Reality behind Pradhan Mantri Awas Yojana

Everyone dreams of owning a home. But most people cannot afford to turn their dreams into reality. They can now realize this dream through Pradhan Mantri Awas Yojana (PMAY). The Indian government launched this scheme in 2015 to provide housing facilities to common people. Under this scheme, every house constructed, improved, purchased, or expanded will be given an interest subsidy. The target of the scheme was to build one crore houses by 2022.

But how far this scheme has made progress? According to housing and urban affairs ministry statistics, only 64 lakh houses have so far been approved under the scheme. Among them, only 12 lakh houses have been marked as completed. The number of houses under construction is 23 lakh.

Despite the slow progress, this scheme can be your gateway to getting a housing loan in India. The credit-linked subsidy system (CLSS) is a key component under PMAY scheme. At first, the scheme was available only for the economically weaker section (EWS) and lower-income group (LIG). However, the middle-income group (MIG), people with a higher annual income, can now enjoy its benefits.

The MIG group is divided into two categories—MIG-I and MIG-II. The first group covers people with an annual income ranging from Rs.6 lakh to Rs.12 lakh. The second group covers yearly household income between Rs.12 lakh and Rs.18 lakh.

How PMAY Works

The central government provides financial assistance to the buyer by giving subsidy on home loan interest rates. The subsidy scheme helps reduce the principal amount of the loan.

This subsidy is given only for specified loan amounts. The maximum subsidy amount for the MIG-I category is Rs.9 lakh. It is Rs.12 lakh for the MIG-II category. The non-subsidised interest rate will come into play for additional loan amounts beyond these specific limits.

To opt for this facility, you need to apply for a home loan under the PMAY scheme. Most banks and non-banking financial companies (NBFCs) offer housing loan schemes. NBFCs like Bajaj Finserv offer home loans up to Rs.3.5 crore.

You must choose from among the best home loan interest rates in India.

PMAY Eligibility Criteria

Do you want to avail the PMAY facility? In that case, you must fulfil the Pradhan Mantri Awas Yojana eligibility criteria. Consider the following points in this respect:

• This PMAY scheme is offered to families comprising husband, wife, and unmarried children. For married couples, either of the spouses can apply for this facility. Both of them can also apply together for joint ownership. But they cannot apply to build two separate houses.

• Neither the beneficiary nor his/her family should own a pucca house anywhere in India.

• The applicant should not have any existing housing assistance under any central government or state government scheme.

• The Aadhaar numbers of beneficiary family members are required at the time of application.

Should you meet these criteria, you can apply for the Pradhan Mantri Awas Yojana online as well as offline. For online application, you need to visit the official website for PMAY.

Summing Up

The PMAY has been introduced with the aim to provide housing for all. The Indian government needs to spend Rs.1.5 lakh per house in seven years to meet the PMAY goal. As of now, it has disbursed Rs.32,500 crore or 22% of the total cost. So, take advantage of this scheme before it runs its course. Do not forget to check and compare the rates offered by different lenders. It’s important that you only settle for the best.