What are the Benefits of the Pradhan Mantri Awas Yojana Scheme?
Buying your dream house in India can be challenging due to the soaring prices of real estate. To ensure that members of India’s economically weak population have access to high-quality housing, the government launched Pradhan Mantri Awas Yojana (PMAY) Scheme. It is a government scheme created to close the gap between Indians and affordable housing.
It is meant for families looking to acquire a house for the first time, and as we first mentioned, it serves the economically weak sections and other lower-income categories. The PMAY Scheme was launched in 2015 under the “Housing for All” initiative and offers homes at subsidized prices.
Read on to learn more about this scheme and its many benefits.
List of the Affordable Housing Schemes in India
Over the years, the Indian government has introduced many housing schemes to protect citizens from rising property prices. Below are the housing schemes launched by the Government of India.
Pradhan Mantri Awas Yojana (PMAY)
Launched in 2015 to offer first-time homeowners affordable houses, this scheme prioritizes women and homeless individuals.
Pradhan Mantri Gramin Awas Yojana
When this housing scheme was first launched, it was known as Indira Awas Yojana. It focuses on homeless families, providing them with pucca houses that possess basic amenities. The central government also bears the construction costs for this category along with the state government.
Rajiv Awas Yojana
Launched in 2009, the Rajiv Awas Yojana is a housing scheme that aims to bring a halt to illegal constructions all over the country. To encourage a slum-free India, the scheme offers affordable housing.
Objectives of Pradhan Mantri Awas Yojana
Below are three objectives of PMAY:
- PMAY aims to provide pucca housing to up to 20 million economically disadvantaged individuals.
- It also aims to incorporate widows and members of the low-income group.
- Through PMAY, the government aims to improve the living conditions of slum dwellers.
A Breakdown of the Interest Subsidy under the PMAY Scheme
Below is a list of the income groups eligible for the housing scheme and the exact value of the interest subsidy.
- If you belong to the economically weaker section (EWS) or low-income group (LIG), you enjoy an interest subsidy of 6.5% for a 20-year tenor.
- You are in the mid-level MIG, you enjoy an interest subsidy of 4% on a maximum loan amount of Rs.9 lakh for a tenor of 20 years.
- If you belong to MIG 2, you get an interest subsidy of 3% on a principal amount of up to Rs. 12 lakhs for a 20-year tenor.
Benefits of Pradhan Mantri Awas Yojana Scheme
Below are the benefits you enjoy when you apply for the generous PMAY scheme.
Availability of Credit-linked Subsidy
One perk you stand to enjoy when you apply for the PMAY scheme is an interest subsidy on your desired home loan amount.
Inexpensive Housing for All
In line with its “Housing for All” initiative, the PMAY scheme hopes to complete the construction of 20 affordable million houses to tackle the issue of high property costs. With this scheme, the government looks to improve the living conditions of many citizens.
Accessible Housing for All
This scheme fosters the development of the real estate industry in both rural and urban areas. Thanks to the scheme, individuals belonging to low and middle-income groups benefit from cheap housing.
To reduce pollution levels, real estate developers under the PMAY scheme always utilize eco-friendly construction equipment and technology.
Preferential Treatment for Women and Minorities
The PMAY scheme requires that the house should be registered in a woman’s name, whether she is the owner or not. This extends to transgender people, the disabled, and senior citizens. Also if you are a senior citizen you guaranteed ground-level accommodation.
Frequently Asked Questions
Q: Who can benefit from the PMAY scheme?
A: Every Indian citizen who belongs to the EWS, LIG, or MIG category can benefit from this scheme.
Q: Can a person apply twice?
A: Applicants can only benefit from the housing scheme once. This is why your Aadhar Card is required so that you can not apply twice.
Q: Is there any registration fee attached to the PMAY scheme?
A: If you are applying through the online portal, there will be no charges. However if you apply offline you expected to pay a registration fee of Rs.25.