The PMAY (Pradhan Mantri Awas Yojana) is one of the most extensive Government-endorsed initiatives aimed to solve housing problems for the urban low-income group of the country. This initiative is fuelled by the motive of providing affordable housing for the people. The Government of India aimed at delivering about 20 Lakh residences by the end of March 2022 via this scheme. PMAY has two distinct parts:
1. Pradhan Mantri Awas Yojana (Urban) meant for the sub-urban and urban low-income group.
2. Pradhan Mantri Awaas Yojana (Gramin) meant for the low-income group dwelling in rural areas. It is also known as PMAY-R.
Now, it’s time to have the critical inputs on all you need to know about PMAY.
The Pradhan Mantri Awas Yojana was launched in June 2015 to improve the living standards of urban low-income families and individuals. In addition to providing pucca houses, the Pradhan Mantri Awas Yojana aims to benefit across other aspects as well including:
PMAY benefits and features are spread across this 4-fold scheme:
1. Transformation of slum areas into urban spaces with better living conditions.
2. Providing credit-linked subsidy to weaker sections, namely mid and low income groups (also known as PMAY CLSS).
3. Provision for government assistance across multiple other features.
4. Offer financial support.
Who Are All Eligible?
PMAY eligibility criteria are based primarily on the income gradient there are multiple other fundamental mandates as well. An individual with ownership of a property is not eligible for this scheme. Furthermore, members of family related to that individual also may not hold ownership of any property if they want to be eligible for this scheme.
Some other points of eligibility to keep in mind:
1. Even children can opt for the PMAY scheme as long as they are earning and reside with their parents, in a house owned by the same.
2. A married couple is eligible as well. However, they are considered for a single house, not for two different houses. They can opt for individual ownership or joint ownership.
Eligibility for Subsidy
There are slabs for PMAY CLSS, which are:
1. For MIG-1: For this category, individuals can get up to 4% subsidy for loans of up to Rs. 9 Lakh.
2. For MIG-2: For this category, individuals can get up to 3% subsidy for loans of up to Rs. 12 Lakh.
The individuals will only be able to avail the benefits for the amount mentioned under the scheme. Any amount below the threshold will not be subsidised.
What’s more is that the scheme’s subsidies can be availed at various banks, including NBFCs (non-banking finance company).
How Does the Loan Get Processed?
The home loan under this scheme can be availed through registered financial institutions, both government-backed and private. It is crucial that an individual should look at the list of approved financial institutions before moving forward.
1. The sanctioned amount will be granted in full and not in instalments.
2. The lender or NBFC applied to, will get the subsidy on behalf of the applicant for the loan.
3. Once the subsidy is approved, the amount will be disbursed to the applicant’s account, and the instalments will be 1. decreased.
It is indeed a simple option to avail the loan from a trustworthy NBFC like Bajaj Finserv. You won’t have any headache after you avail the same. Simple criteria, high loan value, less documentation are some of the immediate benefits you will gain.
The PMAY scheme is considered as the one of the largest government undertakings towards a comprehensive solution to improve the nation’s living standards aimed specifically towards the rural and urban low-income group. From accommodation to water, sanitization, and electricity, it sets the timeline of completion at 2022.