Pradhan Mantri Awas Yojana (PMAY): Can PMAY Homes Be Sold? And Other Common Queries

Pradhan Mantri Awas Yojana (PMAY) is a government-driven endeavour to secure affordable housing options across all societal segments, including the middle class. One of the recurrent inquiries pertains to the possibility of selling PMAY homes. This discourse comprehensively addresses this query and provides answers to pivotal FAQs related to the PMAY initiative.

Unravelling the Fundamentals of PMAY

The PMAY initiative encompasses various facets, including the Credit Linked Subsidy Scheme (CLSS), designed to alleviate the burden of home loan repayment for eligible beneficiaries. Before delving into the possibility of selling PMAY homes, let’s clarify the fundamental principles.

Frequently Asked Questions about PMAY

Q: What is PMAY?

A: PMAY stands for Pradhan Mantri Awas Yojana, a government initiative to provide housing for all, with a special focus on the middle class.

Q: What is CLSS?

A: CLSS refers to the Credit Linked Subsidy Scheme, in which the government provides subsidies to reduce the burden of interest payments on home loans.

Q: What do MIG, LIG, EWS, and UMI categories mean?

A: MIG 1: Middle Income Group 1 (Income – INR 6 lakh to INR 12 lakh per annum)

MIG 2: Middle Income Group 2 (Income – INR 12 lakh to INR 18 lakh per annum)

EWS: Economically Weaker Sections (Income – up to INR 3 lakh)

LIG: Low Income Group (Income – up to INR 6 lakh)

Q: How does PMAY work?

A: PMAY provides interest rate subsidies on home loans. For instance, a borrower from the MIG category purchasing an Rs. 60 lakh house would receive a 3% subsidy on the loan amount up to Rs. 12 lakhs. The standard home loan interest rate applies to the remaining amount.

Q: What is the maximum loan limit under PMAY?

A: There is no fixed maximum loan amount; eligibility depends on various factors. However, subsidy benefits are capped based on income brackets.

Q: What documents are required for PMAY?

A: Essential documents include the Aadhaar cards of all household members and a Notarized Affidavit cum Undertaking, as per IIHFl Credit Policy.

Q: Does PMAY involve any processing fees?

A: Obtaining a home loan under Pradhan Mantri Awas Yojana does not entail processing fees.

Q: Are there size restrictions for homes under PMAY CLSS?

A: There are no size limitations for homes, but the scheme covers a carpet area of 30 sq. m. for EWS beneficiaries and 60 sq. m. for LIG beneficiaries.

Q: What is meant by carpet area?

A: Carpet area refers to the enclosed space within walls, excluding the thickness of inner walls.

Q: Can subsidy applications extend to plots or Kutcha house owners?

A: Eligibility criteria related to income and property ownership must be met, allowing application if lacking ownership of a solid house.

Q: How many interest subsidies can be availed under PMAY?

A: MIG 1 and MIG 2 beneficiaries receive interest subsidies of 4% and 3% on loan amounts up to specific limits, respectively.

Q: Can multiple PMAY components be utilised simultaneously?

A: No, beneficiaries can avail of benefits from only one component.

Q: How can one maximise subsidy benefits?

A: Eligibility for maximum subsidy necessitates specific disbursal amounts, income categories, and loan durations.

Q: Can someone with an undeveloped plot benefit from PMAY?

A: If eligible, subsidies can be obtained for constructing individual homes.

Q: Can a PMAY home be sold?

A: Homes acquired through PMAY cannot be sold within five years of acquisition, as the program aims to provide affordable housing to those genuinely in need.

Conclusion

The PMAY scheme offers significant advantages to individuals seeking affordable housing solutions. While the prospect of selling PMAY homes is relevant, the scheme’s core objective of serving genuine beneficiaries remains paramount. The government’s imposition of a five-year retention period ensures the preservation of the scheme’s intent, ensuring affordable housing is extended to those requiring it.