Details on Pradhan Mantri Awas Yojana Housing Scheme

Details on Pradhan Mantri Awas Yojana Housing Scheme

Known in short as PMAY, this popular scheme was launched on 1st June 2015 by the current Indian Prime Minister Sri. Narendra Modi, to benefit the urban poor spread across the country. This scheme is the initiative taken by the Indian Government with a mission to offer housing to everyone with the target set by 2022, the time when the country completes its 75th year of getting independence from foreign rule.

Under this scheme, there will be constructed affordable houses in selected towns and cities. The construction methods used will be co-friendly and benefit the country’s urban poor population.

Who are the beneficiaries?

The beneficiary is one who does not currently own any concrete house either in his/her or other family member’s name anywhere in the country. The rule also states that beneficiary family is not to have availed any central assistance from the Indian Government’s housing schemes. Aadhar numbers to be provided by beneficiary’s family members to avoid duplicating during loan application process.

As per guidelines, the adult earning member is treated as separate household, but not to possess concrete house anywhere in the country in his/her own name.

Even children staying with parents, be it unmarried or married, in parents’ owned house can avail this scheme, provided they are employed and do not have any home of their own.

Married rented couples with parents owning a home are treated as separate household. But to avail scheme benefits, single house eligibility is only allowed, purchased in joint ownership by both the couple, or either of the spouses.

Salient features of the scheme

Subsidy interest rates offered under this scheme are 6.5% p.a. for 20 years on housing loan.

Senior and differently abled citizens are to be given preference to get ground floor allocation.

Eco-friendly and sustainable technologies used for construction purpose.

The scheme is to be carried out in three phases, covering the country’s entire urban areas, including 4041 statutory towns and priority for Class 1 500 cities.

Right from initial stages, credit-linked subsidy aspect gets implemented throughout the country at all statutory towns.

Subsidy offered

4% subsidy is offered to individuals in MIG 1 category on loan amount to about Rs. 9,00,000, while 3% subsidy is offered to individuals in MIG 2 category on loan amount to about Rs. 12,00,000. Lender offers additional loan amount, but at non-subsidised rates.

How it works?

For instance, a person desires to purchase a house amounting Rs. 60 lakh in MIG 2 category. 20% down payment is the minimum mandatory on the total amount, which is Rs. 12 lakh. Rs. 48 lakh balance amount can be derived from loan. However, in case of PMAY scheme, 3% subsidy is applicable until Rs. 12 lakh. Interest rate offered by the lender on the home loan is applicable on Rs. 36 lakh balance.

Objectives of the scheme

Recent surveys conducted have shown alarming increase in the number of urban dwellers in the country and by 2050 is expected to cross 814 million mark. Major challenges faced by the government are providing everyone with affordable housing options along with proper sanitation and sustainable development. Few of the main objectives are as follows:

To ensure that the scheme is availed by those who are economically challenged including women belonging to minority groups like Scheduled Tribes and Scheduled Castes.

Affordable housing for everyone by 2022.

Provide hosing to those ignored demographics, like lower income group, widows, transgender, etc.

Mandatory registration to avail scheme benefits including strict beneficiary names for wives and mothers.

Loans under PMAY

Those desiring to acquire new house either from builder or developer or perhaps purchase house from secondary market via re-purchase can avail PMAY benefits. Loans can also be taken for home construction.

In case, the person owns a home already and is eager to avail the benefits under this scheme, there is indeed a possibility. The Mission according to the government offers incremental/enhancements housing to existing concrete (pucca) home under CLSS component. Hence, the applicant applying for home loan to construct additional kitchen, room, etc. in his/her existing dwelling cannot be declined only for the reason of possessing already a concrete home.

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