What is Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana, or “PMAY,” is a national program launched by Indian Prime Minister Narendra Modi in June 2015 to provide housing for all Indians by 2022. The primary goal of the scheme is to provide affordable housing to the urban and rural poor. The scheme offers subsidies and interest waivers to eligible applicants who want to purchase or build a home.
Under the PMAY, individuals or families with an annual income of Rs. 3 lakhs or less will be given a subsidy of Rs. 1.5 lakh rupees to purchase a home Furthermore, the government provides additional incentives such as interest subsidies on home loans and exemption from stamp duty and registration fees. So far, over 2 million homes have been approved under the PMAY and construction has begun in many states.
Since the advent of the Pradhan Mantri Awas Yojana in June, there has been a concerted effort by the Indian government to provide affordable housing for all.
If you want to apply for this scheme, keep reading for more information.
Pradhan Mantri Awas Yojana Eligibility
Did you know that the Pradhan Mantri Awas Yojana is available to help eligible citizens in India purchase their own homes? If you’re not sure if you’re eligible, or you want to learn more about the program, keep reading.
Let’s see the criteria to be satisfied for Pradhan Mantri Awas Yojana Eligibility–
1. The beneficiary’s family should not own a pucca house (an all-weather residential unit) in India, either in his/her name or in the name of any member of his/her family.
2. The beneficiary’s family should not have received central assistance from the Government of India/State government under any housing scheme.
3. The beneficiary’s family must not have received any PMAY – CLSS subsidies from any Primary Lending Institute (‘PLI’).
In addition to the given criteria, there are a few things to keep in mind. To begin with, only statutory towns identified in the Census 2011 or towns notified later are eligible for coverage under the scheme. Second, the loaned construction or extension must be completed within 36 months of the disbursement of the first installment of the loan amount. Finally, houses in the LIG/EWS category should be in the name of the female head of the household or in the joint name of the male head of the household and his wife. The only exception to this rule is if there are no adult female members of the family, in which case the house can be registered in the name of the male member of the household. Following these guidelines will help ensure your eligibility for this program.
Pradhan Mantri Awas Yojana Subsidy
The Pradhan Mantri Awas Yojana Subsidy is a demand-side intervention implemented by the Mission to expand institutional credit flow to the housing needs of the urban poor. Under this scheme, an interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions, resulting in reduced effective housing loans and Equated Monthly Instalments (EMI). The subsidy will be calculated based on the Net Present Value (NPV) of the interest, discounted at a rate of 9%. This scheme will help to make housing more affordable for the urban poor and fulfill one of the key objectives of the Mission.
Credit Linked Subsidy Scheme for EWS/LIG
The Pradhan Mantri Awas Yojana Subsidy is available for individual housing loans obtained from banks, housing finance companies, and other similar institutions.
The Pradhan Mantri Awas Yojana Subsidy is a significant benefit for people from the Economically Weaker Section (EWS) and the Low Income Group (LIG) seeking housing loans.
Credit Linked Subsidy Scheme for MIG
The government has introduced the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG). Pradhan Mantri Awas Yojana will facilitate the acquisition of a house (including re-purchase) with a carpet area of 160 or 200 square meters depending on income eligibility. This will help to make housing more affordable for the MIG, which will have a positive impact on the economy.
The only drawback is that beneficiaries are only eligible for one component under the Pradhan Mantri Awas Yojana Subsidy Misson.
Pradhan Mantri Awas Yojana Home Loan
The PMAY scheme offers interested borrowers a home loan at low-interest rates, making it easier for them to purchase their own homes. If you’re looking to buy your own home, the Pradhan Mantri Awas Yojana may be the right option for you.
The Pradhan Mantri Awas Yojana Home Loan is a government-sponsored loan program that provides financial assistance to qualified individuals for the purchase or construction of a new home. The loan is available at a low-interest rate, with a repayment period of up to 30 years. The government has designated three Central Nodal Agencies (CNAs) to ensure that the subsidy reaches the intended beneficiaries: the National Housing Bank (NHB), Housing and Urban Development Corporation (HUDCO), and the State Bank of India (SBI). These institutions will be in charge of distributing the financial support to lending institutions.
