With the increasing real estate rates, most individuals find it difficult to afford a property of their own. Hence, to address the issue and make home purchase more affordable for all the sections of society, the Indian Government introduced Pradhan Mantri Awas Yojana (PMAY) in 2015. The scheme allows intending home loan borrowers to avail interest subsidies on home loans and purchase “pucca” houses. Besides, it also entails various other benefits that individuals need to know besides learning about what is PMAY.
What is PMAY?
Pradhan Mantri Awas Yojana promises “housing for all” to all eligible beneficiaries by 2022. This benefit applies to applicants belonging to the financially weaker section of society. The applicants are divided into different groups- Economically Weaker Section (EWS), Middle Income Group (MIG I and MIG II), and Lower Income Group (LIG). The PMAY benefits also include women, senior citizens, scheduled castes and tribes, and members of the transgender community.
Under this PMAY scheme, the government aims to fulfil the housing requirements of underprivileged individuals and improve their living standards. Following are the programmes through which eligible candidates can be benefitted:
- Credit Linked Subsidy Scheme (CLSS)
- In-situ Slum Redevelopment (ISSR)
- Beneficiary-led Individual House Construction (BLC-N/BLC-E)
- Affordable Housing in Partnership (AHP)
Each of these plans proffers different benefits to PMAY beneficiaries. Therefore, the eligible candidates need to know about them while applying for PMAY scheme.
Benefits of PMAY
To avail the advantages of PMAY, individuals first need to meet PMAY eligibility criteria. It offers a subsidised interest rate on home loans for new construction or enhancement of the existing ones under CLSS scheme.
Besides, it also proffers other benefits that you need to know apart from what is PMAY.
- Subsidised interest for every citizen
One of the biggest benefits of PMAY is the subsidy provided on a home loan to purchase a new house. However, to avail of this PMAY subsidy, one must not own a home anywhere in India. The subsidy available for different income categories is mentioned below.
- For individuals falling under the EWS/LIG category, interest rate subsidy is 6.5% on a home loan tenor of up to 20 years.
- For individuals belonging to MIG I category, the interest rate subsidy available is 4% on a loan amount of Rs.9 lakh for 20 years.
- For MIG II category people, interest rate subsidy available is 3% on principal amount of Rs.12 lakh for the same tenor.
- Housing development in every part of the country
The benefits of this program are not restricted to urban areas. This scheme provides equal importance to rural development. Apart from uplifting the living standards of low-income groups, the scheme ensures improvement in the rural real-estate sector and related industries.
- Advantages for minorities and women
For LIG and EWS categories, female ownership is mandatory. The house-to-be purchased should be in the name of a female head of the family even if she is not purchasing the property. Additionally, special preference is given to disabled, minorities, and senior citizens. If any senior citizen purchases a house under this scheme, he/she is eligible to get ground floor accommodation for added comfort.
- Eco-friendly housing
Builders and developers in charge of building affordable houses under the scheme are likely to utilise environment-friendly materials. The purpose behind this instruction is to ensure less environmental damage on the construction site. Moreover, the houses are constructed with high-quality materials to ensure longevity.
If you have applied for this scheme, you can check your name in the PMAY list to see whether you are qualified to avail the said benefits or not. However, if you find the PMAY eligibility parameters stringent, you can apply for a home loan extended by esteemed Housing Finance Companies at an affordable interest rate and flexible tenor.
Moreover, these companies bring pre-approved offers on several financial products such as home loans, loans against property, etc. These offers not only to accelerate the application process but also save time. You can check your pre-approved offers online by entering your name and contact number.
Thus, apart from knowing what is PMAY, one also needs to qualify the eligibility parameters and provide essential documents to enjoy the benefits of affordable housing scheme.
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