The government of Indian launched the PMAY – Pradhan Mantri Awas Yojana in June 2015 to provide affordable homes for all. This article lists out the key benefits of the PMAY
Buying a place, which they can call their own is a dream for millions of Indians belonging to the lower economic groups. The Indian government aims to help these people accomplish their dream or at least take a step forward to own a home through its PMAY (Pradhan Mantri Awas Yojana) scheme, which aims to provide housing for all by 2022.
Under this plan, the government offers various subsidies and other benefits to the people from LIG (lower income group) and the EWS (economically weaker section) who wish to buy a home or apply for a home loa. Let us look at the key benefits of the PMAY and what it offers to different economic sections of the society.
- Reduction in Home Loan Interest Rates
Under the PMAY scheme, the government of India offers subsidy on the home loan interest rates to those to qualify to obtain loan. Eligible applicants can enjoy up to 6.5% reduction in the housing loan interest rates offered by banks and other NBFCs for a period of 15 years from the date of the commencement of the loan.
While 6.5% may not seem like a big reduction, it indeed has a significant impact on the overall amount you pay. With this deduction, home loan borrowers see a decrease in their monthly EMIs, which in turn, reduces their overall home loan burdens.
This subsidy has a huge impact especially on the middle-income segment (households with an annual income ranging between Rs. 6 lakhs and Rs. 18 lakhs).
- Subsidies from the Government
The central government will offer subsidies to eligible people belonging to LIG (Low Income Groups with an annual household income ranging between Rs. 3 lakhs and Rs. 6 lakhs) and EWS (Economically Weaker Sections with an annual household income of less than Rs. 3 lakhs). The subsidies will come from the central treasury and range between Rs. 1 lakh and Rs. 2.3 lakhs for everyone. The subsidy must be used for the construction or possessing of a home.
- Affordable and High-Quality Housing for All
As per the Pradhan Mantri Awas Yojana mandate, the central government will construct more than 2 crore affordable housing units in over 2058 cities and towns pan-India. Construction of these units has already commenced in several states including West Bengal, Maharashtra, and Tamil Nadu.
This plan is considered as one of the most solid and uplifting steps taken by the government in raising the standards of living of its urban and rural poor. With more than a million Indians living in makeshift homes, this is an incredible chance for everyone to enjoy better standards of living.
- Other Miscellaneous Benefits
The PMAY offers further benefits and subsidies to women, transgender, widows, SC/ST, differently able people and senior citizens for purchasing affordable housing. For instance, senior citizens are eligible to avail flats on the ground floor under this scheme.
The PMAY is one of the best initiatives that is aimed to uplift the lives of the millions of Indians who belong to the lower classes of the economy. Make sure to understand the various subsidies offered by the PMAY and avail the benefits that apply to you.