Storify News | India’s housing problem is a critical one. Large numbers of those in rural as well as urban locations are forced to sleep in open, vacant places for want of proper accommodation or live on high rent in areas that do not offer even the basic amenities. To address these concerns the government has come up with the Pradhan Mantri Awas Yojana, a progressive scheme that aims to create affordable housing in India by 2022. Here are the complete details of the PMAY scheme.
- Main Characteristics of the Scheme
For a nation that has made great strides in information technology, economic surveys reveal that 80% of rural households do not have basic amenities like water and electricity. A proper home that is beyond the reach of even the middle class worsens the problem. To allow all the opportunity to own a home of their home, irrespective of economic backgrounds, the government has envisaged the Pradhan Mantri Awas Yojana scheme. The scheme has the following principal features.
- It aims to provide both the urban and rural poor with the financial means to buy their own accommodation through home loans where the interest is subsidized by up to Rs.2.67 lakh.
- This interest subsidy is given through a credit linked subsidy scheme (CLSS) which is a sub-section of the overall PMAY scheme. The scheme is christened as PMAY-Urban in urban areas and PMAY-Gramin in the rural areas but has similar features.
- The PMAY Scheme aims at eliminating all slum areas in the country and reducing the disparity in the standards of living conditions. This is planned via not just the subsidy on home loans, but by also involving both the private and public sectors to participate in the initiative.
- The minimum size of houses to be constructed under PMAY will conform to the standards prescribed in the National Building Code (NBC). Whether built or expanded, all houses approved by the NBC will be equipped with a toilet.
- Scope of the PMAY Scheme
Launched in June 2015, the PMAY scheme was originally intended to meet the housing needs of the economically weaker sections and lower income groups through subsidised finance. However the benefits of the scheme have been extended to those person coming under the middle income groups as well. Here, families whose annual household income falls below Rs.3 lakh are classified under the economically weaker sections (EWS), those whose income is between Rs.3 to Rs.6 lakh as lower income group (LIG), and those with annual household income is between Rs.6 to Rs.18 lakh are clubbed into the middle income group (MIG). This group is further divided into two section of MIG 1, with an annual income up to Rs.12 lakh and MIG 2 with an annual income up to Rs.12 lakh.
- Who Qualifies as a Beneficiary of the Scheme?
To qualify as a beneficiary of the scheme which will enable you to take a home loan at discounted rates, you need to fall under one of the three aforesaid PMAY eligibility categories, namely EWS, LIG or MIG. There are also other considerations that you need to meet:
- You and your family, comprising of your spouse and unmarried children, should not have owned a house before.
- You are required to submit a self-certified document or affidavit of proof of income to enable the lending agencies to slot you into the EWS, LIG or MIG categories.
- Under the middle income group (MIG) category, any individual in the household who earns an income is considered as a separate family unit, even if he/she is unmarried.
- The house needs to be mandatorily registered in the name of a female family member under the EWS and LIG categories to promote women’s ownership of housing and preference is given to women applicants, those from backward classes and differently-abled persons.
- Subsidy Amount and How to Apply for It
The maximum subsidy that can be availed of is Rs.2.67 lakh. Beneficiaries falling under EWS and LIG categories are permitted to avail loans at a subsidized rate of up to 6.5% interest for a tenor of 20 years. Those from the MIG category can avail loans at an interest subsidy of 3% and 4%. In terms of total loan amount, those from the EWS and LIG category can avail a home loan of up to Rs.9 lakh while those from the MIG category can get loans of Rs.9 lakh and Rs.12 lakh. The total interest subsidy will be credited to you in one lumpsum thus reducing your home loan EMIs.
To apply for the scheme online, you can log on to the official website, https://pmaymis.gov.in, and follow the necessary instructions. You can also apply for the same offline, but a processing fee exclusive of GST will be levied in this case. Woman ownership is mandatory for EWS and LIG category applicants, while for MIG applicants Aadhar Card details are required.
- Coverage and Duration of the Scheme
The PMAY scheme will use three phases to cover 4041 statutory town as per Census 2011. In the first phase lasted from April 2015 to March 2017 and covered 100 cities selected from states/Union territories. In the second phase from April 2017 to March 2019, an additional 200 cities will be covered. The third phase will cover the balance areas from April 2019 to March 2022.
Now that you know the complete details of the PMAY scheme, it is time to check if you are eligible for it. Apply for an affordable Home Loan from Bajaj Finserv to get the interest subsidy and a high loan amount with other benefits like an affordable top-up loan, a long repayment tenor, and a part-prepayment facility. Read More news at Storify News