Buying a home is a dream for many. But, only a few accomplish it while others struggle due to lack of sufficient funds. But, with PMAY, even the economically weaker section can afford it. Read on to know about the features and benefits of PMAY.
One thing that most of us of dream about is buying a home which we can call our own. But, the lack of sufficient savings is the biggest hindrance, especially for the poor. To address this problem, the government of India launched the PMAY initiative, an affordable housing scheme.
Under this initiative, the government aims to build two crore homes in the urban localities by 2022. PMAY also helps people by giving subsidy under Credit Linked Subsidy Scheme to make their home purchase affordable.
Read on to find out the benefits and features of Pradhan Mantri Awas Yojana–
- Preference for allocation of homes on the ground floor will be given to senior citizens and differently-abled citizens.
- For the construction of the house, only eco-friendly and sustainable technologies will be used.
- The scheme has given priority to 500 Class I cities. However, the PMAY Scheme covers 4041 statutory towns in the urban regions of India.
- The Credit Linked Subsidy Scheme under the PMAY is implemented from the first stages.
- The maximum duration of the loan you can avail under the Pradhan Mantri Awas Yojana is 20 years.
- Basic facilities such as clean drinking water and sanitation facilities will be provided in all the homes built under the scheme.
- PMAY gives preference to female ownership. If you apply for a home loan under PMAY, the property must be mandatorily registered in the name of the female member of the family, or they should be one of the co-owners of the property.
Eligibility criteria for PMAY
The eligibility criteria for Pradhan Mantri Awas Yojana is based on the income of the household-
- Economically Weaker Section (EWS)
The annual income of the home should not be more than Rs. 3 Lakh for Economically Weaker Section families. The carpet area can’t be more than 30 sq.mt.
- Low Income Group (LIG)
The annual income of the household must range between Rs. 3 Lakh and Rs. 6 Lakh. The carpet area must be 60 sq.mt. At the end of the repayment period, the loan borrower’s age should not be more than 70 years.
- Middle Income Group I (MIG I)
The households with earnings between Rs. 6 Lakh to Rs. 12 Lakh come under this category. These households can get a subsidy of 4% on a home loan up to Rs. 9 Lakh.
- Medium Income Group II (MIG II)
MIG II households must have earnings that are not above Rs. 18 Lakh. A subsidy of 3% is given for a home loan up to Rs. 12 Lakh.
Apart from the income, there are other eligibility criteria that you must meet to be eligible for PMAY benefits.
- No member of the household must be an owner of a house in the country.
- If the household’s member has benefited from any other housing schemes of the central or state government, then you will not be eligible for the PMAY.
- If you are married, you can either apply for a joint loan or either of you can apply for the loan under PMAY.
- PMAY can’t be joined with any other special loan offer provided by the lenders.
The Pradhan Mantri Awas Yojana has opened doors for many Indians who are looking for their own home. If you fall in the same criteria, then you should apply for the PMAY subsidy.