How is a Revision in the PMAY Subsidy Beneficial for Us?

Pradhan Mantri Awas Yojana

As per from the Economic Times, the Central Sanctioning and Monitoring Committee of Pradhan Mantri Awas Yojana has significantly approved the construction of 3.61 lakh houses from 17 states or union territories under several components such as in situ slum development, affordable housing in association with private developers and beneficiary-led construction.

The PMAY scheme has been introduced in order to empower financially backward sections of society.

Benefits of PMAY scheme

One of the major benefits of Pradhan Mantri Awas Yojana is the Credit Linked Subsidy Scheme (CLSS). The Credit Linked Subsidy Scheme makes home loans in India affordable through reduced interest.

Following are the benefits of this scheme for eligible applicants:

  • The discount on the interest depends directly on the income slabs, so individuals need to apply by assessing their financial standing and housing needs. 
  • Individuals belonging to the EWS/LIG group can avail of an interest discount of 6.5% on a loan amount up to Rs.6 lakh. 
  • Moreover, individuals falling under MIG I and II can avail of a subsidised interest of 4% and 3% on a loan amount of up to Rs.9 lakh and Rs.12 lakh, respectively.
  • Married applicants can avail of joint ownership, or either of the spouses can get a single subsidy. 
  • The minorities, widows, transgender community, senior citizens can avail the benefits of this scheme. 
  • Besides, senior citizens will get an advantage of ground floor accommodation for their comfort.

This is how the credit-linked subsidy scheme works and makes housing affordable for the middle-class group.

How does PMAY scheme work?

PMAY primarily aims to construct 20 million houses for the rural and urban population of the country. The overall investment under this scheme is Rs.7.52 lakh crore, with the central government’s financial assistance of Rs.1.85 lakh crore.

One of the major verticals of this scheme is the subsidised interest applicable for economically weaker sections (EWS), Middle-income groups (MIG I-II) and Lower-income groups (LIG). This segregation of subsidised interest amounts depends on the applicant’s income, financial standing and housing requirements.

This PM housing scheme significantly simplifies the process of purchasing a house through affordable EMIs. Besides, this scheme promotes the utilisation of eco-friendly materials to prevent damage to the environment.

In addition, this programme encourages women to become owners of houses without even purchasing the property. To avail of the benefit of subsidised interest, individuals need to meet certain eligibility parameters of this scheme.

To know how urban residents can get a house via PMAY and maximise the benefits of this scheme, individuals need to meet certain eligibility requirements.

Eligibility parameters of PMAY

The PM Awas Yojana eligibility differs according to the income category that an applicant falls. Following are some of the necessary eligibility parameters that define an individual’s loan eligibility under this scheme:

  • Applicants or their family members must not own a pucca house in any part of the country.
  • Individuals must not have availed any central assistance before regarding any housing schemes.
  • As per Census 2011, the chosen property must be situated in any part of the statutory towns or any area adjacent to it.
  • To be eligible for the EWS group, the annual household income of an individual should be up to Rs.3,00,000.
  • Meet the LIG criteria, the annual household income should be between Rs.3,00,001 and Rs.6,00,000.
  • Eligible for MIG I, household income per annum should be between Rs.6,00,001 and Rs.12,00,000.
  • To meet the MIG II criteria, household income per annum should be between Rs.12,00,001 and Rs.18,00,000.
  • Married applicants can avail of joint ownership, or either of the spouses can get a single subsidy. 

Individuals qualifying for the PMAY scheme can check their application status through the official website of PMAY.

Individuals can opt to apply for home loans from reputed financial institutions that are associated with this scheme. This will make the process even easier and beneficial. Besides, eligible borrowers can avail of pre-approved offers on a wide range of financial products such as home loans, loans against property etc. These offers significantly reduce the hassle of documentation and accelerate the loaning procedure. Therefore, one can check their pre-approved offer by mentioning their name and contact details.

Thus, the PMAY scheme has financially assisted the majority of people to fulfil their dream of purchasing a house. Moreover, with interest subsidies and reduced EMIs, this scheme ensures that no Indian citizen is denied their property rights.

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