5 Things you Must Know About PMAY

The Pradhan Mantri Awas Yojana is one of the most ambitious policies of the Ministry of Housing and Urban Affairs. This is an interest-based subsidy scheme, which provides central assistance to states or unions territories and Urban Local Bodies (ULBs). Under this scheme, eligible Indian citizens can buy low cost pakka homes, with all necessary facilities.

So, if you have been looking to buy your dream house but are facing financial constraints, here’s all you need to know about this government housing scheme.

1. Minimum Eligibility

If you wish to apply for the PMAY scheme, you need to check the eligibility for the Pradhan Mantri Awas Yojana. People belonging to Economically Weaker Sections, Low Income Group and Middle Income Group are eligible for the home loan subsidy. You will have to adhere to the cutoff for annual income and the area of your property for your category. Additionally, people belonging to Scheduled Caste, Scheduled Tribe and Other Backward Classes and women, in particular, are eligible for the PMAY as well.

2. Subsidized Rates

The most important feature of PMAY is that it offers a subsidized scheme. This depends on the loan amount and the income group you belong to. The government will provide an interest subsidy of 6.5% for EWS and LIG, 4% for MIG-I and 3% for MIG-II on loans. A few banks are offering a loan limit of ₹6 lakhs for EWS and LIG, ₹9 lakhs for MIG-I and ₹12 lakhs for MIG-II.

3. Eco-Friendly

A technology sub-mission under the Pradhan Mantri Awas Yojana facilitates the usage of green and innovative technologies and building materials. In fact, it has worked hard to adopt layout designs that are perfect for different geo-climatic zones. This means that disaster resistant technologies are in place to tackle any unforeseen situations, along with ensuring enough sunlight and air.

4. Financially Great for Women

One great benefit of the PMAY is that women, single or married, can apply independently. If a married man is applying, he has to register his wife as the co-applicant. This is a great move by the Indian government to secure the future of women, particularly when they are old, alone or widowed. In fact, the EMI for the housing loan is slightly less for women.

5. Slum Rehabilitation

Slum dwellers are also eligible to apply for the PMAY scheme. One of the main aims of the program is to replace slums with concrete houses. In-situ rehabilitation can bring these people to adopt urban settlements, instead of living in unhygienic conditions. The hidden potential of the land is also leveraged to the fullest by preserving the value. Slum upgrades will mainly be done in urban cities, which might then contribute to the GDP of the country. Indirectly, this scheme works to benefit the economy of the nation as a whole. The Central Government aims to provide ₹1 lakh per house for the rehabilitation.

Before applying, check the Pradhan Mantri Awas Yojana eligibility well. Provisions for transgender people, senior citizens and the differently abled have also been made.