Having your own house is among the most important things in life. It provides you with a sense of belonging, financial security, and protection. However, with real estate prices increasing more and more every day, building your home is not a cakewalk. In order to help the weaker sections of society achieve this dream, the Government of India has launched the Pradhan Mantri Awas Yojana and made EWS housing affordable.
Lower-income groups and economically weaker sections can claim interest on their housing loans from the government for acquisition, construction, improvement, and extension.
Under this scheme, all the construction materials are eco-friendly, use sustainable technology, and the scheme follows strict eligibility criteria. For EWS housing, you can take a loan for 20 years at an interest rate subsidized at 6.5%. Ground floor homes will be allotted to the differently-abled and senior citizens. The construction for EWS housing will strictly adhere to the guidelines as per the National Building Code and BIS codes.
The complete construction will take place in 3 phases and will cover 4041 towns and urban areas. Under Class 1, there are 500 cities that will be preferred.
Key parameters for EWS housing
|Particulars||Criteria for EWS|
|Annual household income||Under Rs 3 lakhs|
|Annual interest subsidy||6.5%|
|Eligible housing loan for interest subsidy||Up to Rs 6 lakhs|
|Maximum loan tenure||20 years|
|Maximum dwelling unit carpet area||30 sq. meters|
|Discount rate for Net Present Value (NPV)||9%|
|Maximum interest subsidy amount||Rs. 2,67,280|
|Woman ownership/co-ownership||Compulsory for a new purchase, not compulsory for an existing property|
|Approvals for building designs||Mandatory|
Eligibility for EWS housing
To be able to apply for EWS housing, you must meet the following criteria set by the Government of India:
- The annual income of your household should not be more than Rs. 3 lakhs.
- You or anyone from your family should not own a pucca house in any part of the country.
- You or your family should not have availed of any housing scheme from the Government of India or your state government.
- You or any of your family members should not have benefitted from any PMAY-CLSS subsidy from Private Lending Institutions (PLIs).
- If you and your partner apply for EWS housing and get selected, you will be allocated one house. You can also apply for joint ownership.
- You must hold Indian citizenship and be over 18 years of age.
EWS housing beneficiary
The beneficiary family for EWS housing consists of a husband, his wife, and unmarried children. Regardless of marital status, an adult earning member can be considered a separate household.
What is Credit Linked Subsidy Scheme (CLSS)?
Credit Linked Subsidy Scheme (CLSS) is a kind of financial assistance offered to the economically weaker, lower-income, and medium-income groups under Pradhan Mantri Awas Yojana. With CLSS, you can borrow home loans at reduced Equated Monthly Installment (EMIs).
The interest subsidy is credited in advance to the beneficiary family on the sum amount. This results in lower EMI and makes the home loan affordable. It depends on the area of the property and the tenure of the home loan.
Benefits of EWS housing
Targets slum rehabilitation
The primary purpose of EWS housing is to replace slum houses with concrete/pucca ones. This will help slum residents pick urban settlements over residential localities and use land that has lost its value over the years due to its environment.
Housing to all
Pradhan Mantri Awas Yojana’s main objective is to provide affordable and permanent housing to everyone. EWS housing construction has started in many states, such as Maharashtra, West Bengal, and Tamil Nadu. The government wants to better people’s standard of living and eliminate poverty to a great extent through these houses.
Subsidised interest rates
The credit linked subsidy scheme can significantly increase institutional lending inflows. This will allow the economically weaker sections and low-income groups of the society to purchase a house at lower interest rates, resulting in a much lower EMI.
Any woman over the age of 18 and with Indian citizenship can apply for EWS housing. As per the scheme, if a man wishes to borrow a loan, then he must register his wife as the applicant. This is done to provide women with a sense of financial security, especially those who are old and widowed.
With EWS housing, no section of society will be left without a home. This includes everyone belonging to Scheduled Caste (SCs), Scheduled Tribe (STs), and Other Backward Classes (OBCs). Women, senior citizens, widows, and members of the transgender community are also included.
All the houses built under this scheme are constructed using eco-friendly raw materials and sustainable technology. This minimises environmental harm around the construction area, like damage from air and noise pollution. Instead, the houses are made using top-quality and durable materials. This also helps to prevent remodelling for a long time.
How to apply for EWS housing?
You can apply for EWS housing through both online and offline methods.
To apply for EWS housing online, you only require a valid Aadhar.
Step 1: Open the official website of Pradhan Mantri Awas Yojana (PMAY) at https://pmaymis.gov.in/.
Step 2: Click on the Citizen Assessment option on the Main Navigation Menu on the home page.
Step 3: Click on Apply Online from the drop-down box.
Step 4: Choose the option you fall under for PMAY.
Step 5: A new page will open. Here, enter your name and Aadhar number.
Step 6: Check the box given below to show you agree to share your Aadhar.
Step 7: Click on Check.
To apply for EWS housing offline, go to a Common Service Center (CSC) and fill the form for the same. The cost of this application form is Rs. 25 + GST.
How to view the beneficiary list?
Step 1: Open the official website of Pradhan Mantri Awas Yojana (PMAY) at https://pmaymis.gov.in/. The home page will open.
Step 2: Click on Search Beneficiary on the Main Navigation Menu.
Step 3: Click on Search by Name.
Step 4: Enter your Aadhar number.
Step 5: Click on ‘Show’. You will be able to view the beneficiary list.
Documents required for EWS housing
- Proof of age, such as your birth certificate, PAN card, school leaving certificate, insurance policy, and driving license.
- Affidavit cum declaration to prove you or your family members do not own any pucca house.
- Identity proof, such as Aadhar card, PAN card, driving license, etc.
- Copy of address proof, such as property registration documents, voter ID, bank statements, and property tax receipt.
- Each family member’s salary proof documents like salary slips of the last three months, yearly increment letter, appointment letter, and certified copy of Form 16.
- Income proof documents, such as a copy of your bank statements for the past 6 months.
- Existing loan details through your bank statements.
- No Objection Certificate (NOC) from any housing society
- Processing fee cheque, this is to be issued from the salary account of employed applicants and business account for self-employed ones.
- Letter of allotment of property or agreement to sale.
Who is eligible for EWS housing?
To be eligible for EWS housing, the annual income of your household should not exceed Rs. 3 lakhs, you should not own a pucca house in any part of the country, you should not have availed of any housing scheme from the Government of India or your State Government, you should not have benefitted from any PMAY-CLSS subsidy, and you must hold Indian citizenship and be over 18 years of age.
What is the main purpose of EWS housing?
The main objective of EWS housing is to provide affordable and high-quality homes to everyone, especially the vulnerable sections of society.
What are the documents required for EWS housing?
The documents required for EWS housing include proof of age, affidavit cum declaration to prove you or your family members do not own any pucca house, identity proof, such as Aadhar card, PAN card, driving license, etc., copy of address proof, income proof document, existing loan details, No Objection Certificate (NOC) from any housing society, processing fee cheque, and a letter of allotment of property or agreement to sale.