109.2 lakh houses have been sanctioned on January 18, 2021, under the Pradhan Mantri Awas Yojana scheme. At the same time, the demand for affordable housing stood at 1.12 crore by 2020. PMAY was launched in 2015 by the Indian government.
Another report stated that the central government granted around Rs.1.66 lakh crore for the same. In November 2020, the finance minister raised the outlay for PMAY Urban scheme by Rs. 18,000 crores to combat pandemic conditions.
This scheme aims in providing affordable housing to people falling under the mid-income and economically backward groups by 2022. PMAY scheme is broadly divided into two sections urban and rural.
However, individuals must know about this scheme in-depth to derive benefits out of the credit offered.
What is the PMAY scheme?
PMAY scheme extends financial assistance to urban residents through CLSS or credit-linked subsidy scheme. This subsidy allows individuals to purchase their desired house against an affordable interest rate. Applicants have to register their names on the official site with their category.
However, the key benefits of Pradhan Mantri Awas Yojana PMAY are only available to individuals who make the PMAY list. This list is released by the central government each year and houses the name of all the beneficiaries under this ‘housing for all’ scheme.
Features of PM Awas Yojana
Following are some of the features of this PMAY online scheme.
- This scheme mandates the usage of eco-friendly material to build houses.
- Individuals can avail of a home loan with a subsidy of 6.50% on the interest rate for a tenor of up to 20 years.
- PMAY scheme provides ground floor housing for senior citizen and differently-abled
- Women applicants can gain more benefits out of this scheme.
The central government extends a 4% interest subsidy on a loan amount of up to Rs.9 lakhs for MIG-I groups. While individuals falling under MIG-II will get a 3% subsidy on the same loan amount.
However, to gain these benefits, one must clear the eligibility parameters first.
Eligibility criteria for PMAY
Individuals who want to reap benefit under Pradhan Mantri Awas Yojana for a home loan need to fulfil specific eligibility criteria.
Some of them are mentioned below.
- An eligible candidate should not have availed of any credit under other housing scheme offered by the central government.
- He/she mustn’t possess a pucca house in any part of the country.
- Individuals with an annual income of up to Rs.18 lakh can apply for this PM Awas Yojana.
In case an individual fails to meet the above mentioned criteria, one can avail of a home loan from HFCs.
They also extend pre-approved offers that make loan processing convenient. Such offers are levied available on financial products like loans against property, home loans, etc. Check your pre-approved offer instantly by submitting your name and mobile number. The central government is trying to boost the real estate sector through several such initiatives. Moreover, access to affordable homes has also improved via schemes like PMAY despite pandemic.