The PM Awas Yojana, or ‘Housing for All’, was inaugurated by the Indian government to boost the affordability of houses. This beneficial scheme aims to reach its objective by constructing 20 million houses across the country.
Depending on the areas, this scheme is segregated into Pradhan Mantri Awas Yojana Gramin (PMAY-G) and Pradhan Mantri Awas Yojana Urban (PMAY-U). From the time this scheme was introduced, PMAY has significantly changed the real-estate sector’s dynamics, thereby reducing the cost of obtaining a home for urban poor.
Components of PMAY
This ambitious scheme targets to provide shelter to the backward section of society (EWS, MIG I-II and LIG), which can be achieved through four vertical schemes and they are –
In-situ slum redevelopment
This scheme targets to reform slums with land as a resource, in association with a private organisation to provide affordable housing to families residing in such places. In this way the land in which slums constructed will utilised to provide residents with well-constructed houses. The slum situated on government or private lands is considered under this scheme.
Credit-Linked Subsidy Scheme
This particular scheme provides a subsidised interest rate on home loans to those who meet the eligibility parameters. Under the CLSS scheme, government provides an interest subsidy of 6.50% on the borrowed amount for a tenor of 20 years from the beginning of the loan that makes housing affordable. The lending institution will transfer the interest amount to the beneficiaries’ accounts, reducing EMIs and home loan amounts.
Affordable housing
In collaboration with private and public sectors, this component of PM Awas Yojana aims to provide reasonable housing to the economically backward section. The Union territories and States can plan budget-friendly housing projects by collaborating with different agencies.
Beneficiary-led Improvement and construction of houses
Under Pradhan Mantri Awas Yojana, this component benefits the individuals who cannot avail the advantages of the other three components. Under this, the beneficiary family will get Rs.1.50 lakh to improve their existing house or build a new one.
Apart from these, individuals can also enjoy multiple benefits associated with this scheme. Read along to know the benefits of PM Awas Yojana:
Benefits of PMAY
This scheme was introduced to meet the ever-growing gap between the demand and supply for urban housing facilities. Take a quick look at the exclusive benefits under this programme:
- There is a mandatory provision of ground floor accommodation for senior citizens and differently-abled individuals.
- Houses constructed under this scheme using eco-friendly and imperishable materials.
- This scheme covers India’s entire urban region, including 4041 legislative towns with special preferences for 500 Class I sites.
Now that borrowers know the key benefits of Pradhan Mantri Awas Yojana, they must meet the qualifying parameters to become beneficiaries.
Eligibility parameters of PMAY 2021-22
Individuals who are eligible for this scheme must comply with these following requisites –
- Any family with a yearly income of Rs.3-18 lakh can apply for PMAY
- The applicant or any other family member must not be an owner of a pucca house in any part of the country
- If an applicant is married he/she can apply for subsidy as joint ownership or either of the spouses can apply for a single subsidy
Individuals looking to apply for PMAY must know the eligibility criteria and fulfil them without any discrepancy. Individuals can apply for this scheme both online and offline by following a few simple steps.
However, if a potential borrower fails to meet the set eligibility requirements, he/she can consider opting for a home loan extended by reputed HFCs at an affordable rate and flexible tenor.
Moreover, existing borrowers can also enjoy pre-approved offers that save time and simplify the lending procedure. These offers are available on various financial products, including home loan process, loans against property, etc. Prospective applicants can check their pre-approved offer online by entering their essential credentials.
Through this scheme, the Indian government extended efforts to empower women from EWS and LIG categories and made it compulsory for the female head to be the owner or co-owner of a house under PM Awas Yojana.