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The Government of India initiated the Prime Minister Awas Yojana or PMAY housing scheme. Its objective is to provide affordable pucca houses to the urban poor. To commemorate India’s 75th year of Independence, the PMAY aims to provide homes for all by 2022.
Affordable houses shall be built in selected towns and cities employing eco-friendly construction methods to benefit the urban poor population in the country. Additionally, under this Pradhan Mantri Awas Yojana 2019, beneficiaries will be eligible for an interest subsidy if they avail loans for purchasing or constituting houses.
Beneficiaries Under the PMAY Scheme
Recipients of this housing scheme include –
- Economically weaker section (EWS), low-income group (LIG) and middle-income group (MIG). The annual household income for EWS is capped at Rs. 3 Lakh; while for LIG and MIG, it ranges from Rs. 3 Lakh to Rs. 6 Lakh and Rs. 6 Lakh to 18 Lakh respectively.
- The beneficiaries from the EWS income group are eligible for full assistance under this ‘housing for all’ scheme. For the low and middle-income groups, they’re only eligible for the CLSS (credit linked subsidy scheme) under PMAY 2019.
- To be recognised as an EWS and LIG income group, an applicant must submit an affidavit as income proof.
Features of PMAY Scheme:
- Under this Prime Minister Awas Yojana scheme, the subsidised interest rate of 6.5% per annum is provided on housing loans.
- This scheme will cover the country’s entire urban areas, including 500 Tier I cities and 4041 statutory towns in three phases.
- The Pradhan Mantri Awas Yojana loan will be provided by all leading financial institutes across the country.
Alternatively, you can also procure housing loans from leading NBFCs under PMAY scheme. For instance, you can avail a Home Loan from Bajaj Finserv that allows a loan amount of up to Rs. 3.5 Crore at attractive Home Loan interest rate. Furthermore, you can avail this loan with minimal documentation and repay over an extended tenor.
PMAY Scheme Objectives:
Recent estimates suggest that India’s urban population is increasing at an alarming rate, which is expected to touch 814 million by the year 2050. The major challenge would be to provide affordable housing to these increasing urban dwellers. Bearing this in mind, the Government of India launched this ‘housing for all’ scheme to create a sustainable and safe housing facility for these urban masses.
- The primary objective is to provide affordable houses to EWS, LIG and MIG income group, including the transgender community.
- Ground floor properties shall be handed over to the senior and differently-abled citizens.
- Registration under this beneficiary scheme requires including names of mothers or wives as mandatory.
The project intends to target the urban areas of Union Territories as well.
PMAY Eligibility Criteria
- Any household with the set annual income is eligible to apply under the Awas Yojana scheme.
- If a woman applies, no other demographic shall be considered in that case.
- Applicants from SC and ST category are also eligible.
- A beneficiary can only buy a new house under the PMAY scheme. No ‘pucca’ house must be owned by the recipient or any other member of the family at any part of India.
- One cannot avail a loan under the Prime Minister Awas Yojana scheme to renovate one’s property or built a second home.
Here’s why you should opt for a home loan from NBFCs – to revamp your existing house or build a second one without any hassle. You can easily avail loans from NBFCs that offers relaxed eligibility criteria, minimal documentation and competitive interest rates.