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PMAY: Features and benefits for home buyers

Flora Harvey

Pradhan Mantri Awas Yojana is a credit-linked subsidy scheme by the Indian Government. The primary focus of PMAY is to achieve the ‘Housing for All by 2022’ goal. Primarily, individuals from lower-income, middle-income, and economically weaker sections are eligible for Pradhan Mantri Awas Yojana benefits.

According to a report, the government aims to construct 21.4 million houses under PMAY-Rural and 11.2 million houses under PMAY-Urban by 2022. To achieve the target, they have increased the extra-budgetary resources to Rs.20 crore for PMAY-R in FY22.

This indicates a better opportunity for potential applicants to purchase houses under the PMAY scheme. Besides, this scheme extends multiple benefits, and some of them are discussed below.

What are the features and benefits of the PMAY scheme?

  1. Substantial subsidy 

Availability of considerable credit to invest in a residence of choice falls under the primary Pradhan Mantri Awas Yojana benefits. The scheme allows individuals from the Economically Weaker Section to avail credit-linked subsidies based on their income structure. 

Features like Partnered Affordable Housing, Subsidies for Beneficiary Led Home Construction, and Rehabilitation of Slum Dwellers (In Situ) are some of the additional benefits offered by the PMAY.

Following are the income categories and the benefits available for them. 

  • Individuals falling under EWS/LIG category with an income of Rs.3 lakhs to Rs.6 lakhs are eligible to receive up to 6.5% subsidy on home loan interest rate. The eligible home loan availability is up to Rs.6 lakhs for a tenor of 20 years.
  • MIG-I group applicants with an annual income of Rs.6 lakhs to Rs.12 lakhs can receive a 4% subsidy. In addition, they can avail a loan of upto Rs.9 lakhs.
  • Eligible candidates belonging to the MIG-II group can avail a loan of upto Rs.12 lakhs. They are eligible to receive a 3% subsidy under the scheme.

It is imperative to know that individuals who are already beneficiaries of government housing schemes or own a pucca house won’t qualify the PMAY eligibility. 

  1. Housing for all

The PMAY scheme is an initiative by the government to facilitate house purchases. They targeted the construction of nearly two crore houses by the end of 2022. The primary goal is to improve the living conditions of economically backward sections from both rural and urban India. The slum dwellers can shift to pucca houses or urban settings by availing this scheme. 

  1. Benefits for minorities and women applicants

Pradhan Mantri Awas Yojana benefits also include facilities for female applicants. Under this scheme, women applicants can receive an affordable interest rate and substantial home loan. PMAY scheme also supports minorities, transgender, disabled, widows and senior citizens. In addition, senior citizens and the disabled can ask for a ground floor residence.

  1. Environment-friendly houses

The houses constructed under the PMAY scheme use eco-friendly materials and technology. This is an initiative to promote sustainable living. Moreover, this technique lowers pollution levels and ensures minimal damage to the environment.

To avail the said benefits, individuals need to make an application first. The steps for making PMAY application are discussed below.

How to make PMAY application online?

  • Visit the official PMAY website and log in by email.
  • Select Citizen Assessment option from the tab and choose benefit under the three components.
  • Enter respective Aadhaar numbers and redirect to the next page.
  • Fill in the personal and professional details as required.
  • Select the dialogue box and proceed.
  • The application will be automatically saved.

Individuals need to visit nearest common service centre or CSC for offline application and fill the respective form.

Irrespective of chosen application method, individuals must keep a copy of application number for future needs. This would also help them in keeping a tab of PMAY list. Therefore, eligible candidates must keep the documents handy to avail the benefits without hassle. 

Also read: PMAY Scheme: Know Benefits and Application Procedure

However, individuals can look for alternatives if the available credit doesn’t comply with purchasing expenses. For instance, many HFCs extend housing loans against simple eligibility and documentation. 

They also provide pre-approved offers that make loan applications simpler and hassle-free. These offers are usually available on financial products like home loan, loan against property, etc. Check your pre-approved offer by entering a name and contact number.

Apart from following the mentioned factors, individuals must keep a tab over updates made by government on PMAY rules. This would help them make most of Pradhan Mantri Awas Yojana benefits and take decisions accordingly.