Pradhan Mantri Awas Yojana, All about Saving Money on Home Loans

The Government of India has taken great steps towards making “Housing for all” a reality by 2022. The Pradhan Mantri Awas Yojana has now recently emerged and expanded to Carter to the housing needs of the mid-income group, and beside this, it is also for economically weaker Sections and low-income group.  Recently Indian Government has doubled the quantum of loan eligibility for interest benefits under The Prime Minister Awas Yojana.  The Pradhan Mantri Awas Yojana is really a good scheme on the government part.  Indian Government aimed at providing housing for all by the year 2022. The Scheme is being implemented across the nation with the help of state governments housing and Development authorities.  The features of PMAY are that the government will provide interest on housing loans availed by the beneficiaries.

What is Pradhan Mantri Awas Yojana (PMAY) ?

This Yojana was launched in June 2015. The government envisages building affordable pucca houses with water facilities, sanitation, and of course electricity. This scheme was launched to cover people in the EWS (annual income not exceeding=3 Lakh) and LIG (annual income not exceeding= 6 Lakh) but now it also covers mid-income group as well. This Yojana comprises of four key aspects. One it aims to transform slum areas by building homes for slum dwellers in collaboration with private developers. It also gives credit lined subsidy to weaker section and mid sections on loans taken for new construction or renovation for existing homes.

The interest subsidy of 3% to 6.5% has been announced for loans ranging between 6 lakh to 12 lakh. A person who wishes to take up loan there is an interest subsidy of 6.5% for tenure of 15 years.

What is Eligibility Criteria For PMAY?

We say India has developed despite several developments in the past over decades has taken place but India still has a large number of the population under Poverty, Most of whom don’t have a house to call their own. The Indian government took up a serious step towards abolishing homelessness with the introduction of PMAY. This project is about Housing for all.

  • People who earn less than 3lakh comes under the EWS category. And an applicant claiming to be an EWS category should need to provide evidence.
  • People belonging to Light Income Group(LIG) usually must  have an annual income between 3 Lakh to 6 lakh to be eligible for this Scheme.
  • People who have an income of 12lakh annually falls under the MIG1 category. These people can avail loans up to 9 lakh for the construction of their Residence.
  • Middle Income Group (MID) should have income between 12 to 18lakh and they can avail loans up to 12 lakh.
  • People belonging from a minority group that is SC/ST/OBC will fall under MIG2 of the PMAY scheme. These people need to present evidence of their category to avail this Scheme.
  • Women’s Belonging to EWS/LIG categories will be considered if they apply under the PMAY.

Objectives of PMAY.

The PMAY was launched back in 2015 with the number of purposes.

  • To make sure that the poor section of Urban areas can have their own house.
  • Also to provide the entire support to the people who can’t built their own residential property.
  • To propose is to provide houses to the weaker Sections of the society.
  • To combine public and private sector to bid and improve the fate of the nation.

Present Changes Made Under the PMAY.

The PMAY Yojana has already helped thousands of people to build their own roof in India. And the dreams of their owing own house. There are certain eligibility criteria to be fulfilled before availing this Yojana in order to successfully avail home loan through the CLSS. The applicants family income should not be above 18Lakh. PA. And the maximum Carpet area eligible for the subsidy is 150sqm. The tax benefit will be Available for the lowcost housing project as well.

Eligibility of Subsidy Under PMAY

The Ministry of Housing and Urban Poverty Alleviation has listed the help of some leading banks in the country to provide loans for construction under PMAY. HDFC Ltd has partnered with the government to offer loans to people who have applied for the scheme.

The eligibility criteria for the subsidy is:

  • The Applicant family must not own any housing property in any part of the country.
  • In case of married couple only a single or joint deal is allowed.
  • The applicant family must not have availed any benefit of this scheme prior.

How can one Apply for PMAY Scheme:

  • Log on to the official Pradhan Mantri Awas Yojana website if belonging to urban HFA urban or Rural.
  • Choose the “Benefits under other 3 components or for slum Dwellers options by clicking the option citizen Assignment drop-down.
  • Submit your Aadhar ID number for the verification.
  • The first page requires the applicant to verify the Aadhar number. Once the number is verified the application proceeds to the next page. The government uses an Aadhaar number to ensure that an individual applied for the scheme and doesn’t defraud the system.
  • Before you apply check your eligibility for PMAY. The eligibility conditions are pretty much available on the lender’s website. Once you are done with checking and assessing your loan eligibility. You may proceed and approach your nearest bank or NBFC or HFC to apply and avail a PMAY home loan. The Applicant is required to submit their proof and self-declaration forms at the Time of filling the application to avail these scheme.

Government is accepting online application forms through the official website  interested and eligible applicants can apply online to get their own house under PMAY.

So we can consider this is one of the best Scheme by Govt of India to Indian Citizens who can’t afford their own house, under this scheme everything comes easy for them and the happiness of having own home is something very different which now every poor can feel and afford it. This can be considered as the great initiative in India to make “Housing for all” a great success.

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