Having a house of your own is a dream for almost every individual in the country, but due to the high poverty index and low-income levels, it is a long fight to make this dream come true. Keeping in mind the monetary challenges faced by a common man in India, the government of India has formulated the Pradhan Mantri Awas Yojana which enables every individual even from low-income groups to procure affordable home loans.

Features and Benefits of PM Awas Yojana(PMAY)

The main features and benefits of the Pradhan Mantri Awas Yojana are mentioned as follows:

  • The interest rate of PM Awas Yojana is provided at a subsidy of 6.50%/year if the beneficiary opts for a mortgage with a term of up to 20 years.
  • An interest subsidy will be granted to the Middle-Income Group (MIG) on residential loans for the purchase/construction of a house (including acquisition).
  • For the Economically Weaker Division (EWS) / Low Income Group (LIG), an interest subsidy will be granted for mortgage loans intended for construction or the purchase of a home. An interest subsidy will also be granted on real estate loans granted to complete bedrooms, kitchens, etc. for existing houses.
  • Under PMAY, all urban areas have been covered in India, including 4041 statutory cities with priority given to 500 class I cities
  • Environmentally friendly, environmentally, and sustainable technologies will be used for construction.
  • For the elderly and those with various disabilities, the layout of the ground floor will be preferred.Additionally, it also helps in ensuring that marries women have equal financial rights in the property as the men. Hence, every married man that enrolls in the PM Awas Yojana must also enlist his wife as a co-applicant, irrespective of her financial contribution in the home loan.

Pradhan Mantri Awas Yojana Eligibility

You can apply for PM Awas Yojana if you are not already enrolled for another government loan plan, and you fall under the category of a first-time borrower. To be eligible for the PMAY CLSS program, you must not own a house (pucca house) of your own. The government has also further clarified the requirement for income bracket and pmay eligibility criteria in respect to different groups. You cannot avail PMAY while you already have a manufactured home. In addition, the construction/extension based on the PMAY housing loan must be finalized within 36 months from the date of disbursement. You must view the following criteria to confirm the qualifications below:

You must fall under one of these categories based on income-

(a) Economically Weaker Sections (EWS)- less than 3 Lakhs

(b) Low Income Group (LIG)- between 3 Lakhs and 6 Lakhs

(c) Medium Income Group (I)- between 6 Lakhs and 12 Lakhs

(d) Medium Income Group (II)- between 12 Lakhs and 18 Lakhs

The PMAY scheme is pro-woman. Hence, you need to have a female member in the family. She will be the co-owner of the property.

The PM Awas Yojana that was formulated in 2015, aims to be completed by 2020 with the construction of 20 million houses for low-income families.

Key components of Pradhan Mantri Awas Yojana

InSitu Redevelopment: Here the government provides urban space for people living in slums by using slum land during the process.

Central Support: The government provides central support of Rs 1.50 lakh by providing financial assistance to families in weaker economic sectors to build a new house or upgrade an existing asset.

Affordable housing: With the public-private partnership for affordable housing, the government supports affordable housing projects.

Credit Linked Subsidy Scheme (CLSS): Here the government offers a credit subsidy program to build houses at lower interest rates based on income level and eligibility criteria and other conditions.