The PMAY, Pradhan Mantri Awas Yojna, is a government-initiated scheme aiming to offer affordable housing for the middle and weaker sections of the society. It targets to construct 20 million houses by the end of March 2022. As per March 2019, 10 million rural homes have been already constructed.
The PMAY scheme comes with 4 primary components:
- Credit Linked Subsidy Scheme or CLSS.
- In-Situ redevelopment.
- Enhancement and construction of beneficiary led house.
- Affordable housing in partnership or AHP.
Benefits of PMAY Scheme:
- PMAY offers preference to women, making home ownership compulsory for females.
- Real estate developers are instructed to construct houses with eco-friendly materials and technology.The biggest benefit is the interest subsidy on home loans. Individuals in the EWS/LIG category get a subsidized rate of 6.5% while those in MIG I & MIG II get 4% and 3% rates respectively.
Meet the PMAY eligibility criteria and apply for Bajaj Finserv Home Loan to enjoy subsidy on interest rates.
1. Subsidy on Home Loan Interest Rates Make Buying Affordable
Based on your household income, you can determine the PMAY subsidy bracket you are eligible for. For example, an income of Rs.3 lakh per annum to Rs.6 lakh per annum allows the government to count you under the EWS/LIG Scheme. Under this scheme, you can claim a subsidy of 6.5% on the home loan interest rates. So, based on your income, the subsidy and the prerequisite for the home carpet areas are determined.
Thus, your home loan obligation reduces and you automatically pay more reasonable EMIs through the entire tenor.
However, note that the subsidy is only applicable for 20 years of your home loan tenor. In order to extend the convenience, PMAY schemes allow you to take a loan towards renovation of your home as well, provided you fulfill the eligibility criteria.
2. Broader Eligibility Criteria to Help You Qualify with Ease
The Pradhan Mantri Awas Yojana has been brought into action to uplift weaker sections of the society and to also help the middle-income group become homeowners. Thus, that qualifies you based on your household income and the square feet area of the home you are planning to buy.
The scheme is divided into three categories: EWS/LIG, CLSS (MIG-I), and CLSS (MIG-II). The minimum household income needed to qualify for these categories is Rs.3 lakh, while the maximum income required is Rs.18 lakh. On the other hand, the minimum carpet area for which you can take a home loan is 30 sq. mts. You can then select a lender of your preference to get a home loan on rewarding terms. For instance, taking a Home Loan with Bajaj Finserv under PM Awas Yojana ensures you also get added PMAY benefits on your sanction. This may include a top-up loan, easy prepayment terms, and customised home insurance.
3. Assistance for Public and Private Sector Projects with Environmental Consciousness
In order to promote housing for all strata of people, Pradhan Mantri Awas Yojana has brought several reputed developers and builders under their provisions. This allows the government to oversee the construction of homes for lower income groups in every part of the country. Apart from supporting these developments, the scheme makes the use of eco-friendly construction materials a mandate for the developers.
4. Compulsory Ground Floor Accommodation for Senior Citizens
To add convenience, the government has made it mandatory for developers to accommodate the disabled and senior citizens via ground floor accommodation. So, if you fall in this age bracket, then availing a home loan under Pradhan Mantri Awas Yojana will allow you to choose a ground floor house without any hassles.
5. Promotes Women’s Co-ownership and Gives Preferences to Women and Minorities
PMAY makes female homeownership mandatory and mentions the house should be registered in a women’s name even in cases when she is buying the property along with a male member of the family or a male member earning an income is buying the property. Also, as a positive step towards uplifting the weaker sections of society, the government gives preference towards applications made by widows, transgender people, schedules caste, scheduled tribe, and senior citizens.
With a fair knowledge of the scheme via the pointers mentioned above, you can know the PMAY eligibility criteria here which is based on the category you fall under apply for a home loan.
Additional Read: Credit Linked Subsidy Scheme (CLSS)
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