Last Updated on May 20, 2021 by MoneyVisual
Pradhan Mantri Awas Yojana is a home loan subsidy scheme introduced by the Government of India in 2015. It aims to address the real estate demand-supply equilibrium by offering affordable ‘pucca’ homes to every household in India. PMAY aims to build around 2 Crore budget houses in both rural and urban India by 2022.
What is the PMAY Scheme?
The Government recently extended its ‘housing for all’ scheme to the middle-income group, besides the Low Income Group (LIG) and Economically Weaker Section (EWS).
The PMAY scheme comprises of 2 key aspects –
a. It aims to convert slum areas into urban dwelling spaces with amicable living standards by building budget houses in collaboration with private companies.
b. Pradhan Mantri Awas plans to assist to mid-income and weaker economic sections on loans to construct new houses or upgrade existing ones via a credit-linked subsidy scheme.
Why Is PMAY Important?
When the nation’s metropolitan cities are suffering from a substantial amount of unsold properties, India records a shortage of around 21 million housing units for the MIG and lower-income demographics. The PMAY Scheme targets to fulfill this shortfall.
For those belonging to middle and lower-income groups, this housing scheme reduces the cost of acquiring property by Rs. 1 to Rs. 2.5 Lakh. Recently, the increase in loan amount from Rs. 6 Lakh to Rs. 12 Lakh and its extension to the middle-income group has increased the outreach of this scheme towards providing affordable housing. You should opt to buy your property and avail the benefits of the PMAY scheme if you are eligible for it.
This scheme is provided through the financial institutions and NBFCs to help the eligible applicants in availing of this subsidized low home loan interest rates.
How to Apply for Pradhan Mantri Awas Yojana?
If you’re looking for a house under PMAY scheme, apply it this way –
- Visit the official website of PMAY
- Select the ‘benefits under 3 components’ from the citizen assessment drop-down menu
- Enter the Aadhaar details and hit submit
- Now that you’re redirected to the application page fill in all the details
- After completing the application process and submit
What Falls Under PMAY Eligibility Criteria?
There are 3 schemes included in the beneficiaries section. For those with an annual household income of Rs. 3 Lakh falls under the EWS category. The LIG section’s income cap ranges from Rs. 3 Lakh to Rs. 6 Lakh. The MIG section needs to have an annual household income between Rs. 6 Lakh to Rs. 18 Lakh.
The other criteria are as follows –
- An application must not own a ‘pucca’ home either in his/her name. No family member should also own a ‘pucca’ home.
- One adult female membership in the property is mandatory.
- The maximum tenor of the PMAY loan amount is 20 years.
- The maximum age limit eligible for this loan ranges from 25 – 65 years.
Here is how you can check your name in the Pradhan Mantri Awas Yojana List.
Where to Avail the Loan From?
You can avail of a Pradhan Mantri Awas Yojana loan from all leading financial institutions across India to buy your residence. Alternatively, you can also opt for a home loan from NBFCs to fund your new construction or to expand an existing structure. You can procure loans of up to Rs. 5 Crore with minimal documentation and flexible repayment tenor of up to 20 years.
Moreover, you’d benefit from the lowest interest rates and no additional charges on part-prepayment and foreclosure facility. The home loan subsidy scheme is turning the dream of affordable housing into reality. It aims to provide housing solutions for those who reside below living standards and boost the real estate market scenario in India. Make sure everything you know everything about a home construction loan and buy your way towards a better future for yourself and your family.