAY HFA Urban will track the progress on the houses through geotagged photographs.

✅How Can I Check my PMAY-U List?

You can check your PMAY-U List by following the below mentioned steps:

• Visit the official website pmaymis.gov.in.
• Click on 'Select Beneficiary' and select 'Search by Name' from the drop-down menu.
• Click the tab 'select beneficiary' and choose from the drop-down menu 'Search by Name'.
• Provide the Aadhaar number.
• You will find the details of the beneficiaries if your Aadhaar number is available in your account.

✅How to Apply for PMAY-U?

You can apply for PMAY-U through both offline and online methods. To apply through an offline method, visit the local branch of your bank or Common Service Centre, fill in the application form and submit it. To apply online, visit the official website http://pmaymis.gov.in/ and fill in the application form and its details.

✅Is Pradhan Mantri Yojana Urban Available to Existing Home Loan Borrowers?

The Pradhan Mantri Awas Yojana - Urban subsidy scheme is available for those purchasing a property for the first time. The most important criterion for a PMAY subsidy is that the applicant doesn't own a pucca house in India. Therefore PMAY is not an option on an existing home loan.

✅How Can Urban Residents Get a House under PMAY - Urban?

Ensuring getting a house under PMAY Urban, the urban residents must ensure that at least 35% are allotted for construction for economically weaker sections and have at least 250 affordable housing units. Apart from this, applicants have to fulfil individual income eligibility criteria as well. For MIG 1, the carpet area is 120sq.m, MIG 2 150 sq.m, EWS is 30 sq.m and LIG is 60 sq.m.