To fulfil its ‘Housing for All’ mission, the government of India launched the PMAY scheme on June 1, 2015. The scheme aims to provide affordable housing for all, especially to the urban poor. Read on to know more about the scheme and its benefits.
Housing is one of the necessities for all. However, not many people can afford to buy a home of their home, and the necessity remains a distant dream for them. To resolve this issue of making the homes more affordable for the poor, the government of India launched the Pradhan Mantri Awas Yojana, an ambitious affordable housing scheme to help every citizen become a homeowner.
Under the scheme, the government aims to provide a pucca house to all citizens by constructing new homes in different cities as well as offering interest subsidy on home loans. Additionally, to encourage the builders in the country to build more affordable homes and cater to the housing needs of the urban poor, the government announced tax benefits.
Let us look at some of the benefits of Pradhan Mantri Awas Yojana
Interest subsidy on home loans for all citizens
One of the most significant benefits of PMAY scheme is that it encourages the people to be a homeowner by offering them a subsidy on the home loan interest rate. However, to avail the allowance, you must meet specific eligibility requirements; also, the government provides subsidy based on the income you belong. For the benefit of the people, the government has categories potential beneficiaries as EWS (Economically Weaker Section), LIG (Lower Income Group), MIG – I (Middle Income Group) and MIG – II.
- If you belong to the EWS or LIG category, the maximum subsidy you can get is 6.5% for 20 years
- If you belong to MIG – I category, you are eligible to get a home loan interest subsidy of 4% on loan up to Rs. 9 lakhs for 20 years
- If you fall under the MIG-II category, you can avail a subsidy of 3% on loan up to Rs. 12 lakhs for 20 years
Housing Unit for People from All Strata of the Society
As per the Pradhan Mantri Awas Yojana mandate, the government aims to build more than two lakh new affordable housing units across different urban areas in the country. The construction of the homes has already begun in several states. Through these housing units, the government aims to uplift the living standards of the poor.
Development of houses in rural areas
The PMAY scheme is not solely focused on the upliftment of the urban poor. Under the PMAY – Rural scheme, equal focus is given to the development of low-cost and affordable housing units in the rural areas of the country. The scheme, apart from providing housing units for the poor, it also aims at the development of the real estate sector in the rural areas and associated industries.
Better benefits for women and people from minority communities
This is one of the highlights of the PMAY scheme. The scheme makes female homeownership mandatory. This means, if you are allotted a housing unit under the scheme or if you avail home loan under the scheme, the property must be compulsorily registered in the name of the female member.
Additionally, the scheme gives preference to salaried women, transgender, the disabled members and senior citizens. During the allotment phase of the newly constructed affordable housing units, preference will be given to female and senior citizen applicants. Also, all homes located on the ground floor will be allocated to senior citizens and differently-abled beneficiaries.
All the new houses built under the scheme will be built using eco-friendly construction techniques and using eco-friendly materials. This is to ensure minimum damage to the environment and reduce the pollution scale.
So, now that you are aware of the benefits of the scheme, you can apply for a home loan under the PMAY and get a step closer to purchase your dream home.