The introduction of PMAY has been a boon for many homebuyers in India. Read on to know how this affordable housing scheme has made buying a home easy for all.
The PMAY is an affordable housing scheme that aims to provide affordable houses for the lower-income groups and the weaker sections. Under the scheme, the government aims to build about two crore new affordable housing units by March 2022.
The scheme has been a boon for many home buyers; let’s see how it has made home buying easy.
Subsidy on Home Loan Interest
Under the PMAY scheme, the government of India has classified the eligible beneficiaries based on the income groups, and the subsidy is extended accordingly. The subsidy is granted under the CLSS PMAY, which is an integral part of the scheme. For instance, if your annual household income is Rs. 3 lakhs to Rs. 6 lakhs, then you fall under the EWS (Economically Weaker Section) or LIG (Lower Income Group) category, and you are eligible to get a subsidy of 6.5% on the home loan interest rate.
Based on the income group you belong to, the lenders decide the subsidy bracket and carpet area of the property you can buy. Also, you must note that the subsidy is available only for a maximum duration of 20 years. Thus, with the interest subsidy, your EMI becomes more affordable, and buying a home becomes easier.
Promotes Women Home Ownership
One of the most significant highlights of the PMAY is that it is considered to be one of the most women-friendly government initiatives. If you avail of a home loan under the PMAY scheme, the property you purchase must necessarily be registered in the name of a female member as a co-owner, irrespective of their contribution towards the loan repayment. This step is taken to empower women and be a homeowner and financially independent.
Also, widowers, single women parents, and transgender beneficiaries are given priority during the home allocation phase. Thus, with the introduction of the PMAY, for a woman, being a homeowner has become easier than ever before.
Compulsory accommodation to senior citizens
For the convenience of the senior citizens and people who are differently-abled, the government has made it mandatory to grant accommodation facilities to them on the ground floor of the newly constructed buildings under the PMAY scheme. If you are a senior citizen and have a home loan under the PMAY scheme, you choose a house on the ground floor without any hassles.
To promote house ownership among all strata of the society, the Pradhan Mantri Awas Yojana has brought many real estate developers under its provisions. This allows the government to oversee the construction of the affordable housing units for the poor citizens across cities where the construction work is underway.
Apart from supporting the development of these houses through tax rebates and financial assistance to the developers, the scheme has mandated the use of only eco-friendly construction material and techniques. This is to ensure minimal impact on the environment around the construction area and reduce pollution.
Additionally, all the houses constructed under the PMAY will have all basic amenities, including a supply of clean drinking water, 24 x 7 electricity supply, gas connection, and hygienic sanitation facilities.
Thus, the scheme helps the beneficiaries get a permanent roof and guarantees a better living for them.