In the 10th edition of 'Dhan ki Baat', Monu Ratra, CEO, India Infoline Housing Finance Ltd. informs about the benefits of Pradhan Mantri Awaas Yojana.
"Pradhan Mantri Awas Yojana – Housing for All (Urban)" takes you closer to your dream of owning a house. It provides you with the requisite support needed to build a home. The project will be implemented till 2022 and it provides central assistance to implementing agencies for providing houses to all eligible families/beneﬁciaries.
The mission seeks to address the housing requirement of the urban poor including slum dwellers through following programme verticals:
Under this program, slum redevelopment is implemented using Central or State Government's land as resource. Extra TDR/FSI/FAR is required to make these schemes financially operable.
Under this program, housing provision to the economically weaker section is ensured by States and Union Territories by partnering with public and private sectors. This can be done through public agencies or even through private industries, etc. All EWS houses constructed under this program are eligible for Central Assistance to the tune of Rs 1.5 lakhs each.
Under this category, families enjoy Central Assistance of Rs1.5lakh for the construction/enhancement of their houses. However, such projects need to be approved by SLSMC before commencement. The assistance amount is paid out by state governments in 3-4 installments depending on the construction status of the house. However, the last installment will be paid only after the construction is complete.
CLSS has two sub-schemes namely EWS/LIG and MIG (MIG 1 & MIG 2) based on Income Criteria of the Beneficiary family/household.
EWS/LIG - Scheme is effective from June 17, 2015 & valid till year 2022.
MIG - Scheme is effective from January 01, 2017 which is valid till year 2019.
Beneficiary Family/Household means Husband, wife and unmarried children. An adult earning member irrespective of its marital status be considered as separate household.
Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identiﬁed as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Accordingly, the CNAs have entered into Memorandum of Understanding (MOU) with various PLIs.
|CNAs||MOU signed with PLIs for implementation of EWS/LIG||MOU signed with PLIs for implementation of MIG|
Mr. Monu Ratra is the CEO of India Infoline Housing Finance Ltd. Mr Ratra is a veteran in the mortgages industry with nearly two decades of experience. Mr Ratra has been associated with brands like HDFC Ltd., ICICI Bank and Indiabulls Housing. Prior to joining India Infoline Housing Finance Ltd., his last assignment was with Indiabulls HFC as National Business Manager. Mr. Ratra has been a part of the pioneering teams leading various functions to provide excellence through process and quality initiatives, contributing to industry-leading growth. While with the last company, his efforts and vision led to building of a growth sales structure, starting from a scratch, in a start up like environment.
At IIFL Home Loans, Mr. Ratra brings strong focus on developing and delivering customer satisfaction with ease and low turnaround time. Mr Ratra is passionate about building stronger businesses, adapting and aligning company with new technology and digital era, and maintaining everlasting culture of customer centricity.
The Pradhan Mantri Awas Yojna, came into force in June, 2015 and will continue until 2022. This mission is to build 2 crore houses targeting all eligible poor families and beneficiaries across all states and union territories. The mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:
Except for the credit-linked subsidy (which falls under the Central Sector Scheme), rest all other programs are part of Central Sponsored Scheme. The states and the union territories have been given liberty to formalize and execute the scheme as per the standard guidelines defined by the mission so that it is implemented in a timely manner without any delay.
Housing Shortage in urban area (as per technical report of Ministry of Housing and Urban Affairs) is 18.78 million in 2012. 95-96% in EWS/LIG
|EWS||LIG||MIG 1||MIG 2|
|Annual Household Income||Upto 3 Lakhs||300001- 600000||600001-1200000||1200001-1800000|
|No Pucca House anywhere in India||Applicable||Applicable||Applicable||Applicable|
|Carpet Area||30 Sqmtr*||60 Sqmtr*||120 sqmtr||150 sqmtr|
Beneficiary may construct a larger house, however, interest subsidy would be limited to 30 and 60 sqmtrs only.
Household means Husband, wife and unmarried children. An adult earning member irrespective of its marital status is considered as separate household. Hence, female ownership may not be available in individual case.
Female ownership is mandatory under EWS/LIG scheme. Under MIG schemes female ownership is advisable, however, not mandatory.
To get CLSS benefit, property shall be in Urban Area and within the statutory towns and planning Area list as notified from time to time.
There are approx 4315 towns & planning Area (approx) basis 2011 census and as notified from time to time.
PMAY subsidy is calculated considering maximum loan tenure of 20 years
Loan can be of 25 or 30 years. 20 years is just a number used for calculation of subsidy.
EWS/LIG – 2.67 Lakhs
MIG 1 – 2.35 Lakhs
MIG 2 – 2.30 Lakhs
Please note that subsidy is dependent on two factors which are loan amount and Tenor.
Subsidy is adjusted and reduced from the outstanding loan amount. If a Home loan customer meets all the eligibility criteria set out under EWS/LIG, MIG 1 and MIG 2 scheme, subsidy is transferred immediately on receipt from NHB. Customer is duly informed about the subsidy.
National Housing Bank(NHB) and Housing and Urban Development Corporation (HUDCO) have been identified as Central Nodal Agencies (CNAs) by Ministry of Housing and Urban Poverty Alleviation (MoHUPA) for the purpose of implementation of this scheme. As a part of the implementation process, every Primary Lending Institution (PLI) needs will tie up with one of these CNAs.
PLI means Primary Lending Institutions which would help beneficiary get subsidy thru CNAs. The subsidy would be adjusted in loan account of beneficiary.
Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks are PLIs as on date or any other institutions as may be identified by the MoHUPA.
Preference under the Scheme will be given to Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, Minorities, Persons with disabilities and Transgenders subject to beneficiaries being from EWS / LIG segments.
States/UTs have the flexibility in terms of determining the size of house and other facilities at the state level in consultation with the Ministry but without any enhanced financial assistances from Centre.
No. Under the mission, a beneficiary family/household can avail of benefit of one component only that too once in lifetime.
Customers need not have to submit the claim neither to NHB nor to MoHUPA.
The interest subsidy would be paid by the Govt. which would be credited in the loan account upfront for lowering the EMI burden for the borrowers.
There is no loan limit under this scheme. However, interest subsidy would be computed on first 6 lakhs, 9 lakhs and 12 lakhs for EWS/LIG, MIG 1 & MIG 2 respectively.
PLIs signed MOU: - EWS/LIG – total 250 PLI signed MOU till Oct 31, 2017.
MIG – Total 235 PLI signed MOU till Oct 31, 2017.
As on date NHB has disbursed subsidy to 63,434 beneficiaries /household with total subsidy of Rs. 1271 crore under CLSS.
Yes, the Beneficiary may close the loan after receipt of subsidy. In this case subsidy need not be refunded.