Housing for All Program: Understanding the Objectives and Benefits

To bridge the housing gap in India, the Government specified a Development Agenda in 2015. As per the agenda, 100 Smart Cities, 40 million dwelling units, 20 million affordable homes, slum rehabilitation, urban development and transformation, better infrastructure, as well as committed ‘Housing for All’, need to be accomplished by 2022.To fulfil this, the Government unveiled the ‘Pradhan Mantri Awas Yojana’ with a dual objective to provide housing for all and stir the economic activity. The two components of the scheme are:

PMAY Urban aims to provide housing for all in urban areas by 2022. It aspires to:

• Rehabilitate the slums with assistance from private developers
• Provide Credit-Linked Subsidy Scheme (CLSS) for weaker sections
• Encourage combined participation of public and private sectors
• Allow subsidy on house construction or enhancement

Low-income beneficiaries can avail interest subsidy on home loans up to ₹6 lakh. The subsidy is given over loan amounts under different sections in EWS, LIG, MIG I and MIG II, as per rules. Under this, there will be interest subsidy up to ₹9 lakh for MIG I and ₹12 lakh for MIG II; implying that for all loan amounts exceeding this, the difference will attract interest at the market rate. Also, an average central grant of ₹1 lakh is given under the Slum Rehabilitation Programme. Eligibility: The scheme will extend to all 4041 statutory towns and will be implemented in a phased manner. Any person who is looking to purchase, construct or renovate a home is eligible for the scheme benefits. However, it must be their first house in the urban area.

PMAY Gramin is a rural housing scheme which aims to provide a pucca house (25-sq meter) to beneficiaries. Under this, the assistance of ₹1.20 lakh in plains and ₹1.30 lakh in hills is provided to eligible beneficiaries. The programme also extends to provide essential amenities to the beneficiaries, including 90 days of unskilled labour and an elective loan of ₹70,000 for the house construction. Eligibility: The scheme covers all rural areas except Chandigarh and Delhi. A person who is homeless or has a dilapidated house in a rural area can apply for the benefit. The selection is made by the Gram Sabha in consideration with the Socio-Economic and Caste Census (SECC).The PMAY strives to provide for housing for all Indian citizens, while also enhancing private sector partnership, creating more jobs, increasing material consumption and enhancing the economic activity.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.